Everyone’s go-to big box store ended the year with shocking news — mass store closures. Walmart, the hyperstore retailer has announced that 11 of their stores will be closed down across the United States. This decision was made due to the stores not performing as well as the company had hoped. This is the case for many, if not all, brick and mortar stores in this age of online retail. But one has to wonder if this seemingly downward trajectory Walmart is taking is as simple as it seems
Will there be a Walmart near you tomorrow?
It appears that 2024 was a year of big changes and closures for the retail company. Earlier in the year, the decision was made to shut down a colossal number of 51 of its health centers. The reasoning behind this mass closure was that the health centers were not a sustainable business model. Body cameras were also introduced to some branches. This was likely done in an attempt to deter shoplifting and theft, as well as to increase employee security.
In addition to this, other stores also underwent revamping which, in an ideal world, would naturally draw in new customers. This begs the question of whether or not in-person retail truly is becoming obsolete in this era of online shopping. Alternatively, the company may be struggling financially due to suboptimal business practices.
Which stores are closing?
The company announced that they will be shutting the doors of 11 stores across 6 states. A spokesperson for Walmart claimed, “While our underlying business is strong, this store hasn’t performed as well as we hoped.” Since public perception is everything when running a business, this diplomatic remark is most probably the tip of the iceberg of the state of the company and its future.
The list of stores across the country that have been closed are as follows:
California
- 605 Fletcher Parkway, El Cajon
- 40580 Albrae St., Fremont
- Neighborhood Market – 4080 Douglas Blvd., Granite Bay
- 2121 Imperial Ave., San Diego
- 2753 E. Eastland Center Drive, West Covina
Colorado
- 10400 E. Colfax Ave., Aurora
Georgia
- 4725 Ashford Dunwoody Rd., Dunwoody
- 3101 Roswell Rd., Marietta
Maryland
- 1238 Putty Hill Ave., Towson
Ohio
- 3579 S. High St., Columbus
Wisconsin
- Neighborhood Market – 7025 W. Main St., Milwaukee
What is the future of Walmart?
In an attempt to keep up with predominantly online retailers such as Amazon, the company launched an online retail service called Walmart+. This online shopping program was launched in 2020, likely to keep the company afloat during a difficult and uncertain time. The creation of this service aided the shopping needs of their consumers amidst the COVID-19 pandemic and its subsequent lockdown. A direct result of the pandemic and its lockdown is that retail in general has massively shifted online. The convenience of online shopping, unfortunately, cannot be competed with, especially not when considering the fuel or transport costs required to visit a store in-person.
At the 2024 Morgan Stanley Global Consumer and Retail Conference, the CEO of Walmart, Doug McMillon noted that the company is working to grow interest in the program so as to increase customer enrollment. This was a strategic and necessary step in the right direction for the company. This era of instant gratification cannot be combatted and companies have no choice but to comply to the shift to online retail if they wish to remain relevant and survive the economy.
Another implication of one of the largest retailers in the country downsizing at such a large scale is the inevitable amount of layoffs to employees that will have to be implemented. This could then lead to current employees experiencing extra stress at the prospect of losing their jobs at any given moment if the closures continue.