WalMart to close 269 stores globally, affecting 16,000 jobs
THE WOODLANDS, Texas - WalMart announced the closing 269 stores globally by the end of January, which includes 154 in the United States, most of which are the 102 Walmart Express stores, a smaller retail store intended to compete with the dollar discount stores.
The smaller-format stores located closer to shoppers’ homes, have not been as profitable as their Supercenters, which are typically located on the outskirts of towns. A dozen Supercenters are slated for closing. The Supercenter located on the northwest corner of SH 242 and I-45N at 3040 College Park Drive, and the Supercenter south of The Woodlands at 1025 Sawdust Road, will not be affected, however, the one located at 7075 FM 1960 Road West, will close January 28.
Three other Supercenters in Texas will close: Austin, Brownsville, and Raymondville; in addition to five neighborhood markets, and 20 Express stores.
The closings will eliminate 16,000 jobs in all; 10,000 in the U.S. Investing in e-commerce activities and store wages to spur sales growth, has taken a toll on profits. In addition to the slow growth in sales, the company cited the consumers’ shift to online shopping.
The restructuring could result in a $600 million+ hit to earnings, most of which would occur in the current quarter. The results are expected to be announced February 18. The company said Friday, that the 269 stores being closed represent 1% of its annual sales, amounting to $486 billion last fiscal year.
The news comes on the heels of Macy’s announcement of the closing of 40 department stores, who also indicated that online sales had affected its holiday shopping revenue. See related link Macy's at Woodlands Mall not included in the 40-store closings.