Walmart announces mass closure of 269 stores

Walmart announced closing 269 stores across the world on Friday. Of these, 154 stores are located in the US, while 60 in the Brazilian market as well as rest in other markets worldwide.

The stores that are being closed constitute only a fraction of over 11,000 stores that Walmart owns around the world. These stores account for merely one percent of its global revenue. The shuttering of the stores will affect around 16,000 workers, of which 10,000 are from the US, Walmart confirmed.

“More than 95 percent of the closed stores in the US are within 10 miles on average of another Walmart, and the hope is that these associates will be placed in nearby locations,” Walmart stated in its media release on Friday. “Where that isn’t possible, the company will provide 60 days of pay and, if eligible, severance, as well as resume and interview skills training. Whether with Walmart or elsewhere, the company’s objective is to help all associates find their next job opportunity.”

The announcement came from Walmart following CEO Doug McMillon’s address to investors three months ago where he said that the company will review its store fleet at the time when there is tough competition in the market, including Amazon.com’s brilliant performance.

In the US, most of the shuttering stores belong to small-format category called Walmart Express. These stores were launched in 2011 under a test program. McMillon also said that closing stores was not an easy decision to make, but for strengthening the company’s capability in future, it was a necessary step to be taken. He added that Walmart will come up with more than 300 stores across the globe in 2017.

No doubt, sales have shown better result yet the retailer warned stakeholders of lower profits. This is because of the investment it has made in improving its workforce as well as e-commerce.