Wal-Mart opened smaller-format stores in the U.S.in 2011, called Wal-Mart Express, that were convenience stores.
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The stores Walmart will close only represent a small fraction of the more than 11,000 stores the retailer has worldwide and not even 1% of the global revenue generated by the company.
Also Friday, Walmart announced that as many as 405 new stores would be opened worldwide during its next fiscal year, with a focus on large warehouse stores and suburban areas.
None of the company’s six Walmart and one Sam’s Club stores in the Coachella Valley are on the list of 154 domestic closures.
“We believe Walmart’s announcement of store closings this morning is just a “pruning” of its voluminous network”, said Charlie O’Shea, Moody’s lead retail analyst, in a statement.
CEO Doug McMillon told investors three months ago previously that the world’s largest retailer would review its fleet of stores. “So we are committed to growing, but we are being disciplined about it”.
On Friday WalMart announced the closing of 269 stores across the globe. They include the store at 5502 Monterey Highway in San Jose, which is scheduled to close January 28, and one at 8400 Edgewater Drive in Oakland, which is scheduled to close Sunday.
The store closures are expected to affect about 10,000 U.S. Walmart workers.
According to Walmart, store closings will include 102 of its express stores.
A total of 10,000 Walmart associates will be impacted by the closings.
The closings highlight the challenges WalMart faces in finding growth opportunities in both its home market, which it has blanketed with some 4,500 stores, and overseas, where it has grown to more than 6,000 locations but has struggled to generate consistent returns.
Wal-Mart will continue to operate five other locations across Robeson County, including a Supercenter and two Neighborhood Market stores in Lumberton, a Supercenter in Pembroke and a Neighborhood Market in St. Pauls. Simpsonville has a Super Wal-Mart and Neighborhood Market about 15 miles from Gray Court.
“We invested considerable time assessing our stores and clubs and don’t take this lightly”.
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Delia Garcia of Walmart said about 1,100 employees will be affected by the closure of the seven Southern California stores.
