Latest reports suggest that the out of the 296 locations that the company is shutting down will include 154 USA locations and all of the company’s 102 Express format stores.
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Walmart also plans to open 200-240 stores worldwide in the coming year.
In the U.S., Walmart will focus on its Neighborhood Markets, Supercenters, its e-commerce business and its pickup services for its shoppers.
The closures include 23 Neighborhood Markets, 12 Supercenters, seven Puerto Rico locations, six discount centers, and four Sam’s Clubs.
The shutdown stores will represent two percent of Walmart’s global store count (11.600) and three percent of its United States stores, total 5,310.
The decision to close stores was made after looking at a number of factors, including financial performance as well as strategic alignment with long-term plans.
In a news release, the Bentonville, Arkansas-based company said it would close 154 stores in the U.S. and 115 others overseas, including dozens in Brazil that had recently stopped operating. CEO Doug McMillon told investors that the world’s largest retailer would review its fleet of stores with the goal of becoming more nimble in the face of increased competition from all fronts, including from online rival Amazon.com. “So we are committed to growing, but we are being disciplined about it”, McMillon said.
Delia Garcia of Walmart said about 1,100 employees will be affected by the closure of the seven Southern California stores. The remainder of the stores being closed overseas are also located in Latin America and, like the stores being closed in Brazil, are described by the company as losing money. Diverting attention and resources to doing so will temporarily affect its profit margin and Wal-Mart said earnings may be down 12 percent next year.
Stores that will be closed in Southern California will be Walmarts at 151 E. Fifth St.in Long Beach, effective January 28, and at 4101 Crenshaw Blvd.in Baldwin Hills, effective Sunday. The Express stores have been in a pilot phase since 2011, the company states. Walmart is closing its store in Port Covington, which is a site for the future headquartering of Under Armour campus.
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Wal-Mart estimates 16,000 associates would be affected by the closings, including about 95 employees at the Frisco location.
