You better get informed and check before heading to your nearest Walmart from now on. Because Walmart is closing dozens of stores across the United States, including some in Kentucky. The company says it will try to keep affected workers employed and will offer them the opportunity to transfer to other stores.
Walmart is shutting some of its stores and not for the first time. According to the company, the closures of the Walmart stores are part of a plan to “streamline and strengthen our e-commerce platform and better serve our customers.”
Is Walmart Closing?
Walmart as a company is not closing its doors as of now. However, according to recent reports, Walmart has been closing more than 100 stores annually for the past several years. These stores include both small and large format stores like Walmart Express, Supercenters, Discount Centers, and Neighborhood Markets across the United States.
This decision was reportedly made to focus on e-commerce initiatives and strengthen its strategic position within the retail industry. It remains to be seen how long this policy will continue. Following the trends of previous years, Walmart has once again decided to shut down some of its stores not only in the US but worldwide.
Reason Behind The Closing Of Walmart Stores
Walmart announced some time back that it would be closing 200 stores worldwide due to decreased sales. This includes 144 Walmart stores in the United States. The closures are part of a strategic plan that was launched back in 2016, which aimed to reduce the company’s global footprint by $2 billion over the next two years.
The decline in sales is attributed primarily to changing consumer habits and competition from Amazon, Target, and other big-box retailers. These companies can offer more competitive prices, have new delivery options, and personalized services for their customers.
In addition, online shopping has made it easier for consumers to purchase items they need without having to leave home or deal with crowds at brick-and-mortar locations. This shift away from traditional shopping has had negative consequences for both Walmart and other retailers alike.
This move marks yet another chapter in the tumultuous story of Walmart’s struggle against its competitors. By opening up its online store, Walmart wants to invest in building its app, website, delivery system, and other services to compete with other online retailers and regain its footing in the market.
What Does It Mean For Walmart And Its Customers?
Walmart’s decision to close hundreds of stores across the United States is likely to have a significant impact on its customers and employees. First and foremost, these closures will mean that fewer Walmart locations will be available for customers in certain areas.
This could lead to higher prices at the remaining stores as supplies are funneled towards outlets that remain open. Additionally, this may result in longer lines and reduced selection.
For employees, the most important thing to know is that the company has made arrangements for them to be transferred to other Walmart locations or offered jobs at nearby stores. In addition, depending on their age and location, some customers may receive monetary incentives from Walmart to retain them as loyal shoppers.
Customers who frequently shop at Walmart may find it more difficult to get their hands on products they need or want. And those who rely on Walmart as their primary source of income could see a decrease in earnings due to lost sales within the local community.
While it is too early to estimate how many positions will be lost due not only Walmart’s decision but recent trends within the retail industry more broadly where same-store sales growth has slowed down significantly over time. If you are located near one of these closings, it may be best to start looking for places to shop elsewhere soon.
Conclusion
To wrap things up, it is mentionable that this trend of Walmart closing its stores seems like a recurring event in the future as it has been for some years now. This happened to catch up with customer demands. Although some believe the company’s mismanagement of stores was another major reason for losing popularity and eventually going out of business. This is surely a major setback for the company and its employees.
FAQs
- Is Walmart closing down all of its Canadian stores?
No, Walmart is not closing down all of its Canadian stores. But it closed six of its Canadian stores last year.
- How is the customer service at Walmart?
Walmart is oftentimes called out for its questionable customer service and unfair employees, but they are changing its market strategy to stay in the business.
- Do you think Walmart is doing a good job at competing with Amazon and other online retailers?
Walmart has made some incremental changes to compete with online retailers, like focusing on e-commerce and mobile shopping with Pickup Now and Scan & Go.
- Do you think that these Walmart stores will be replaced by other stores in the future?
Walmart stores may likely be replaced by other stores like Amazon warehouses, Target, etc in coming years.
