Walmart announces the closure of various branches in the following locations in the United States; What happens to the chain?

Despite its undeniable presence in the retail market in United States and in a large number of countries around the world, Walmart announced the closure of a series of stores in various states of the country. 

According to the statement shared by the company itself, these stores are located in various territories such as Georgia, Ohio, Wisconsin, and primarily, the state of California. 

Regarding the reason for these closures, the chain reported that the low financial performance of these branches, as well as the adverse economic context that surrounds the entire country, were some of the reasons for this decision. 

According to the report, these will be the stores closing in the state of California: 

• 2121 Imperial Avenue, San Diego, 92102 

• 605 Fletcher Parkway, El Cajón, 92020 

• 2753 E. Eastland Center, Dr. West Covina, 91791 

• 40580 Albrae Street, Fremont, 94538 

• 4080 Douglas Boulevard, Granite Bay, 95746 

In addition to the above, stores in the cities of Columbus, Ohio; Milwaukee, Wisconsin, and Towson, Maryland will also close. 

Is Walmart in crisis?

Despite the challenging context described by Walmart, coupled with the increase in inflation and COLA (Cost of Living Adjustment) in the United States, which has led to price hikes, this does not imply that the company is in a financial crisis or experiencing a decline in its consumer impact. 

According to the shared statement, the reason for the closure also responds to a strategy focused on avoiding high concentration of stores in the same area. 

According to Walmart, maintaining a large number of branches in a close area has caused a drop in demand for those stores with less time in operation due to the "weight" and "prestige" gained by spaces with more operational time. 

In previous years, the chain owned by the Walton family carried out a similar strategy with the aim of opening new stores in the future. Additionally, and within the same official store page, it was reported that Walmart plans to open more than 150 new stores in the next 5 years, an expansion plan aiming to position the chain as the one with the greatest presence throughout the United States. 

This is not the most recent change implemented by Walmart regarding its expansion strategy. In previous days, the company announced the launch of its Same-Day Pharmacy Delivery service across the country after starting operations in just 6 states in October 2024. 

*This article has been automatically translated using artificial intelligence