Four months into the new year, we are beginning to see more precise patterns in retail performance from the busy Q4 holiday shopping period, identifying which retailers thrived and which faced challenges.
Walmart has just become one of the low-cost retailers that have declared their shutdown. According to Business Insider, two Walmart stores in California and one in Maryland are scheduled to close. Additionally, according to the article, Walmart has already closed three other locations: two in California and one in Ohio. This information comes soon after Dollar Tree declared earlier this week that it would close almost 1,000 Family Dollar locations this year.
Walmart has been systematically closing shops that it deems to be “underperforming” in recent years. The retail behemoth shut down just a handful of shops nationwide in 2022, but in 2023, the number of closures surged to nearly two dozen. It seems that store closures are increasing again in 2024 after a brief dip. Continue reading for a complete list of Walmart stores closing in 2024.
Key Takeaways
- Strategic Store Evaluations: Walmart’s recent closures in California, Ohio, and Maryland highlight the company’s strategic approach to evaluating store performance. Despite operating over 5,000 stores nationwide, Walmart closes locations that consistently fail to meet financial expectations. These closures align with Walmart’s strategy to optimize its store portfolio and ensure efficient operations.
- Comprehensive Decision-Making Process: A thorough assessment procedure is applied to each closure, highlighting the fact that these choices are not made at random. Historical and current financial performance are among the factors taken into account, guaranteeing a thorough assessment prior to completing any closure. Walmart’s dedication to making well-informed decisions that support its long-term business objectives is shown in this systematic approach.
- Employee Support and Continuity: Walmart prioritizes supporting affected employees by offering opportunities for transfers to other locations. The company guarantees pay for a specified period, ensuring a smooth transition for employees impacted by store closures. This commitment to employee welfare underscores Walmart’s values of fairness and responsibility towards its workforce.
- Continued Customer Service: Walmart reiterates its dedication to servicing consumers through its remaining sites, online channels, and delivery services, even in the face of closures. By being a major player in local marketplaces, Walmart wants to continue satisfying customer needs and adjusting to changing retail trends. Walmart’s commitment to ensuring customer satisfaction highlights its adaptability and tenacity in the face of shifting market conditions.
Analyzing Walmart’s Recent Store Closures and Strategic Shifts
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Walmart has closed two additional stores in California and one in Maryland, totaling six confirmed store closures this year. Previously, the company disclosed plans to open or start building 14 new locations. These recent closures, which include a store in Ohio and two in the San Diego metro area, were made because the locations failed to meet Walmart’s financial performance expectations.
Charles Crowson, the Director of Global Communications and Corporate Affairs at Walmart, stated that while the company operates over 5,000 Walmart stores and Neighborhood Markets across the U.S., some of these locations unfortunately do not meet their financial expectations. Despite a generally underlying solid business, these particular stores have underperformed.
Walmart does not arbitrarily decide on store closures. Instead, several variables are considered before deciding whether to close a business. Crowson stressed that these are serious decisions. They are the outcome of a thorough evaluation process, and several factors, including financial performance in the past and present, determine the decision to move forward with closures. These closings align with Walmart’s plan to close stores that do not meet expectations.
Walmart stated that employees affected by store closures are eligible for transfers to other locations. The company will continue to operate many stores and warehouse clubs in each local market. As of last October, Walmart had over 4,600 retail outlets in the US, including 3,548 supercenters, 356 discount stores, approximately 700 neighborhood markets, and other small-format stores, and around 600 Sam’s Club warehouses.
In January, Walmart announced plans to build or remodel over 150 stores over the next five years, with renovations planned for 650 locations this year. Last year, at least 22 Walmart stores across the US closed, including four in Chicago, and poor financial performance was cited as the reason. In 2023, Walmart was among at least 20 major retailers identified by Business Insider as having announced the closure of as many as 2,847 stores in the US.
Complete List of Walmart Stores Closing in 2024
- 2121 Imperial Avenue, San Diego:
The Walmart Neighborhood Market at 2121 Imperial Ave., San Diego, was one of the initial stores to close in 2024, shutting its doors on February 9, as previously reported by Best Life. Located in the Logan Heights area, its closure was keenly felt by local shoppers who were concerned about future shopping alternatives.
Despite the robust overall business, Walmart indicated that this store, along with the one on Fletcher Parkway, failed to meet financial expectations. The decision was made following an extensive review process. Furthermore, Walmart was unable to secure lease renewals with the property managers. The closure affected 125 employees at the San Diego store.
- 3579 S. High Street, Columbus, Ohio:
Walmart at 3579 S. High Street in Columbus, Ohio, recently ceased operations due to not meeting financial goals, CBS affiliate 10 WBNS reported. The closure occurred on February 16, as company spokesperson Brian Little confirmed in a statement to Best Life. Although the main store has closed, the pharmacy continued to operate until March 4.
The company has made provisions for the 180 affected employees, offering them opportunities to transfer to other locations and guaranteeing pay until May 3. Employees who choose not to transfer by that date will receive severance packages. Little expressed gratitude for the community’s patronage and assured that Walmart hopes to continue serving them at other area locations, through their website, and via home or business delivery services.
- 2753 E. Eastland Center Drive, West Covina, California:
Another upcoming closure has been announced for Walmart, this time at 2753 E. Eastland Center Drive in West Covina, California, as KTLA reported on February 26. This store is scheduled to close on March 29.
Walmart Communications Director Alicia Anger acknowledged the community’s support and expressed gratitude to customers. She reiterated the company’s commitment to continue serving customers at the remaining 16 locations in the area through its website and through delivery options.
- 605 Fletcher Parkway, El Cajon, California:
Similarly, another Walmart store closure occurred on February 9 in El Cajon, located at 605 Fletcher Parkway. Much like that of the Logan Heights store, this closure came as a surprise and disappointment to many customers, with concerns also arising about the potential for creating a food desert in the area.
The company attributed the closure of the El Cajon store to several factors, primarily financial underperformance. Walmart also mentioned that it could not reach a lease renewal agreement with the property owner, leading to the decision not to renew.
- 4080 Douglas Blvd., Granite Bay, California
California is slated for another store closure, with the Walmart Neighborhood Market in Granite Bay, a suburb of Sacramento, scheduled to shut down. The store, located at 4080 Douglas Blvd., will close its doors on April 12, 2024.
The Granite Bay store employs 81 individuals, all of whom Walmart has stated are eligible for transfer to other locations and will continue to receive their pay until June 14. Employees who have not transferred by then will receive severance packages. According to Walmart, the decision to close the store comes after it failed to meet the company’s financial expectations.
In a statement regarding the closure, Walmart thanked its Granite Bay customers for their patronage. It reiterated its commitment to continue serving them at seven other regional locations through its website and delivery services to their homes or businesses.
- 1238 Putty Hill Avenue, Towson, Maryland
On the East Coast, another Walmart store is preparing to close its doors, this time in Towson, Maryland. The Daily Record reports that the 1238 Putty Hill Avenue store is scheduled to close on April 5.
This store is one of the locations identified by Walmart as underperforming. Similar to other closures, the employees at this store will continue to be compensated through June 14. They can transfer to another Walmart location or accept severance packages.
In a statement, Walmart emphasized that the decision to close the store was not taken lightly and followed a detailed review process. Despite having nearly 5,000 stores nationwide, some do not meet financial expectations. Although the overall business remains robust, this particular store did not perform as anticipated. Walmart assures that all employees will be compensated through mid-June and have opportunities to transfer to other locations.
About Walmart
Walmart Inc. is a retail giant that manages various physical stores, including grocery stores, hypermarkets, supermarkets, discount stores, department stores, and neighborhood markets, alongside its eCommerce platforms. The company’s stores feature various products, including groceries, health and wellness items, consumables, office supplies, entertainment products, technology, apparel, and home goods, all offered at consistently low prices.
Additionally, Walmart operates warehouse clubs under the Sam’s Club brand. The company sells products under private labels and licensed brands such as Mainstays, Equate, Onn, George, Time and Tru, Wonder Nation, Parent’s Choice, and No Boundaries. Beyond retail, Walmart provides various services, including fuel stations, gift cards, and a suite of financial services such as prepaid cards, money orders, check cashing, bill payments, and money transfers. Walmart markets its products globally through e-commerce portals spanning the Americas, Africa, and Asia, with its headquarters located in Bentonville, Arkansas, USA.
Conclusion
Walmart’s decision to close several stores in 2024 reflects its strategic approach to optimizing its retail footprint. Despite robust overall business performance, some locations failed to meet financial expectations, leading to California, Ohio, and Maryland closures. While impacting local communities and employees, these closures align with Walmart’s commitment to maintaining a competitive edge in the retail landscape. Each closure results from a thorough evaluation process, ensuring that strategic decisions are made based on performance metrics.
Walmart remains dedicated to serving customers through its remaining stores, online platforms, and delivery services, reaffirming its position as a retail giant offering diverse products at consistently low prices. As the company continues its trajectory of growth and adaptation, these closures signify a calculated step towards optimizing operations and enhancing customer experiences.
