Walmart has revealed that four of its Chicago stores will be no more, as the company has found it impossible for the locations to be profitable.
While four other Walmarts will remain open, the company noted that every store it has in the city has suffered monetary losses for years.
“The simplest explanation is that collectively our Chicago stores have not been profitable since we opened the first one nearly 17 years ago – these stores lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years. The remaining four Chicago stores continue to face the same business difficulties, but we think this decision gives us the best chance to help keep them open and serving the community,” Walmart wrote in a press release.
WGN9 reported that the closures serve as a “big blow” to community members who depended on the availability of its products.
Walmart closing 4 stores in Chicago. More retailers are sure to follow with the weak liberal policies towards smash and grabs pic.twitter.com/qxvyXmyFLP
— • ᗰISᑕᕼIᗴᖴ ™ • (@4Mischief) April 12, 2023
The release explained that numerous attempts have been made to better the cash flow issue, with little to no success.
“Over the years, we have tried many different strategies to improve the business performance of these locations, including building smaller stores, localizing product assortment, and offering services beyond traditional retail. We have invested hundreds of millions of dollars in the city, including $70 million in the last couple years to upgrade our stores and build two new Walmart Health facilities and a Walmart Academy training center,” it read. “It was hoped that these investments would help improve our stores’ performance. Unfortunately, these efforts have not materially improved the fundamental business challenges our stores are facing.”
The company alleged that there was nothing local city leaders could do to assist in making operations worthwhile despite their being “open and supportive.” The four locations are planned to shut their doors for good by Sunday, April 16, according to Walmart.
A video posted on Twitter earlier this month allegedly showed a woman casually stealing a TV from a Chicago location.
47/Cottage Walmart (June 2020)
What a time to be online…#Chicago #ChicagoScanner https://t.co/z8a26uYQta pic.twitter.com/ZcpYPUX5Sx
— Emjay Phan (@heyFATabbot) April 11, 2023
“All associates will be paid until Aug. 11, 2023, unless they transfer to another location during that time,” the company announced. “After Aug. 11, if they do not transfer, eligible associates will receive severance benefits.”
This news comes after numerous reports last month revealed that every single store Walmart operates in Portland, Oregon will be shut down after relentless shoplifting sunk store profits.