Walmart closes stores in the U.S.

Walmart to Close Stores in Seven States
Digital Competition and High Costs Take a Toll
Thousands of Employees Will Lose Jobs

In an unexpected decision that has raised concerns across the United States, Walmart announced the permanent closure of several stores in different states.

California, Oregon, Washington, New York, Florida, Wisconsin, and Illinois are among the areas affected by this move, which directly impacts both consumers and employees.

The decision, explained Doug McMillon, Walmart’s CEO, is driven by economic and strategic factors, with an emphasis on profitability issues in certain stores.

McMillon noted that in areas with a high cost of living, many locations report poor sales performance, resulting in losses that undermine the sustainability of the business.

Walmart Closes Stores Across the U.S.

Walmart closes stores, stores, branches, MundoNOW — Walmart closes stores in the U.S. PHOTO: Shutterstock

Additionally, maintenance, leasing, and labor costs have risen significantly, making it unsustainable to keep these stores open.

This is compounded by the rise of e-commerce, where Walmart faces intense competition, particularly from giants like Amazon.

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Despite the retail chain’s efforts to expand its e-commerce platform, Walmart has not achieved the same profitability in digital sales as its competitors.

The company’s CFO acknowledged that, although investments have been made in logistics and warehousing, many physical stores continue to incur losses.

These losses, he explained, hinder the digital growth of the chain, creating an unsustainable problem for the business model, according to Mundo Deportivo.

The closure of these stores will especially affect suburban and rural communities, where Walmart has often been the main source for basic products.

From groceries to clothing and essential items, the impact on access to these products will be significant for residents in these areas.

Consumers will need to travel greater distances to find alternatives, increasing both travel time and transportation costs.

Reasons Behind U.S. Closures

The move comes amid inflation and an economic crisis in the United States, where prices for basic products have risen significantly.

In addition to affecting consumers, this decision hits local employment, as each Walmart store employs an average of about 300 people.

It is estimated that over 2,000 workers could lose their jobs as a result of this measure, adding pressure to a labor market already facing its own challenges.

For many employees, Walmart has been a stable source of income and benefits, and the closure of these stores represents a significant loss.