Walmart Due to a group of sites that “lose tens of millions of dollars a year,” Walmart said on Tuesday that it is shutting four of its Chicago-area stores.
Walmart is shutting four locations in Chicago
The retail behemoth has announced that this coming Sunday will see the closure of the Chatham Supercenter, the Walmart Health centre, and the Walmart Academy at 8431 S. Stewart Ave., the Kenwood Neighborhood Market at 4720 S. Cottage Grove Ave., the Lakeview Neighborhood Market at 2844 N. Broadway St., and the Little Village Neighborhood Market at 2551 W. Cermak Road.
“The simplest answer is that collectively, since we launched the first Chicago shop over 17 years ago, we have not been successful,” Walmart stated in a statement. “These stores lose tens of millions of dollars a year, and their yearly losses have nearly quadrupled in just the last five years.”
The statement continued, “The remaining four Chicago locations continue to experience the same financial challenges, but we believe that this choice affords us the best opportunity to support their continued operation and community service.”
According to Walmart, “we have attempted a variety of initiatives over the years to enhance the commercial performance of these sites, including creating smaller stores, localising our product selection, and providing services outside of traditional retail.
The firm added, “We have spent hundreds of millions of dollars in the city, including $70 million in the past two years to modernise our shops and construct two new Walmart Health centres and a Walmart Academy training facility.
In a press statement, Wal mart stated that while it was anticipated that these improvements would boost store performance, “Unfortunately, these initiatives have not meaningfully eased the underlying business issues our shops are experiencing.”
Now that the shops are about to close, those who work there can move to other Wal mart sites.
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According to Wal mart, hiring managers from nearby facilities will be in each of these locations this week to assist employees in starting to look for their next opportunity.
The business stated that it intends to reuse the structures it would be leaving behind so they may continue to be “essential aspects of their communities.”
Until August 11, 2023, the affected employees will be compensated, unless they transfer to another business.
Wal mart said employees who are qualified will get severance compensation after that date.