Wal-Mart to close 269 stores


spaminator
#1
Wal-Mart to close 269 stores
Nathan Layne, REUTERS
First posted: Friday, January 15, 2016 09:58 AM EST | Updated: Friday, January 15, 2016 03:21 PM EST
Wal-Mart Stores Inc. said on Friday that it would pull the plug on its smallest store format, Walmart Express, and close 269 locations as it contends with higher costs in its home market of the United States and disappointing results overseas.
The move includes Wal-Mart's largest-ever single culling in the United States, where the company is closing 154 stores. The other 115 stores are in Latin America, including 60 in Brazil.
The world's largest retailer said it hoped to transfer many of the 10,000 U.S. and 6,000 Latin American workers in the closed stores to other locations.
Wal-Mart's earnings have been under pressure due to last year's decision to raise entry-level wages as well as higher investments aimed at closing the gap online with Amazon.com Inc. At the same time, Wal-Mart is struggling overseas, where a strong U.S. dollar reduces the value of local sales.
The closings come three months after Chief Executive Officer Doug McMillon disclosed plans to review global operations and shut underperforming stores. Friday's announcement marks the first step in that restructuring effort.
Wal-Mart said the closures represented less than 1% of its global revenue. The biggest cuts are in the United States, including all 102 Walmart Express stores.
At 12,000 to 15,000 square feet, Express stores are less than one-tenth the size of a typical Walmart Supercenter. The format had been in pilot since 2011 but did not deliver the desired results.
Moody's retail analyst Charlie O'Shea described the closures as a long-overdue "pruning."
"I've always wondered why it's taken so long to cull the U.S. store base because they really haven't done much of it over the past several years," O'Shea said.
Wal-Mart said the move would reduce earnings by 20 cents to 22 cents a diluted share, with nearly all of that to be booked in the fourth quarter ending this month. In November, it forecast a full-year profit of $4.50 to $4.65.
The company's shares fell 2.6% to $61.39.
The other 52 U.S. stores to be closed are a mixture of Supercenters, Wal-Mart's largest format; discount stores; Neighborhood Market groceries; and outlets in the company's Sam's Club bulk-selling wholesale chain.
The closings highlight the challenges Wal-Mart faces in finding growth opportunities in both its home market, which it has blanketed with some 4,500 stores, and overseas, where it has grown to more than 6,000 locations but has struggled to generate consistent returns.
In an internal memo to staff, McMillon said a regular review of the company's assets was vital for growth. "Doing this ensures we focus and align our resources in ways that build a strong company positioned to win in the future," said the memo, which was seen by Reuters.
The Arkansas-based retailer said it would still open 142 to 165 stores in the United States in the year ending in January 2017. For the first time, it also disclosed plans to open 200 to 240 stores overseas in the coming year.
The company said about 95% of the closed U.S. stores were within 10 miles of another that it owns, making it possible to move some workers to other locations. It said it would provide 60 days of pay and severance for eligible workers not placed.
The cuts drew criticism from a group backed by the United Food & Commercial Workers International Union, which for years has been behind a campaign pushing for better wages and benefits for Wal-Mart employees.
"Sadly, these latest store closings could very well be just the beginning," Jess Levin, communications director at Making Change at Walmart, said in an emailed statement. "This sends a chilling message to the company's hard-working employees that they could be next."
Wal-Mart to close 269 stores | Money | Toronto Sun
 
IdRatherBeSkiing
#2
Canada is spared for now.
 
Kreskin
#3
Probably the best thing to happen to those store workers. Get out. Move on.
 
petros
+1
#4
To where? Circle K?
 
JLM
#5
Quote: Originally Posted by IdRatherBeSkiingView Post

Canada is spared for now.

Probably a good thing, they are doing a booming business here and from what I can gather on the news tonight are under cutting Super Stores (Loblaw's) prices on produce.
 
petros
+2
#6  Top Rated Post
$7 for cauliflower instead of $8?
 
JLM
#7
Quote: Originally Posted by petrosView Post

$7 for cauliflower instead of $8?

That's not a problem, guy don't need cauliflower to survive! Buy turnips instead, more uses!

Quote: Originally Posted by petrosView Post

$7 for cauliflower instead of $8?

What are they going to do with all these cauliflower? Better to sell them for $2 than throw them on the garbage.
 
damngrumpy
#8
I have gone into Walmart off and on at different times in the last few months
and it does not seem as busy any time I go there since about October.
Shop more at Superstore and Costco than Walmart.
 
JLM
#9
Quote: Originally Posted by damngrumpyView Post

I have gone into Walmart off and on at different times in the last few months
and it does not seem as busy any time I go there since about October.
Shop more at Superstore and Costco than Walmart.

Yeah, I personally prefer Superstore. Years ago when the kids were small I dealt with Costco a lot, but no point to it now. Good place to buy Hallowe'en candy in bulk.
 
B00Mer
#10
Quote: Originally Posted by IdRatherBeSkiingView Post

Canada is spared for now.

Canadian Walmart is expanding, buying up old Target stores..

Quote: Originally Posted by damngrumpyView Post

Shop more at Superstore and Costco than Walmart.

Let's see, go to Superstore and your looking for a loonie to use a cart, I don't carry cash, I use debit, so strait off the bat it's inconvenient. Oh yeah, you have to buy bags and bag your stuff yourself. LOL

Costco, but a membership to buy in bulk, what a snazzy idea. If you require 6 of everything that day.

Costco is perfect for those Doomsday Preppers.. everything in bulk.
 
petros
+1
#11
Quote: Originally Posted by damngrumpyView Post

I have gone into Walmart off and on at different times in the last few months
and it does not seem as busy any time I go there since about October.
Shop more at Superstore and Costco than Walmart.

Christmas is over.
 
Jinentonix
#12
Quote: Originally Posted by B00MerView Post

Canadian Walmart is expanding, buying up old Target stores..



Let's see, go to Superstore and your looking for a loonie to use a cart, I don't carry cash, I use debit, so strait off the bat it's inconvenient. Oh yeah, you have to buy bags and bag your stuff yourself. LOL

Costco, but a membership to buy in bulk, what a snazzy idea. If you require 6 of everything that day.

Almost as silly as the Drive-Thru Guns 'n' Alcohol stores I've seen in the US.
 
B00Mer
#13
Quote: Originally Posted by JinentonixView Post

Almost as silly as the Drive-Thru Guns 'n' Alcohol stores I've seen in the US.

They are successful.. I used them passing though Schulenburg, TX (external - login to view). Picked up a nice revolver there.. gotta' try it at least once.
 
Tecumsehsbones
#14
Quote: Originally Posted by petrosView Post

To where? Circle K?

Unemployment.
 
Curious Cdn
+1
#15
It sure won't be around here. Most days, you can't get a parking spot at Walmart. It's just about the only general merchandiser left, short of the Dollar Store.
 
IdRatherBeSkiing
#16
Quote: Originally Posted by damngrumpyView Post

I have gone into Walmart off and on at different times in the last few months
and it does not seem as busy any time I go there since about October.
Shop more at Superstore and Costco than Walmart.

Quote: Originally Posted by JLMView Post

Yeah, I personally prefer Superstore. Years ago when the kids were small I dealt with Costco a lot, but no point to it now. Good place to buy Hallowe'en candy in bulk.

I have never done Costco but I hate the Superstore. I don't know why but it just gives me a bad vibe every time I have gone there.
 
Curious Cdn
+1
#17
You had better know what stuff costs before you go into a Costco. There are some deals to be had, there but most of the merchandise is overpriced.
 
bill barilko
#18
Spent about 20 minutes in a local Wally Werld a few days ago-not much for bargains to be had and some of the prices in the food section were totally over the top-$1.88/lb for Red Onions that I can buy for $0.99 a few blocks from my house in one of the pricier neighbourhoods in the city-$0.49 if you know where to look-ditto Yellow and fancy White Onions.

In fact I never saw one single food item I couldn't buy cheaper somewhere else.
 
Cannuck
#19
Quote: Originally Posted by damngrumpyView Post

I have gone into Walmart off and on at different times in the last few months
and it does not seem as busy any time I go there since about October.
Shop more at Superstore and Costco than Walmart.

We shop at Safeway and then get 10 cents off a litre for gas. Safeway prices are comparable. In fact, I think they're all pretty much in line.
 
DaSleeper
#20
Quote: Originally Posted by Curious CdnView Post

You had better know what stuff costs before you go into a Costco. There are some deals to be had, there but most of the merchandise is overpriced.

Tat's what I found too, Only go once a year on my daughter's card, stock up on vitamins and such for the year.
I only glance at the electronics section...never found any deals to be had there.
 
IdRatherBeSkiing
#21
Quote: Originally Posted by CannuckView Post

We shop at Safeway and then get 10 cents off a litre for gas. Safeway prices are comparable. In fact, I think they're all pretty much in line.

Safeway is now Sobey's isn't it? They were sold a few years back. I used to like them in Saskatchewan.
 
Walter
#22
This whole thread is a lie because BHO just said the opposite.

httpwwwyoutubecomwatchvbTuuLBk4d48

 
Ludlow
#23
Hopefully they will relocate most of the employees in their other stores.

Gee. What a surprise you would apply this to that. Incidentally I might have broken my little toe the other day because I was thinking about the sotu speech so it's Obamas fault as well.
 
MHz
#24
I'm sure they will (not) relocate 10,000 people that puts 10,000 locals out of a job. The old managers will be gathering the shopping carts in the parking lot. Good news for Dollar Store.
 
JLM
#25
Quote: Originally Posted by Curious CdnView Post

You had better know what stuff costs before you go into a Costco. There are some deals to be had, there but most of the merchandise is overpriced.

I'm not sure about now but going back 30 years their meat was always out of sight, further ahead just to watch the flyers!

Quote: Originally Posted by WalterView Post

This whole thread is a lie because BHO just said the opposite.

httpwwwyoutubecomwatchvbTuuLBk4d48

Going to be tough when Obama is gone, not sure there's another man who can fill his boots!
 
B00Mer
#26
I'm not sure what the big deal is...

The Walmart Express was designed to go up against CVS, Rx and other small Pharmacy Chain Stores.. they failed. It might be that they have reached a saturation point.



It would be like competing against Shopper Drug Mart in Canada. Shoppers has their niche customer base and Walmart Large Chain stores has theirs.

No sense in trying to mix oil and water.
 
mentalfloss
#27
Free trade is a bitch.
 
petros
#28
What? Sure it isn't tulips?
 
darkbeaver
-1
#29
WalMart destroyed our village and ruined our way of life, I hope they go bust.
 
Curious Cdn
#30
Quote: Originally Posted by B00MerView Post

I'm not sure what the big deal is...

The Walmart Express was designed to go up against CVS, Rx and other small Pharmacy Chain Stores.. they failed. It might be that they have reached a saturation point.



It would be like competing against Shopper Drug Mart in Canada. Shoppers has their niche customer base and Walmart Large Chain stores has theirs.

No sense in trying to mix oil and water.

Shopper'Drug Mart was purchased by Loblaws a year and a bit back. Presidents Choice food products are all over our local store, now and they are part of a much larger entity that is duking it out with Walmart in Canada in all sorts of markets. They are expensive but ours is open 24 Hrs.
 

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