Since 2020, consumers have grown accustomed to store closings. Retailers like Lord&Taylor and Stein Mart were forced to shut down entirely during the COVID pandemic, while others could only survive by drastically cutting back on their number of stores.
The pandemic isn’t the only reason businesses close certain stores. So much so that even the biggest retail chains in the nation are not exempt. Walmart will have more than 5,000 stores in the US as of 2022, but not all of them will be open until the end of the year.
Are Walmart stores closing? The superstore recently announced that it would be closing some of its locations in the 2nd quarter of 2022. Find out which Walmart stores will be closing and whether you should worry about the management’s move.
Are Walmart Stores Closing in 2023?
Yes. Walmart is closing stores for various reasons. Brian Little, a spokesman for Walmart, told the Louisville Courtier Journal on March 23 that the company will close some stores in 2022 to focus more on e-commerce.
A recent look at the company’s income shows that more customers now shop online instead of going to Walmart stores. This is why Walmart is changing its business practices to support online shopping and keep its services fast, efficient, and reliable.
“These are never easy decisions, but actively managing our portfolio is essential to maintaining a healthy business. This is done on a case-by-case basis and only after a careful and thorough review.”
Brian Little
Why Is Walmart Closing Stores Suddenly?
The first explanation is that the company is altering its business strategy to appeal to internet consumers more. The corporation is turning its attention to the digital sphere considering clients are making more purchases online than ever before.
After hearing the news, many people wonder whether Walmart is going out of business, but it’s simply a business transformation.
By 2022, Walmart wants to close a few of its physical locations. In order to deliver an effective, top-notch service that satisfies the needs of these new customers, it will invest the money in optimizing its website and app, among other things.
Customers’ increased online demands and the continued expansion of online behemoths like Amazon are altering the retail scene. By ensuring that its services stay effective, quick, and dependable, Walmart is doing what it needs to do to support such an industry transformation.
However, that is not the only explanation for the retail giant’s abrupt movements in business. Other possibilities include:
Requirements for Cleaning and Disinfecting
The COVID-19 pandemic has lingered for a little close to three years and has claimed numerous lives. But, several supermarkets ensure that their clients may shop by offering security measures that let people buy goods in a secure and hygienic setting.
The business goes above and beyond by closing various sites for around 40 hours so they can be thoroughly sterilized, while the grocery stores could close up shop and clean off at night before opening early the following day.
More locations around the US closed in 2021 due to growing worries resulting from local outbreaks, despite increased attempts to combat the virus and relaxation of other safety regulations. Additionally, some establishments have reopened not long after, while others are still closed for thorough cleaning.
Poor Performance
The company stated in 2016 that they would concentrate on their new Neighborhood Market format in order to compete with other stores of the same structure. This more compact location was chosen since it is both nearby and convenient.
However, by late 2017, it has decided to close all the new locations due to lack of appeal, a loss of market share, and primarily subpar performance rather than expanding its new business.
They did not specifically describe what distinguishes a store that succeeds poorly from a store that works well enough to remain open despite declaring they would focus on other advancements to their brand.
Bad Image
The company has a reputation as a retail behemoth, yet their competitive image is precisely what prevents them from continuing to be successful.
In fact, despite having a reputation for low prices, subpar customer service, undertrained staff, and a difficult-to-navigate store, they have faced numerous brand identity issues in recent years.
All of these are the things people think of when they hear of this discount superstore. So, why would anyone pick this place to shop at when it has such a bad name.
Supply Issues
Anyone who has been to Walmart recently has felt like they didn’t have enough products to meet customer needs. This happened for a few reasons.
Some experts say that the company hasn’t decided how many of each product to keep in stock. This means that you may have to place a special order or find something else at a different store.
Walmart made a big deal about its holiday products, but it didn’t have or didn’t have enough of its everyday products in its stores.
When customers realize they can’t get what they want, there’s no reason to keep returning to this store, especially when there are online options aside from other physical stores they can try.
Lower Profit Because Of Increased Tariffs
In 2018, the US government imposed new tariffs on China’s goods. As a result, the company had to pay duties of 25% on most goods coming in.
This duty has already hurt hundreds of businesses all over the country in terrible ways. It made people question whether or not the store could keep being called a discount superstore.
Are All Walmart Stores Closing?
So, will all Walmart stores close this and in the coming years? No, but the company decided to shut down some places. Some of the stores near you may choose to shut down for good. If this happens, you can visit another store nearby or use the company’s website to shop from home.
It is also possible that your local store will be closed for three days so that it can be deep cleaned and sanitized. Your best bet is to call the store near you to see if they are operational before you drive by.
Which Walmart Stores Are Closing In 2022?
Several Walmart stores in the US were set to close by the end of May 2022. This affected a lot of cities all over the country. Regional newspapers have said that the company is closing down some “underperforming” locations because of their past and present financial performance.
But, Walmart spokesman Brian Little recently told media that the upcoming closings are not part of a more extensive series of closing across the country.
Read on to find out which Walmart locations shut down for good in 2022.
Louisville, Kentucky
Closing Date: April 2022
Walmart’s store on Raggard Road in Louisville, Kentucky, has been dark for a while now. The Louisville Courier Journal says that this location opened in March 2008 and had a little more than 300 employees when it closed 14 years later.
Forest Park, Ohio
Closing Date: April 2022
In March, the Cincinnati Enquirer said that Walmart was going to close one of its stores in the Greater Cincinnati area in a month. Also, on April 22, the Walmart on Smiley Avenue in Forest Park, Ohio, closed for good.
Bellevue, Washington
Closing Date: April 2022
The Puget Sound Business Journal said at the beginning of April that another Walmart would close later in the month. The company also closed its store at the Marketplace at Factoria in Bellevue, Washington, on April 22, the newspaper said.
After opening in 2012, this place had only been around for ten years.
Guilford, Connecticut
Closing Date: May 2022
A Walmart store on Boston Post Road in Guilford, Connecticut, closed on May 20, 2022. In a Facebook post on April 19, the Town of Guilford told people about the news and said the company said the closure was “mostly due to underperformance.”
Mayfield Heights, Ohio
Closing Date: May 2022
On May 20, 2022, the retail giant closed a store on Mayfield Road in Mayfield Heights, Ohio. This was the second Ohio Walmart to close that spring, and this one was in the Cleveland area. Mayor Anthony DiCicco said he doesn’t know what a Walmart store that isn’t doing well means, but that the city’s Walmart is in what he thinks is a good shopping center.
Is Walmart In Decline?
Walmart sees a mixed picture, which is affected by how much money people make and how they feel about the future. But the country’s most prominent store said shoppers have been more careful with their money in the last quarter.
Still, closing stores like Walmart does have nothing to do with it.
Customers left stores and the store’s website with fewer items than they came with. As gas and food prices increased, more of them skipped buying new clothes and other general goods.
Chief Financial Officer Brett Biggs told CNBC that some people switched to cheaper brands or smaller sizes, like half-gallons of milk and the store brand of lunch meat, instead of a more expensive brand name.
On the other hand, he said, some customers have spent a lot of money on new patio furniture or have been eager to get their hands on the latest and greatest gaming console.
Conclusion
For a big company like Walmart, closing stores is a bit of an odd thing to do. Many business experts, who thought the company would open more stores soon, are surprised by this news.
Even though closing physical stores may seem like a bad thing, the store makes up for it with online shopping strategies that focus on efficient, fast, and reliable service. On Walmart.com, customers always have the same great time shopping.