Finance & Economics

Walmart Closes 4 Chicago Stores After Years of Losses

Walmart has decided to close half of its stores in Chicago.

Walmart Closes 4 Chicago Stores After Years of Losses

Source: motionarray.com

This information was reported by the media, indicating that one of the reasons for the decision to close the retailer’s outlets was fierce competition. Now four stores of the world-famous retail chain will operate in the third largest city in the USA.

Competition, according to media reports, was not the only factor that influenced the decision to reduce the number of retailer stores in Chicago. Currently, Walmart is actively working to strengthen and expand its presence in the digital space. The company follows the strategy of developing trade on the Internet. This is a promising area of activity since the trend of consumer interest in online shopping shows stable growth.

Walmart, in a statement regarding the quantitative reduction of the chain of stores in Chicago, notes that the simplest explanation for the relevant decision is the fact that these outlets did not bring profit. These stores show financial results in the form of losses in the number of tens of millions of dollars. In addition, over the past five years, annual losses have almost doubled.

The media reports that three stores and the retailer’s supercenter in Chicago will be closed until April 16. In this city, Walmart’s main competitors are Target, Aldi, and the Albertsons Jewell-Osco chain, each of which has dozens of retail establishments.

The retailer tried to improve the efficiency of its operations in Chicago with the help of small stores and localized shopping offers. But these attempts did not bring the desired result. There have been many reports on the Internet that the decrease in the number of the company’s stores in Chicago is associated with a high crime rate and frequent cases of theft. Walmart stated that these circumstances were not the main factors in making the decision, in fact confirming the existence of a problem.

Chicago Mayor Lori Lightfoot reacted negatively to the news about the closure of stores. She called on the retailer to cooperate with the community to repurpose outlets.

Walmart is currently focused on retaining high-income customers. This group of consumers has stepped up purchases with the help of a retailer due to rising inflation. The media note that this factor also influenced the decision to reduce the scale of the presence in Chicago.

John Furner, CEO of Walmart in the United States, said earlier in April that the company had not always been able to retain high-income customers. He also noted that the retailer is launching open-source solutions that are more flexible and more likely to be able to retain customers. The head of the company stated that these solutions, combined with products of excellent quality, reasonable prices, and high value, improve the ability to retain financially secure customers.

Walmart has also recently introduced new versions of its app and website in an attempt to increase its level of competitiveness compared to Amazon. The retailer’s homepage looks elegant and attractive. The website contains a style that resembles an Amazon page.

 

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.