Walmart is closing half of its stores in the big city in the United States, citing large financial losses
Walmart plans to close half of its Chicago stores, citing poor performance at each location.
There are eight stores in Chicago, and the company will close four of them.
Three of the locations are located in primarily minority-dominated areas of Chicago in the South and West Side neighborhoods and have long struggled with access to grocery and retail stores, according to CNN.
Walmart said in a blog post that the four stores that are closing are “losing tens of millions of dollars a year”[ads1]; and annual losses have doubled in the past five years.
“Unfortunately, these efforts have not significantly improved the fundamental business challenges facing our stores,” the company said.
The news of the closing of the Chicago Walmart comes just weeks after the company closed its last remaining stores in Portland, Oregon.
In that case, Walmart also cited an inability to meet financial expectations, but the closings also came after Walmart CEO Doug McMillion said record retail theft hurt the company’s financial performance last year.
Walmart plans to close stores in 12 states and Washington DC.
Workers at the affected Chicago stores will be able to transfer to other Walmart stores, and the company said it would work with city government leaders to find a way to reuse the space previously occupied by the stores.
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