Many companies have found it difficult to continue operating brick-and-mortar locations in recent years. The rise of theft, employee wages, and low foot traffic has caused many popular businesses to focus more on their online retail operations.
Walmart has recently closed several stores due to an ongoing issue retaining in-person sales, laying off thousands of employees in the process.
Large Retailers Turning to Online Sales
Many legacy retailers, such as Macy’s, JCPenney, Express, and Lululemon, have been faltering at their in-person locations. Stand-alone stores and large malls have all seen a reduction in foot traffic in recent years.
The Covid-19 pandemic seemed to wrap up shopping once and for all. Since then, large stores have shuttered their doors and focused more on online sales.
Grocery Shopping Has Also Turned to the Online Realm
Today, more than one-third of all Americans purchase groceries online and have them delivered to their front doors.
Consumer shopping behavior has changed drastically in recent years. Companies with a strong online presence and quick delivery options thrive the most. More than 230 million people pay for Amazon Prime worldwide, showing other retailers that customers desire clickable buying options.
Walmart Recently Shuttered Clinic Operations
In addition to 24 Walmart locations closed in 2023, the company shuttered 51 healthcare centers nationwide.
The company opened clinics in several states in 2020 but failed to make the new venture profitable in a post-Covid world. The closures left a massive gap in healthcare access in many rural and remote communities.
Many Underperforming Stores Located in California
In addition to multiple locations closing in Illinois and Washington D.C., four particularly underperforming stores were in sunny California.
Locations in San Diego, El Cajon, West Covina, and Granite Bay were all shut down due to a lack of sales and operational issues.
More Discount Stores Closing in California
The demographic of shoppers is shifting dramatically in the Golden State. Places like Walmart and 99 Cent stores are losing in popularity.
Instead, pricier retailers with exotic food choices, like Whole Foods and Erewhon, are thriving in Los Angeles, San Diego, and San Francisco.
Walmart Execs Make a Statement
When questioned by the press, a company spokesperson announced, “We determined there is not a sustainable business model for us to continue.”
The store closures clarify that the company doesn’t find in-person shopping profitable in the digital age.
Unknown How Many Team Members Will Be Let Go
The company has not announced how many team members will lose their jobs or whether some will transfer to new locations or shipment facilities.
Each store has around 350 employees at each store, and many of them rely on Walmart as their main source of income.
Columbus, Ohio, Lost A Location
A location of the store in Columbus, Ohio, was announced to be closed in February of this year.
Execs noted that the store “failed to meet financial expectations.” The store was located on High Street, and the team ultimately decided to close the supercenter permanently despite serving the community for decades.
Auctioning Off Large Items
This week, Walmart plans to offload some of the bigger merchandise through a liquidation auction.
Oftentimes, auctions are the only way for companies to recoup lost money, even if they need to take a loss on expensive items. The alternative of shipping thousands of items to a new location is costly and not worth it.
Items That Customers Can Expect To See at Auction
The store is completely wiping out the inventory from the location, along with some items that keep the store running.
Anyone who visits the liquidation auction can expect to see large items like flat-screen TVs used for security in the store, along with anti-theft systems, cash registers, and stock carts.
Grafe Auction Will Hold Sales Through Friday
The company facilitating the auction, Grafe Auction, will hold the sale through Friday this week.
The company facilitating the auction, Grafe Auction, will hold the sale through Friday this week.
