WESTSIDE -- Walmart neighborhood markets will be closing in Decatur, Gravette and Gentry, according to information released by Walmart on Friday.
According to a release on Walmart's website, "after a thorough review of Walmart's nearly 11,600 worldwide stores, the company today announced plans to close 269 stores and clubs, including the company's 102 smallest format stores, Walmart Express, which had been in pilot since 2011."
Doug McMillon, president and CEO of Wal-Mart Stores, Inc., shared some of the factors that led to the decision:
"We conducted a thorough review of our stores and clubs worldwide that took into account a number of factors, including financial performance as well as strategic alignment with long-term plans. In total, the impacted stores represent less than 1 percent of both global square footage and revenue.
"The large majority of U.S. stores closing are Walmart Express stores. While we have learned a lot from this pilot, including a deeper understanding of the everyday needs of our customers, we have decided not to proceed with this offering. We feel we can better serve our customers by focusing on Supercenters and Neighborhood Markets and by investing in e-commerce and services like Pickup.
"Approximately 16,000 associates will be impacted, including around 10,000 in the U.S. Decisions like this one are difficult and we care deeply about the associates who will be impacted. We spent considerable time assessing our stores and clubs and don't take this lightly. Our goal is to help these associates and we will take all appropriate steps to ensure they are treated well.
"...More than 95 percent of the stores closing in the U.S. are within 10 miles on average of another Walmart, and the hope is that these associates will be placed in nearby locations. All affected Walmart U.S. associates will receive 60 days' pay and, if eligible, severance. Walmart will also help associates find their next job opportunity, with a goal of placing as many associates as possible who would like to continue with the company at other nearby locations. Our objective is to help all associates find their next job opportunity, whether with Walmart or somewhere else.
"...We will be giving impacted associates priority for open positions at other nearby stores. We expect that some associates will transfer to another location and others will take severance and pursue other job opportunities. As we've seen with other store closures in the past, the majority of associates who wished to transfer were able to."
Vision for the Future
"We are continuing to grow, and we're making smart choices in managing our portfolio," McMillon wrote. "Even with today's actions, Walmart will continue to invest in its future, with plans to open more than 300 new stores worldwide over the coming year -- in the U.S. Walmart intends to open 50 to 60 Supercenters, 85 to 95 Neighborhood Markets and seven to 10 Sam's Clubs. We will also open 200 to 240 stores internationally.
"We've said that it's more important now than ever that we evaluate our portfolio, and doing so will allow us to build an even stronger Walmart.
"We intend to win in our stores in the U.S. by strengthening the Supercenter format and optimizing Neighborhood Markets. We'll focus on adding capabilities to our supply chain by building out a fulfillment network to create a seamless customer experience. What Walmart can do that no one else can is marry e-commerce with our existing assets to deliver a seamless shopping experience at scale. That is our vision and our mission, and managing our portfolio is essential to accomplishing our goals.
General News on 01/20/2016