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Walmart has officially announced it will be closing four poor-performing stores in Chicago. Three of the locations that will be closing are located in the South and West side neighborhoods, where more people have struggled with buying groceries and sales access. One other business is on Chicago’s north side which is predominantly white and more wealthy so better sales.
Why close these locations?
The company offers all former store associates in these closing stores the option to transfer to another Walmart location. Managers from the surrounding stores will be in each closing store to help associates find their next opportunity. Meanwhile, the reason behind the closing of these stores is that Chicago’s stores have not been profitable since first every store was opened around 17 years ago. Losing millions of dollars a year and annual losses doubled in just the last five years, according to the company.
With the four Chicago businesses closing, equally the four stores left in Chicago will face the same difficulties and challenges. Furthermore, the decision to close these four stores gives the best chance to save them and stay open long enough to serve the community. Even with the company trying new strategies, such as building smaller buildings, and offering more retail services, there has still been no improvement in the stores’ performance.
The Walmart stores closing are:
- 5781 Chatham Supercenter, the Walmart Health Center.
- The Walmart Academy, 8431 South Stewart Avenue.
- 3166 Kenwood Neighborhood Market, 4720 South Cottage Grove Avenue.
- 5645 Lakeview Neighborhood Market, 2844 North Broadway Street.
- 5646 Little Village Neighborhood Market, 2551 West Cermak Road.
How will this impact that community?
Consequently, the community has been impacted by these shops closing, considering that three of these stores are located in an area that has limited options for grocery stores and community pharmacies. Due to Walmart’s four stores closing in Chicago, the community is left with few options to find affordable and fresh produce within the distance. The residents are frustrated with the loss of this store, they plan to voice their frustrations in a rally at Walmart company.
By Amirah Lee
Sources:
ABC 7: Walmart announces 4 Chicago store closings
Walmart Inc: Walmart announces closure of four Chicago stores.
Featured and Top Image Courtesy of Mike Mozart Flickr Page – Creative Commons License