Walmart announced it is closing four stores in Chicago, citing a challenge to generate profits in the city.
Although retail crime has been a factor in some store closing across the United States, as was the case with a number of Walgreens locations in San Francisco, a Walmart spokesperson, in response to a HomePage News query, stated theft and crime were not leading causes for for the decision to close the four stores.
“The simplest explanation is, collectively, our Chicago stores have not been profitable since we opened the first one nearly 17 years ago. These stores lose tens of millions of dollars a year, and their annual losses nearly doubled in the last five years,” the spokesperson stated, adding, “We think closing these stores gives us the best chance to help keep the remaining four locations open.”
The statement reflected Walmart’s announcement, which emphasized that all the Chicago stores have been losing money. Walmart noted it had tried various strategies to improve the business performance of the Chicago locations, including building smaller stores, localizing product assortment and offering services beyond traditional retail. It invested hundreds of millions of dollars in the city, the company maintained, including $70 million in the last couple years to upgrade stores and build two new Walmart Health facilities and a Walmart Academy training center. However, the efforts did not materially improve the fundamental business challenges the stores face, the company asserted.
The four Walmart stores that will close to the public by Sunday, April 16:
- #5781 Chatham Supercenter and its Walmart Health center, and Walmart Academy, 8431 S. Stewart Ave.
- #3166 Kenwood Neighborhood Market, 4720 S. Cottage Grove Ave.
- #5645 Lakeview Neighborhood Market, 2844 N. Broadway St.
- #5646 Little Village Neighborhood Market, 2551 W. Cermak Road
The pharmacies at each location will remain open for up to 30 days after the official store closings, Walmart pointed out.