Wal-Mart to shutter 269 stores, 154 of them in the U.S.

NEW YORK -- Wal-Mart is closing 269 stores, more than half of them in the U.S. and another big chunk in its challenging Brazilian market.

See Full Article

The stores being shuttered account for a fraction of the company's 11,000 stores worldwide and less than 1 per cent of its global revenue.

More than 95 per cent of the stores set to be closed in the U.S. are within 10 miles of another Wal-Mart. The Bentonville, Arkansas, company said it is working to ensure that workers are placed in nearby locations.

The store closures will start at the end of the month.

The announcement comes three months after Wal-Mart Stores Inc. CEO Doug McMillon told investors that the world's largest retailer would review its fleet of stores with the goal of becoming more nimble in the face of increased competition from all fronts, including from online rival Amazon.com.

"Actively managing our portfolio of assets is essential to maintaining a healthy business," McMillon said in a statement. "Closing stores is never an easy decision. But it is necessary to keep the company strong and positioned for the future."

Wal-Mart operates 4,500 in the U.S. Its global workforce is 2.2 million, 1.4 million in the U.S. alone.

Wal-Mart has warned that its earnings for the fiscal year starting next month will be down as much as 12 per cent as it invests further in online operations and pours money into improving customers' experience.

Of the closures announced Friday, 154 locations will be in the U.S., including the company's 102 smallest-format stores called Wal-Mart Express, which were opened as a test in 2011.

Wal-Mart Express marked the retailer's first entry into the convenience store arena. The stores are about 12,000 square feet and sell essentials like toothpaste. But the concept never caught on as the stores served the same purpose as Wal-Mart's larger Neighborhood Markets: fill-in trips and prescription pickups.

Also covered in the closures are 23 Neighborhood Markets, 12 supercenters, seven stores in Puerto Rico, six discount stores and four Sam's Clubs.

Wal-Mart will now focus in the U.S. on supercenters, Neighborhood Markets, the e-commerce business and pickup services for shoppers.

The retailer is closing 60 loss-making locations in Brazil, which account for 5 per cent of sales in that market. Wal-Mart, which operated 558 stores in Brazil before the closures, has struggled as the economy there has soured. Its Every Day Low price strategy has also not been able to break against heavy promotions from key rivals.

The remaining 55 stores are spread elsewhere in Latin America.

Wal-Mart said that it's still sticking to its plan announced last year to open 50 to 60 supercenters, 85 to 95 Neighborhood Markets and 7 to 10 Sam's Clubs in the U.S. during the fiscal year that begins Feb. 1. Outside the U.S., Wal-Mart plans to open 200 to 240 stores.

The financial impact of the closures is expected to be 20 cents to 22 cents per diluted earnings per share from continuing operations with about 19 cents to 20 cents expected to affect the current fourth quarter. The company is expected to release fourth quarter and full year results on Feb. 18.

Shares of Wal-Mart Stores Inc. fell $1.12, or 1.7 per cent, to 61.94 in morning trading.



Advertisements

Latest Economic News

  • Feathers fly as chicken shortage shuts KFCs across Britain

    Economic CTV News
    LONDON - Fast-food chain KFC has been forced to close most of its 900 outlets in Britain and Ireland because of a shortage of chicken The company is blaming "teething problems" with its new delivery partner, DHL. Source
  • N.L. unveils 12-year plan for offshore oil, gas development

    Economic CTV News
    ST. JOHN'S, N.L. -- Cash-strapped Newfoundland and Labrador has announced a 12-year plan to speed and enhance development of its offshore oil and gas resources. The province will review regulations and advance tie-back technology to allow more extraction at existing sites with less cost. Source
  • N.L. unveils plan to double oil production by 2030

    Economic CBC News
    The Newfoundland and Labrador government launched a new plan on Monday for growing its oil and gas sector. Highlights of Advance 2030 include doubling offshore oil production by 2030 through reducing development time for projects. Targets for the plan include drilling more than 100 new exploration wells, and tapping into multiple basins to produce more than 650,000 barrels of oil per day from new and existing projects, as well as commercial natural gas production. Source
  • Your auto insurance will be cheaper if you sign up in this month: LowestRates.ca

    Economic CTV News
    Your auto insurance rate is cheaper if you sign up when the weather is warm. That’s the key takeaway from a two-year price analysis by LowestRates.ca. The financial product comparison website found that rates quoted in Ontario were at their lowest between July and October, dipping by as much as six per cent in August 2017 from the annual average. Source
  • Canadian lumber producers buoyant about 2018 with high hopes for duties

    Economic CTV News
    MONTREAL - Softwood lumber duties aren't dampening the spirits of Canadian lumber producers as strong demand from rising U.S. housing starts and tight supply is expected to keep prices high throughout 2018. The number of U.S. Source
  • Markets rise as investors' jitters ease

    Economic CTV News
    SEOUL, Korea, Republic Of - Asian markets were higher on Monday following Wall Street gains last week, as investors' jitters showed signs of easing. Many major markets were closed on holidays. KEEPING SCORE: Japan's Nikkei 225 jumped 2 per cent to 22,149.21. Source
  • European shares drift lower as traders take a breather

    Economic CTV News
    LONDON -- European shares drifted lower Monday as investors paused for breath following a sizeable rally last week. Despite the move lower, there are few signs of the turmoil that gripped stock markets earlier this month. Source
  • European stock markets drift lower, North American markets closed for holidays

    Economic CTV News
    TORONTO - European stock markets drifted lower Monday while the major North American markets were closed for a holiday. In London, the FTSE 100 was down 49.79 points at 7,244.91 with less than an hour left in regular trading. Source
  • Montreal's Oreo cookie plant prepares to shut its doors

    Economic CTV News
    MONTREAL -- There was a time when the whole neighbourhood surrounding an east-end Montreal bakery would smell like baking Oreos. But that era comes to an end this month when snack-maker Mondelez International closes its Montreal factory for good. Source
  • Oilsands tech touted for pipeline capacity boost still years from deployment

    Economic CBC News
    Two years after a blue-ribbon panel called on the Alberta government to encourage partial upgrading of bitumen from the oilsands to enhance value and free up more pipeline room for exports, the idea remains years away from commercialization. Source