Wal-Mart To Shutter More Than 150 US Stores

BENTONVILLE, AR -- Wal-Mart Stores Inc. said it plans to close 269 stores in the U.S. and globally. The closures are part of a previously announced review of the company's portfolio. Walmarts were once prime locations for vending machines and coin-operated amusement equipment.

"Actively managing our portfolio of assets is essential to maintaining a healthy business," said Wal-Mart president and chief executive Doug McMillon. "Closing stores is never an easy decision, but it is necessary to keep the company strong and positioned for the future. It's important to remember that we'll open well more than 300 stores around the world next year. So we are committed to growing, but we are being disciplined about it."

Wal-Mart is expected to close 154 stores in the U.S., including its 102 small format Walmart Express units, which have been in pilot since 2011. Additionally, the company plans to shutter 23 Neighborhood Markets, 12 Supercenters, seven stores in Puerto Rico, six discount centers and four Sam's Clubs. McMillon said that 95% of the stores targeted for closure are within 10 miles of another Wal-Mart outlet.

In total, approximately 16,000 current employees will be impacted by the closures; about 10,000 of those are in the U.S.

"The decision to close stores is difficult and we care about the associates who will be impacted," McMillon said. "We invested considerable time assessing our stores and clubs and don't take this lightly. We are supporting those impacted with extra pay and support, and we will take all appropriate steps to ensure they are treated well."

As McMillon explained, the company will focus on strengthening Supercenters, optimizing Neighborhood Markets, growing its e-commerce business and expanding pickup services. Wal-Mart intends to open 50 to 60 Supercenters and 85 to 95 Neighborhood Markets in fiscal 2017, which begins on Feb. 1. In the same period, Sam's Club plans to open in seven to 10 new locations. Internationally, the company is planning to open between 200 and 240 Walmarts during the coming year.

Wal-Mart is one of the world's largest retailers and largest private employers. It currently operates some 11,600 stores under 72 banners in 28 countries and e-commerce websites in 11 countries.

PHOTO:Wal-Mart president and chief executive Doug McMillon presents at a recent stockholder's meeting. McMillon took the helm of the mega-retailer three years ago, when it was experiencing lackluster profits. The company is now planning a major paring of its stores around the world.