Friday, February 15, 2016
Walmart Closing Recently Opened Loretto Store
US retailing giant Walmart announced Friday it is shuttering 269 stores inside and outside the United States, with Latin America the hardest-hit foreign market.
Of the total, 60 of the stores being closed are in Brazil, the once-promising emerging giant that has sunk into recession.
In the United States the company is pulling the plug on its Walmart Express convenience store program launched in 2011.
Out of a total 154 locations being shut down in the United States, 102 are Walmart Express outlets. One of which is located in Loretto, Tennessee.
The company said it will focus on strengthening its largest stores, the Supercenters, and its Neighborhood Markets, though some stores in those formats are also on the closure list.
The stores being shuttered account for a fraction of the company's 11,000 stores worldwide and less than 1 percent of its global revenue.
More than 95 percent of the stores set to be closed in the U.S. are within 10 miles of another Walmart. 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 company, which has 11,600 stores worldwide, said it will continue to open outlets in strategic areas.
"Closing stores is never an easy decision, but it is necessary to keep the company strong and positioned for the future," said president and chief executive Doug McMillon in a statement.
"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."
Inside the United States it plans to open 50-60 more Supercenters and 85-95 Neighborhood Markets by early 2017.
Loretto Mayor Jesse Turner made the following statement.
It came as a shock that WalMart is closing the Loretto Neighborhood Market. Only a little over a year ago did the store open after much anticipation. The store proved to be a profitable one exceeding the sales goals set by WalMart Corporate. The Loretto area showed we have a need for a retailer such as this and we will work to fill the looming gap. However, it saddens me most for the employees whom will either be transferred to other stores or offered a severance package.
Commissioner Chris Jackson who represents Loretto on the county commission released the following statement regarding the closure of the Loretto Walmart:
"I am very disappointed to hear the news that the Loretto Walmart will be closing later this month. Walmart's corporate board made this decision despite the Loretto store being one of the more profitable neighborhood market stores in the region. The worst part of the entire situation is the employees that will be affected by the closure. Many left other positions to come to work for Walmart and will now be out of a job. Our prayers are with them during this tough time. Our local economy will also see an impact from this closure as sales has been up substantially since Walmart came to our community. More than ever, this decision by Walmart reinforces why we should all support and patronage local hometown businesses who invest in our community and actually care about our people over large corporations who are only concerned with maximizing profits at the expense of their employees and small communities like ours."
