BENTONVILLE, Ark. (News release) – Wal-Mart Stores, Inc. (WMT: NYSE) today announced plans to close 11 stores in the Southwest
Closing locations on the list:
Walmart stores (all closing Jan. 28 2018)
720 N Hwy 71, Mansfield, AR
3500 Mulberry Hwy 64 W, Mulberry, AR
814 W. Main, Charleston, KS
1531 E Hwy 64, Coal Hill, KS
5 Hwy 124 West, Damascus, KS
1845 N Hwy 81, Duncan, OK
1002 NW Sheridan, Lawton, OK
154 E Roller, Decatur, TX
905 S Gentry Blvd, Gentry, TX
800 1st Ave SE, Gravette, TX
881 W Buchanan, Prairie Grove, TX
117 Audubon Drive, Maumelle, TX
In August 2017 the company said an active review of the portfolio was underway to ensure assets were aligned with strategy. Today’s action follows a thorough review of Walmart’s nearly 11,600 worldwide stores that took into account a number of factors, including financial performance as well as strategic alignment with long-term plans. In total, the impacted stores represent less than 1 percent of both global square footage and revenue.
“Actively managing our portfolio of assets is essential to maintaining a healthy business,” said Doug McMillon, president and CEO, Wal-Mart Stores, Inc. “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.”
Store Closings/Openings
As part of today’s action, the company will close 11 low volume locations in the U.S. Walmart instead will focus on strengthening Supercenters, growing the e-commerce business and expanding Pickup services for customers.
Walmart will continue to invest in its future, with plans to open stores worldwide in the coming fiscal year. Domestically, Walmart intends to open 50 to 60 Supercenters and 85 to 95 Neighborhood Markets in Fiscal 2018, which begins Feb. 1. In the same period, Sam’s Club plans to open in seven to 10 new locations. Internationally, Walmart intends to open between 200 and 240 stores during the coming year.
Financial Impact
The financial impact of these closures is estimated to be approximately $0.20 to $0.22 of diluted earnings per share from continuing operations, with approximately $0.19 to $0.20 expected to impact the fourth quarter of fiscal 2017. The remainder of the impact will fall into the first half of fiscal 2018. Approximately 75 percent of the impact relates to U.S. closings and the remaining portion involves Walmart International, with a large majority of the international impact relating to the closures in Brazil. Walmart will report its fiscal 2017 fourth-quarter and full-year results on Feb. 18. The estimated financial impact is not included in the company’s fiscal 2017 fourth quarter and full year earnings guidance.
Store Associates and Transition Assistance
In total, approximately 16,000 associates will be impacted by the decision, about 10,000 of them in the U.S. More than 95 percent of the closed stores in the U.S. are within 10 miles on average of another Walmart, and the hope is that these associates will be placed in nearby locations. Where that isn’t possible, the company will provide 60 days of pay and, if eligible, severance, as well as resume and interview skills training. Whether with Walmart or elsewhere, the company’s objective is to help all associates find their next job opportunity.
“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.”
Walmart will continue to serve the shopping needs of U.S. customers in the markets affected by today’s announcement through other Walmart locations and online at www.walmart.com. Customers can find the nearest Walmart store through the store locator function on the company’s website.