BENTONVILLE, Ark. – Wal-Mart Stores, Inc. (WMT: NYSE) today announced plans to close 269 stores in the U.S. and globally.
In October 2015, 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 154 locations in the U.S., including the company’s 102 smallest format stores, Walmart Express, which had been in pilot since 2011. Walmart instead will focus on strengthening Supercenters, optimizing Neighborhood Markets, growing the e-commerce business and expanding Pickup services for customers. Also covered in the closures are 23 Neighborhood Markets, 12 Supercenters, seven stores in Puerto Rico, six discount centers, and four Sam’s Clubs.
Internationally, the company is following a disciplined strategy of actively managing its portfolio. Consistent with this strategy, the company is closing 115 stores outside the United States. This includes 60 recently-closed, loss-making stores in Brazil, which represents only 5 percent of sales in that market. The company has already been able to relocate many affected associates in Brazil to other stores. The remaining 55 stores are primarily small, loss-making stores in other Latin American markets. Walmart will disclose more detail about those actions, including the number of stores per market, after completing local associate and community outreach.
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 2017, 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 2016. The remainder of the impact will fall into the first half of fiscal 2017. 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 2016 fourth-quarter and full-year results on Feb. 18. The estimated financial impact is not included in the company’s fiscal 2016 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.
| Walmart Express |
Date closed to public |
Wal-Mart | Date closed to public |
| #2173: 14331 Count Rd. 99, Headland, AL | 1/28/2016 | #2524: 5502 Monterey Hwy, San Jose, CA | 1/28/2016 |
| #2011: 18 Apple Way, Ashford, AL | 1/28/2016 | #2949: 151 E 5th St., Long Beach, CA | 1/28/2016 |
| #2165: 952 E. Lawrence Harris Hwy, Slocomb, AL | 1/28/2016 | #5457: 8400 Edgewater Drive, Oakland, CA | 1/17/2016 |
| #2186: 407 West Washington St., Abbeville, AL | 1/28/2016 | #2960: 4101 Crenshaw Blcd., Los Angeles, CA | 1/17/2016 |
| #2235: 6361 Hwy 72 East Gurley, AL | 1/28/2016 | #3507: 2701 Port Covington Drive, Baltimore, MD | 1/17/2016 |
| #2260: 87395 US Hwy 278, Snead, AL | 1/28/2016 | #3496: 5825 W Hope Ave., Milwaukee, WI | 1/28/2016 |
| #3769: 3530 Cathedral Caverns Hwy, Grant, AL | 1/28/2016 | ||
| #3779: 10188 Hwy 431 South, New Hope, AL | 1/28/2016 | Supercenter | Date closed to public |
| #2498: 720 N Hwy 71, Mansfield, AR | 1/28/2016 | #3814 6525 Glacier Hwy, Juneau, AK | 2/5/2016 |
| #2578: 3500 Mulberry Hwy 64 W, Mulberry, AR | 1/28/2016 | #763: 7201 Aaron Aronov Drive, Fairfield, AL | 1/28/2016 |
| #2601: 814 W. Main, Charleston, AR | 1/28/2016 | #4584: 10400 Highland Rd., Hartland, MI | 1/28/2016 |
| #2669: 1531 E Hwy 64, Coal Hill, AR | 1/28/2016 | #4369: 1010 Martin Luther King Pkwy., Durham, NC | 1/28/2016 |
| #3819: 8848 N Hwy 59, Van Buren, AR | 1/28/2016 | #2837: 4350 N Nellis Blvd., Las Vegas, NV | 1/17/2016 |
| #3878: 5 Hwy 124 West, Damascus, AR | 1/28/2016 | #4342: 22209 Rockside Rd., Bedford, OH | 1/28/2016 |
| #4217: 154 E Roller, Decatur, AR | 1/28/2016 | #2606: 721 US Hwy 321 BYP S Unit, Winnsboro, SC | 1/28/2016 |
| #3032: 905 S Gentry Blvd, Gentry, AR | 1/28/2016 | #883: 14091 FM 490, Raymondville, TX | 1/28/2016 |
| #3033: 800 1st Ave SE, Gravette, AR | 1/28/2016 | #5493: 7480 Padre Island Hwy, Brownsville, TX | 1/28/2016 |
| #3034: 881 W Buchanan, Prairie Grove, AR | 1/28/2016 | #5478: 8201 N FM 620, Austin, TX | 1/28/2016 |
| #3358: 1113 S.R. 20, Interlachen, FL | 1/28/2016 | #597: 7075 FM 1960 Rd W, Houston, TX | 1/28/2016 |
| #4265: 1209 East Wade St., Trenton, FL | 1/28/2016 | #3811: 61 Plaza Drive, Kimball, WV | 1/28/2016 |
| #4267: 15726 SE Hwy 19 Cross City, FL | 1/28/2016 | ||
| #4228: 560 S. Broad St., Ellaville, GA | 1/28/2016 | Neighborhood Market | Date closed to public |
| #4229: 1041 S US Hwy 1, Alma, GA | 1/28/2016 | #5783: 117 Audubon Drive, Maumelle, AR | 1/17/2016 |
| #4234: 155 West Washington Ave., Ashburn, GA | 1/28/2016 | #5642: 2408 Lincoln Ave., Altadena, CA | 1/28/2016 |
| #4251: 398 Barrow Ave SW, Pelham, GA | 1/28/2016 | #5688: 6820 Eastern Ave., Bell Gardens, CA | 1/28/2016 |
| #4254: 907 Marianna Hwy, Donalsonville, GA | 1/28/2016 | #3086: 701 W Cesar E Chavez Ave., Los Angeles, CA | 1/17/2016 |
| #4261: 290 Albany Ave. West, Pearson, GA | 1/28/2016 | #5690: 2045 E Highland Ave., San Bernardino, CA | 1/28/2016 |
| #4263: 142 S. Valdosta Road, Lakeland, GA | 1/28/2016 | #4173 12120 Carson St., Hawaiian Gardens, CA | 1/28/2016 |
| #3065: 3636 N Broadway St., Chicago, IL | 1/17/2016 | #5002, 8196 West Bowles Ave., Littleton, CO | 1/17/2016 |
| #3039: 225 W Chicago Ave., Chicago, IL | 1/17/2016 | #3021: 2253 S Monaco Pkwy., Denver, CO | 1/28/2016 |
| #3369: 900 East Ross Ave., Clearwater, KS | 1/28/2016 | #2303: 333 N Main St., West Hartford, CT | 1/28/2016 |
| #4353: 505 Housatonic St., Burlington, KS | 1/28/2016 | #5856: 601 N West St. STE 100, Wichita, KS | 1/28/2016 |
| #4360: 705 N High School Ave., Columbus, KS | 1/28/2016 | #5860: 9831 E Harry St., Wichita, KS | 1/28/2016 |
| #4361: 1105 East 15th St., Ellsworth, KS | 1/28/2016 | #5873: 4794 E 13th, Wichita, KS | 1/28/2016 |
| #4362: 120 West Rosewood St., Rose Hill, KS | 1/28/2016 | #3097: 8235 SW Apple Way, Portland, OR | 1/17/2016 |
| #4651: 605 Orchard Drive, Hillsboro, KS | 1/28/2016 | #5995: 17711 Jean Way, Lake Oswego, OR | 1/28/2016 |
| #3755: 1445 Old Highway 13, Mamou, LA | 1/28/2016 | #3306 1220 Gallatin Ave., Nashville, TN | 1/28/2016 |
| #4634: 1506 Main St., Colfax, LA | 1/28/2016 | #3171: 2218 Greenville Ave., Dallas (Greenville), TX | 1/28/2016 |
| #3753: 620 North Hwy 26, Lake Arthur, LA | 1/28/2016 | #3451: 2740 Gessner Rd., Houston, TX | 1/28/2016 |
| #3815: 501 West Hwy 90, Iowa, LA | 1/28/2016 | #5985: 2201 West Southlake Blvd., Southlake, TX | 1/28/2016 |
| #3839: 9181 Hwy 67, Clinton, LA | 1/28/2016 | #4126: 1901 S. Texas Ave., Bryan, TX | 1/28/2016 |
| #3849: 920 Avenue G, Kentwood, LA | 1/28/2016 | #5986: 4268 Legacy Drive, Frisco, TX | 1/17/2016 |
| #3879: 1495 Obrie St., Zwolle, LA | 1/28/2016 | #3030: 3850 N 124th St., Wauwatosa, WI | 1/28/2016 |
| #4647: 515 3rd St., Independence, LA | 1/28/2016 | #3031: N88W15559 Main St., Menomonee Falls, WI | 1/28/2016 |
| #4269: 224 E Hwy 76, Anderson, MO | 1/28/2016 | #5698: S14W22605 Coral Drive, Waukesha, WI | 1/28/2016 |
| #4270: 508 N Cliffside Dr., Noel, MO | 1/28/2016 | ||
| #4282: 33597 State Hwy 112, Seligman, MO | 1/28/2016 | Amigo | Date closed to public |
| #4289: 414 N Elm, Clever, MO | 1/28/2016 | #2343: 7B Calle Munoz Rivera, Villalba, PR | 1/28/2016 |
| #3856: 410 2nd St., Belmont, MS | 1/28/2016 | #2347: Bo Salto Arriba, Utuado, PR | 1/28/2016 |
| #3863: 2795 Hwy 371 N, Mantachie, MS | 1/28/2016 | #2342: PR 14, Parque Industrial, Coamo, PR | 1/28/2016 |
| #3865: 420 E Lee St., Sardis, MS | 1/28/2016 | #3667: 1 Ave Monserrate STE 1, Carolina, PR | 1/28/2016 |
| #3866: 28191 Hwy 15, Walnut, MS | 1/28/2016 | #3684: Carr 180 KM 0 HM 2, Salinas, PR | 1/28/2016 |
| #4294: 519 W Veterans Ave., Derma, MS | 1/28/2016 | #3689: Centro Com Rio Grande State, Rio Grande, PR | 1/28/2016 |
| #4296: 7104 Will Robbins Hwy, Nettleton, MS | 1/28/2016 | #3697: Carr 165 KM 4.7, Toa Alta, PR | 1/28/2016 |
| #3211: 509 Dr. Donnie H. Jones Blvd W, Princeton, NC | 1/28/2016 | ||
| #3249: 511 N Mckinley St., Coats, NC | 1/28/2016 | Sam's Club | Date closed to public |
| #5024: 6043 US Hwy 301 S, Four Oaks, NC | 1/28/2016 | #4903: 941 Grinnell St., Fall River, MA | 1/28/2016 |
| #3257: 112 N Main St., Broadway, NC | 1/28/2016 | #6648: 1110 Fall River Ave., Seekonk, MA | 1/28/2016 |
| #5015: 908 E. 4th Ave., Red Springs, NC | 1/28/2016 | #6665: 495 Summit Drive, Waterford, MI | 1/28/2016 |
| #5017: 7670 Clinton Rd., Stedman, NC | 1/28/2016 | #6681: 25 Pace Blvd., Warwick, RI | 1/28/2016 |
| #7207: 1400 B Broad St., Oriental, NC | 1/28/2016 | ||
| #5138: 702 S. Wall St., Benson, NC | 1/28/2016 | ||
| #2500: 945 Monroe St., Carthage, NC | 1/28/2016 | ||
| #2573: 303 S. Goldsboro St., Pikeville, NC | 1/28/2016 | ||
| #6997: 632 W Swannanoa Ave., Liberty, NC | 1/28/2016 | ||
| #3007: 139 N Hwy 49, Richfield, NC | 1/17/2016 | ||
| #3036: 1593 NC Hwy 86 N, Yanceyville, NC | 1/28/2016 | ||
| #3037: 905 SE 2nd St., Snow Hill, NC | 1/28/2016 | ||
| #3080: 182 NC 102 W, Ayden, NC | 1/28/2016 | ||
| #3121: 189 Hickory Tree Rd., Midway, NC | 1/28/2016 | ||
| #3756: 124 E. Columbia St., Okemah, OK | 1/28/2016 | ||
| #4633: 19250 E Hwy 66, Luther, OK | 1/28/2016 | ||
| #2456: 2310 West Main, Prague, OK | 1/28/2016 | ||
| #2462: 1600 West Hwy 66, Stroud, OK | 1/28/2016 | ||
| #3766: 2324 Seran Drive, Wewoka, OK | 1/28/2016 | ||
| #3767: 812 N Clarence Nash Blvd., Watonga, OK | 1/28/2016 | ||
| #1250: 9032 Hwy 14, Gray Court, SC | 1/28/2016 | ||
| #3798: 7013 S Pine St., Pacolet, SC | 1/17/2016 | ||
| #2375: 4718 Nashville Hwy, Chapel Hill, TN | 1/28/2016 | ||
| #2413: 523 N Military St., Loretto, TN | 1/28/2016 | ||
| #4301: 400 North Main St., Cornersville, TN | 1/28/2016 | ||
| #4306: 934 Hwy 79, Dover, TN | 1/28/2016 | ||
| #2345: 721 Dale Evans Drive, Italy, TX | 1/28/2016 | ||
| #2349: 221 S State Hwy 274, Kemp, TX | 1/28/2016 | ||
| #2363: 504 W Pine St., Edgewood, TX | 1/28/2016 | ||
| #2364: 301 Hwy 69 S, Whitewright, TX | 1/28/2016 | ||
| #2410: 122 Commercial Ave., Anson, TX | 1/28/2016 | ||
| #2461: 1003 Telephone Cir., Merkel, TX | 1/28/2016 | ||
| #2779: 5 N 14th St., Haskell, TX | 1/28/2016 | ||
| #2863: 1010 N Main St., Winters, TX | 1/28/2016 | ||
| #3820: 501 N Main, Godley, TX | 1/28/2016 | ||
| #3822: 416 N Third St., Grandview, TX | 1/28/2016 | ||
| #3832: 420 S US 69, Leonard, TX | 1/28/2016 | ||
| #3834: 428 N Dallas St., Palmer, TX | 1/28/2016 | ||
| #4312: 440 E Pine St., Frankston, TX | 1/28/2016 | ||
| #4316: 1787 US Hwy 259 S, Diana, TX | 1/28/2016 | ||
| #4320: 1005 Texas Avenue E, Waskom, TX | 1/28/2016 | ||
| #4327: 870 Taylor St., Hughes Springs, TX | 1/28/2016 | ||
| #4331: 914 North Main St., Lone Star, TX | 1/28/2016 | ||
| #4338: 504 WL Doc Dodson, Naples, TX | 1/28/2016 | ||
| #4343: 12522 Fm 1840, Dekalb, TX | 1/28/2016 | ||
| #4345: 114 Redwater Boulevard West, Maud, TX | 1/28/2016 |
About Walmart
Wal-Mart Stores, Inc. (WMT: NYSE) helps people around the world save money and live better – anytime and anywhere – in retail stores, online, and through their mobile devices. Each week, nearly 260 million customers and members visit our nearly 11,600 stores under 72 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2015 revenue of $485.7 billion, Walmart employs approximately 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmart.
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Forward Looking Statements
This release contains statements as to store closures, store openings, and the financial impact upon diluted earnings per share from continuing operations (EPS) from the store closures in the fourth quarter of fiscal 2016 and the first half of fiscal 2017. Walmart believes such statements are "forward-looking statements" as defined in, and they are intended to enjoy the protection of the safe harbor for forward-looking statements provided by, the Private Securities Litigation Reform Act of 1995, as amended. The actual financial impact of the store closures may differ materially from the EPS estimates provided in the release as a result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors. The risks, uncertainties and factors include the risks relating to Walmart's operations and financial performance discussed in Walmart's most recent annual report on Form 10-K filed with the Securities and Exchange Commission (SEC). You should read this release in conjunction with that annual report on Form 10-K and Walmart's quarterly reports on Form 10-Q and current reports on Form 8-K subsequently filed with the SEC. You should consider all of the risks, uncertainties and other factors identified in those SEC reports carefully when evaluating the forward-looking statements in this release. Walmart cannot assure you that the future results reflected in or implied by any such forward-looking statement will be realized or, even if substantially realized, will have the forecast or expected consequences and effects for or on Walmart's operations or financial performance. Such forward-looking statements are made as of the date of this release, and Walmart undertakes no obligation to update such statements to reflect subsequent events or circumstances.
Source: Wal-Mart Stores, Inc.
