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The Real Reason Walmart Is Closing Down Stores

The Real Reason Walmart Is Closing Down Stores

For a long time, Walmart seemed like the unstoppable
juggernaut of the retail world, but things haven’t been looking so great for the retail
giant. In fact, they just announced another round
of closures. So what’s going on with Walmart, and will
it get better or worse? In 2016, Walmart purchased and began
aggressively expanding their online presence. Why? Because Amazon, that’s why. The online retail giant was figuratively eating
Walmart’s lunch, so Walmart had to shift gears from a brick-and-mortar retail word to a digital
one. CEO Doug McMillon told Business Insider that
the resulting downturn in profits as they refocused their business was, quote, “planned
and expected.” But it hasn’t been all sunshine and roses. Industry experts say that Walmart has had
issues figuring out how much to keep in stock to satisfy both online and in-store orders,
often resulting in physical locations being either overstocked with unwanted merchandise
or understocked on key goods. And considering the whole point of going to
Walmart is to get all the vital supplies in one place, not having those items when customers
need them is a big problem. “Amazon is now worth more than the nation’s
biggest retailer.” “You know why? ‘Cause they sell sex toys, and Walmart can’t,
or won’t. Nobody else will tell you this, but that’s
the reason!” “Okay.” According to Forbes, Walmart’s image has been
a major problem for them. Sure, they’re known for low prices, but they’re
also known for leaning on small retailers, dirty, messy, and disorganized stores, a complete
lack of training for employees, management that are out of touch, and some of the worst
customer service this side of S-Mart. “Lady, I’m afraid I’m going to have to ask
you to leave the store.” “Who the hell are you?” “Name’s Ash. Housewares.” In 2018, the U.S. government and President
Donald Trump leveled a ton of tariffs on goods coming into the country from China. Hundreds of affected businesses appealed to
the government for relief, but it’s arguably Walmart that has been affected the most, as
they import a slew of goods from Asia. According to the Washington Examiner, Walmart
responded by absorbing as much of the cost as possible in order to keep their prices
relatively level. That’s good news for consumers, but bad news
for Walmart’s bottom line: with supply costs up 3.2 percent, their profit margin had declined
severely. With so many of their brick-and-mortar locations
struggling, Walmart has turned to rebranding and reformatting in order to try to find a
more profitable business model. In 2011, for instance, they rolled out Walmart
Express stores in urban markets across America. By 2014, though, the experiment was over,
and those locations had instead been replaced by a new brand: Neighborhood Markets. Designed to compete with chains like Trader
Joe’s, Neighborhood Markets primarily sell groceries. But while Walmart had close to 700 Neighborhood
Markets locations by 2019, they had also already closed more than 130 of them, with more closures
announced. Maybe it will work out in the long run, but
considering the massive costs associated with opening and closing store locations, trial
and error seems like an expensive way to do business. Walmart isn’t just closing down stores, though. Another metric of how much they are struggling
is the fact that they aren’t opening many new stores either. According to Yahoo! Finance, Walmart had more than 3,500 supercenters
in the U.S. at the beginning of 2019. Only 15 of those, though, opened in 2018,
and only ten new stores were planned for 2019. It seems that Walmart has reached market saturation,
as every location that can support a store seemingly has one already. It’s no wonder, then, that Walmart is reportedly
focusing on overhauling, or simply closing, their existing locations. And they are also looking for different ways
to expand. According to CNBC, Walmart has been buying
up brands like Flipkart, Bare Necessities, and Eloquii as well as partnering with corporations
like Advance Auto Parts, MGM, and Humana. It’s all part of a push to produce products
in house to reduce costs, just like their store closings. It’s a tough call, but you know what they
say: “The hardest choices require the strongest
wills.” Check out one of our newest videos right here! Plus, even more Mashed videos about your favorite
stores are coming soon. Subscribe to our YouTube channel and hit the
bell so you don’t miss a single one.

Reader Comments

  1. Yeah, so, it might help if you hire people, who, when asked for help with something by a customer, the response isn't "no hablo ingles"……it happened to me and I was livid. But hey! They should make $15 p/hour!

  2. It a Shame Walmart came end Close up. The mom and pop stores. Now the closing.To bad they can't. Sue them. For what they did to the town.

  3. This is obviously a labor union-funded hit piece on Walmart. You should have disclosed this fact.

    I've shopped in Walmart for over 20 years. I don't like the check out lines, but the longest line I ever saw was maybe 15 minutes. HOUR waits are the norm? PLLEEEAAAASSSSSSSEEEEEE! People wouldn't shop there if the lines were really 1 hour long. Or even half that.

    You want to pay more? There are LOTS of options. To each his own.

    Amazon is a great competitor, keeping prices down. Walmart is adjusting with its own excellent online service — free shipping on orders over $35. Amazon shipping is free ONLY IF you pay a $119 annual "Prime" fee (which I do!).

    For those of you who blithely claim that Walmart is following K-Mart into oblivion, perhaps a look at the Walmart sales history for the last 13 years would be informative. Its U.S. sales took a minor downturn in the Great Recession and again in 2014, but the biggest annual drop was a paltry 1.5%. In FY 2019 it's up 3.7%.

  4. I just read the last few comments so I'm going to say the reason I should give and the reason that's the real reason, don't exactly fit in the same box….Oh well…Yes indeed,a lot of the Walmart stores are devoid of products on the shelves and because I'm not fond of having a 17 yr old shopper choose my replacements for out of stock items for an online grocery delivery,as Walmart my guess, don't give shoppers the opportunity to write what they'd prefer for out of stock items because there's not no place to indicate anything,when using their shopping app or website. By doing this,Walmart believes they have conned us into settling for a not even close to our ordered item ,therefore making more money off of us. Walmart could easily use the perfect online delivery platform that Instacart uses,allowing the customer to choose their own replacement per item,but they do not. It's all about making more money. No doubt the same reason why you cannot even use a Walmart gift card to pay for your Walmart groceries online. My guess,they've already gotten a person's money forthe gift card and know you'll use additional money to place your order,using the GC on a future in-store purchase. Can you say greed? If you take the top 10 corporations or huge names in business and add their yearly sales together,it still wouldn't add up to what Walmart pulls in. It is something like $40+ million every 10 minutes,lol(appalled lol)
    Folks we are headed for some very bad times. There's going to be such a reduction in the amount of food that IF we can actually get our hands on,will pay an astronomical amount of money for. We have exactly less than a year to get our acts together,as to be able to eat. I will save you the mind blowing,confusing details of what,but there's something going on currently that will mimic…research this Maunder Minimum in its ability to delete huge numbers of the population. Look around you OPEN YOUR EYES….DO NOT FEAR….JUST PREPARE!
    Now back to Walmart….We have to ask the question….Why are they not stocking their stores? I live exactly 3 miles from a 24hr Super Center and in the last 6 months my order went from $150 every 2 weeks to $65 on my last in-store visit. 3/4's of my grocery list was out of stock.
    Is Walmart stockpiling for the elite? I know it's not for us.
    The entire nation,every country is unable to currently grow their crops. Either because of the floods or droughts. In the Maunder Minimum,United States farmers had to replant their crops for the upteenth time. On June 12th they replanted once more because EVERY day in the month of May had frost and killed the crops and a frost in August in AUGUST killed the crops once more. This is what is occuring currently all across the US and World. It snowed last month in Colorado. Snowed in Hawaii this past winter,also in the desert and in parts of CA where it never snows. Also,because of what we are experiencing,there will also be an increase in natural disasters. You will see or hear about many many Hurricanes,Tornados,Tsunamis,Earthquakes and Volcanic action daily.
    Please do yourself the favor of educating yourself. If even 1 or 2 people have gotten this far in my comment and something resonates,I will have done my job. It is our responsibility as kind hearted human beings to help each other. When God said to love one another as I have loved you,it wasn't meant to mean love those that make it easy for us to love. God wants us to love our enemies. It's easy to love those that treat us well and love us in return. The Left has intentionally for a minimum of 1/2 a Century divided us and the reason is so there would never be an uprising against government and so we wouldn't come together and help each other in hard times. This has to stop as we will need each other immensely for what we are about to face.
    Now that this is already much too long….you may want to watch a video or 2 pertaining to Walmart closings as they turn into Fema Camps where we will be chipped and vaccinated with more heavy metals,in their effort to control us.

  5. Worked at Sears in 70s and 80s. Employees joked back then that the company survived in spite of the managment. Good-by Walmart.

  6. Walmart ,wont ever go out of business.. anything they'll do like Amazon,and just go to internet.

  7. If I were younger and looking for a job I might take a look at Wal-Mart because every time I go there I see 4 or 5 employees just hanging out together and in Texanese shootin' the breeze so sounds like an easy and fun job anyway.

  8. Now the real reason why these wal marts and sams club are closing. Every one of these stores we’re doing massive business when they closed. Matter fact there so rich that money doesn’t matter. The real reason there closing is to make more fema camps, which are really concentration camps for the new one world order to kill Christians and eliminate them from society. Sound shocking?? Welcome to the synagogue of satan, you see that yellow flower out from the wal mart logo??? You can make a hexagram out of it very easy. Lesser magic showing you in plain sight the intentions of the fake Jewish messiah to come upon this earth. Better wake up people!! There even calling them re-education centers, that’s what Hitler called the concentration camps, how plainly in your face and sick is that???

  9. I order onlne now from walmart,but their meat prices are as high as Krogers now,so i'm forced to buy 90% of my meat from Aldi's they have cashiers so your not forced to cash yourself out.

  10. Wal-Mart and Amazon has destroyed American job market. Trump's tariffs are a nessasary evil. We need to purchase goods made in our country we have been outsourced for Chinese cheap labor. The bottom line is you can not drive an economy without manufacturing your own goods. Walmart and Amazon has seen the demise of your malls. Sears, JC Penney and Macy's along with many others who yes sold better goods but they to outsourced to China. We are all pawns in a sick game and now they want to legalize pot. Wake up people use your brain we have all been led to the slaughter of our once great nation.

  11. Safeway prices are lower than
    I’m not going to buy anything in the Veggie Department at Walmart because of the Huge Cockroaches hidden among vegetables!

  12. The real reason is that FEMA is converting WallMarts to disaster relief centers. They will become de facto prisons for millions of displaced Americans. FEMA has 16,000 guillotines and 4 billion hollow point bullets just waiting for those people who agree to go to a converted WallMart relief center. Thing about the devil, you must agree to go.

  13. Walmart at Westbrook branch should be closed due to stinky washrooms and sanitation problems consistently.

  14. As a former Walmartion. The company runs everything via computers..will be the first company to repkace hunan labor with army of robots

  15. What a lot of people don't know is that Wal-Mart is not owned by the Walton family anymore and the Waltons only own 47% of the stock and get a yearly pension.It's
    Men and maybe a few woman, who knows for sure, who have undoubtedly never worked in a retail store is running what used to be the greatest place to work. rest
    A computer system is in place to work out scheduled shifts, peak hours, and not having the brains, it took to develop, it hasn't a heart, so if your child is sick, or a loved one dies and you have to leave early or you call in sick, you get points, reach 9 and you're history.
    No phones at the registers to call for price checks, no one in the department's to help customer's, and my favorite one! In the Bellingham Washington store, they stopped using plastic bags, going to paper bags which the customer has to purchase. People greeters that used to hand out yellow smiley faces, gone! And people were allowed to walk out with carts full of merchandise without bags. Theft climbed so fast that our store who once was a great place to work, has gone through more store mangers in the past 9 year's then, any time before. The associates are blamed for the theft by not getting bonuses that used to be handed out regularly.
    But in my eyes, things took a big nose dive when they took layaway out. I worked our layaway for almost 10 years, the excuse that we were losing money, was bullcrap! I did the books, we didn't lose anywhere near what was stated.
    These conglomerate dumbasses have no clue, they're just interested in the oh mighty buck. And Wal-Mart and the once friendly associates are the ones paying dearly.

  16. It seems to me that the place you would want employees, is the registers. Isn’t that where the money is taken in?

  17. i don't know much of walmart but iv'e worked there and the employees are good people but some managers are not good but not all.i like helping people that's why i applied there.

  18. Walmart wouldn't do most it's business with USA manufacturers, telling them to have their product made overseas then it would do business. It crushed American business. It treated paid employees cheaply so that they had to go to welfare for help. Until they join America…………….don't expect them to thrive in the New America.

  19. customer service became the worst in history of America once Sam Walton died and walmart became ran by a corporate greed led family instead of its original founder who believed in customer service and beating other stores prices…also besides not having customer service or enough employees to keep people from waiting in line forever ….they also no longer have lowest prices like they did when they were growing……they now are more expensive than every other grocery store chain in the area of the Mahoning Valley I live in Ohio… expects you to pay more for your groceries than Aldi, Giant Eagle, Marc's and others in my area and they expect you to pay more money while also ringing up and bagging your own groceries and forcing people to use bags so thin that most people have to triple bag their heavy items just to be able to carry them to their car…..why would we keep shopping at a store that we pay more money and have to work for them by ringing up and bagging our own groceries …I mean why do that when we can sve money…and live better going to cheaper stores that are smaller chains and have American principles and they have great customer service and wait on us ring up our groceries ….funny how stores can sell items cheaper than walmart and still afford to hire cashiers and baggers while walmart claims they are not making enough profit to hire more cashiers…all walmarts need to be burned down nation wide and ran out of America for how offensive and racist the owners now are…they are nothing like Sam Walton who was a military veteran….the current owners are an embarrassment to Americans

  20. Walmart sell's nothing but junk, what happens when you strip the top-soil, it becomes barren and this is exactly what they did to the shopping industry making you think you were getting such great deals. They sold you nothing but crap, so are you happy now?

  21. They're closing Wal-Mart stores down because the buildings are being used to house all the illegal immigrants.

  22. That is not the “real” reason for closing down stores. Walmart is to strong of a company to get closed down because of Amazon. 2010-2015 Walmart closed 269 stores worldwide because Walmart partnered up with The Department Of Homeland Security. Now the closed stores are mini military bases.

  23. This is what happens when you have a President who thinks that STRONG-ARM tactics in a MODERN-DAY business environment will work…Look at the trends fellow AMERICANS…American mom and pop stores have all but VANISHED…The big boys get the tax breaks…At the end WE ALL SUFFER…You wanna make AMERICA GREAT AGAIN? Start investing in the middle class PERIOD…

  24. To example store saturation, I live in a 100 sqm town, there are 3 full super centers and a Sam's, there is only one of any other competing type store in the area and they do fine, so 3 just seems like over kill

  25. Janet Napoleano said WALMART joined forced with HOMELaND SECURITY. that is interestingly EVIL. Do NOT TRuST FEMA = fkg EVIL MONsTERs Association

  26. They let all the rift raff hang around there parking lots and beg for money, and camp out there. I don't feel safe exiting the store.

  27. It's bad when one needs to take 1/2 a Xanax before going to Walmart. Then, once there, mostly self checkouts or long lines. I have absolutely no issue with shopping Walmart Online but I am loathe to physically go to the store. Groceries not well stocked, veggies with fruit flies and knats, not enough staff, rude customers …. ugh!

  28. What Walmart Did:

  29. Going the way of Target: unclean, hardly any staff, no smiles, not even responding to Amber Alerts, empty shelves, food quality, ect.
    We do have a Wegmans here. I can attest to the quality of fruit and veggies. The best of all stores. Prices may be higher, but look at the size and choices. The only store in the 15 to 20 miles radius to carry rhubarb, cotton candy grapes, large, ripe pineapples, and more. Check out the self serve take out section. No, I don’t work for them, I am retired. Just comparing. My town has 2(two) Walmart’s . Do not want to lose either.
    Did I hear Kohl’s is in trouble, too? Sigh.

  30. I drove for walmart 22 years one problem i saw was they opened too many stores too close together i would deliver to stores less than a mile away i delivered to neighborhood markets across the parking lot from a regular walmart that carried the wxact groceries and had only 1 cashier because corperate made the manager cut employee hours to save money,in 2010 i seen a totaly different company then in the 90s heading down hill

  31. Its because the old Walmart Stores are being converted into Fema Camps the US is trillions in debt and the US Government knows a collapse is comming.

  32. Sounds like Walmart is being run by democrats. Maybe they should go on a six weeks vacation. Then when they come back they can blame Amazon and call them racist.

  33. It's a problem for me when does not enough checkers. You have to do your own groceries and check out yourself I have a disability were I don't understand how to even do it I have to get help every time I was in special education class when I was growing up Have a disability for the state unless thing help me I can't buy anything.

  34. 👋Bill Clinton took money from tax payers to put an airport in Arkansas that Wal Mart and the rest of the businesses like Tyson and JB Hunt could move stuff from China . This is where American jobs went . And up until now the playing field has been one sided in favor of other countries. They make and send it to America expecting us to buy it . What with ? .
    They also opened up one of their main Corporate offices and factories in China . This all the Chinese crap .
    When they started out their trucks all had signs on them telling Americans they were dealing with American products . When the airport was finished ! That’s when Wal Mart removed the made in America signs from their trucks .

  35. When you are fired can be black listed for life and unable to work for any company they own as well as future buy outs. AKA blacklisted nearly happened to me

  36. knock off the dumb comments, shop lifting and the shop lifter being the victim is the reason stores are closing.

  37. They need more Fema camps and community control sites and parking spots for the UN vehicles they are bringing in. A staging area within the community so they can control the people when martial law is declared, and a containment area for citizens who have been held captive until they transport you to a Fema camp.!

  38. Fema – mart Un control staging area close to town prison camp until transport to Fema one Death camps by train cars with restraints

  39. Black walmarts smell like air freshener and have new camera cops in parking lots with flashing lights and wireless cameras watching you!

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