We have made the difficult decision to close four of our Chicago stores today.
Never is the decision to shut a store simple. The impact extends beyond the mere closure of a building. It affects individuals, including those who reside, shop, and work in the communities surrounding our stores, and we never take that lightly. Throughout this transition, we will be guided by the principle of respect and compassion for people and communities.
Walmart Says It Will Shut Down Four Locations in Chicago
For example, all employees in these stores may transfer to another Walmart location. This week, hiring managers from nearby facilities will be in each of these stores to assist employees in locating their next position.
We place a premium on playing an active role in the community. We are proud of our neighborhood investments, including Christmas in the Wards, the Always Giving Back Foundation Bike Giveaway, ChiGives Back MLK Day, and the Bud Billiken Day Parade.
We will continue to collaborate with local organizations to develop solutions to city and national problems, such as racial inequality and food deserts. We will continue to create and expand job opportunities and utilize our resources to help strengthen the community, specifically underserved populations.
We anticipate that the community will ask why we are closing these locations.
The most straightforward explanation is that our Chicago stores have not been profitable since we opened the first one nearly 17 years ago – these stores lose tens of millions of dollars annually, and their annual losses have nearly doubled in the last five years. The remaining four Chicago stores continue to confront the same business challenges, but we believe this decision affords us the greatest opportunity to assist them in remaining open and serving the community.
Over the years, we have tried numerous strategies to better the business performance of these locations, including the construction of smaller stores, the localization of product assortment, and the provision of non-retail services. We have invested hundreds of millions of dollars in the city, including $70 million over the past few years to renovate our stores and construct two new Walmart Health facilities and a Walmart Academy training facility.
It was anticipated that these investments would enhance the performance of our stores. Unfortunately, these efforts have not significantly enhanced our stores’ fundamental business challenges.
As we’ve shared these challenges with community and city leaders over the years, they’ve been receptive and supportive. As we sought solutions, it became increasingly apparent that there was nothing that leaders could do to assist us reach a point where these stores would be profitable.
Hence, we closed these Chicago businesses. On April 16, the following retailers will close:
- #5781 Chatham Supercenter, the Walmart Health center, and the Walmart Academy, 8431 S. Stewart Ave.
- #3166 Kenwood Neighborhood Market, 4720 S. Cottage Grove Ave.
- #5645 Lakeview Neighborhood Market, 2844 N. Broadway St.
- #5646 Little Village Neighborhood Market, 2551 W. Cermak Road
These pharmacies will remain open to serve patients for up to thirty days.
We will work with local leaders to identify reuse options for these facilities, ensuring that they remain integral parts of their communities. This includes the Walmart Academy, which we plan to donate to the community to help strengthen Chatham and the surrounding neighborhoods.
Every store is replete with tales of employees who have accomplished extraordinary things for themselves and others. We appreciate everything that they have done. During this transition, they are our priority.
- All associates are eligible to transfer to any other Walmart or Sam’s Club facility.
- Representatives from surrounding facilities will be in each of these stores to help associates find their next opportunity.
- All associates will be paid until Aug. 11, 2023, unless they transfer to another location during that time.
- After Aug. 11, if they do not transfer, eligible associates will receive severance benefits.