This massive grocery store now closes down three locations in various states, confirming more reasons behind the closures.
While Walmart is growing its footprint, it has also pulled back in certain areas citing low profitability.
Locations in San Diego and El Cajon, California, which is located about 16 miles from San Diego, shut on February 9, per Business Insider.
On Friday, February 16, the location on South High Street in Columbus, Ohio closed down.
That location’s pharmacy is still open. It too will shut its doors for good on March 4.
Walmart closed at least 22 stores last year.
Now, it has shut three stores in just a span of weeks.
In a letter to the Mayor of Columbus, Walmart explained that the closing location was not meeting expectations for profits.
“This decision was not made lightly and was reached only after a careful and thoughtful review process,” Walmart said.
“While our underlying business is strong, this store hasn’t performed as well as we hoped, and we made the decision to not renew the lease,” the company added.
The announcement came just days before the store shut for good, with employees only finding out about the closure on February 2.
Luckily, the store’s roughly 180 workers have months to search for jobs at other locations, reports The-Sun.
If they fail to get a post at another store by May 3, employees will be terminated, according to Walmart’s letter.
There are at least ten other Walmart stores in the Columbus area.
The San Diego and El Cajon locations, within miles of each other, have also impacted shoppers and workers alike.
And several other Walmart’s are remaining open in the San Diego area.
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Also Read: This Massive Mall Retailer Is Now Closing In California
Other Economy News Today
This famous shoe company is now laying off 1,600 employees, part of a plan that was first announced back in December.
Nike is laying off about 2% of its total workforce, the company confirmed to Retail Dive.
That amounts to more than 1,600 people, based on the 83,700 employees Nike reported in its latest annual report.
“Nike’s always at our best when we’re on the offense.
The actions that we’re taking put us in the position to right-size our organization to get after our biggest growth opportunities as interest in sport, health and wellness have never been stronger,” Nike said in a statement.
“While these changes will impact approximately 2% of our total workforce, we are grateful for the contributions made by all Nike teammates.”
A company spokesperson did not respond to questions about whether the layoffs were tied to the cost-savings plan, which referenced efforts to streamline the organization.
The cost-savings plan includes more than $400 million in charges, which were mostly set aside for severance costs.
Nike announced the cost-savings initiative after reporting Q2 revenues grew just 0.5% year over year.
The sportswear giant is projecting Q3 revenues will be down slightly year over year and that annual revenue will grow just 1%.
The plan is aimed at generating up to $2 billion in savings over the next three years, the majority of which will then be reinvested to drive growth, innovation and profitability.
In addition to streamlining efforts, Nike will simplify its product portfolio and increase its use of automation.
According to a memo about the layoffs cited by several news organizations, CEO John Donahoe told employees the company plans to invest in growth areas like running, women’s and the Jordan brand.
Based on that communication, the layoffs will not impact store workers or distribution center employees, and will take place in two phases, the first of which begins on Friday.
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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy
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