This massive retailer has now lost 102 stores after struggling with a ‘popular model’ beloved by its rivals, sources report.
Walmart lost more than 100 locations in just one year, according to filings by the retail giant.
On Tuesday, the retailer’s earnings report revealed that last year, Walmart downsized its operational footprint by over 100 stores.
The big-box retailer lost a total of 102 stores between January and August last year, according to its investor website.
“22 supercenters, stores, and neighborhood markets” closed last year due to their poor financial performance, a spokesperson said.
Meanwhile, 79 small-formate stores were lost not “due to closure per se, but the sale of the Moosejaw and Bonobos brands,” Walmart added.
However, this downsizing should not be seen as a negative move, according to an industry expert.
Scot Ciccarelli, managing director and senior equity research analyst at Truist Securities, has praised the bravery and efforts of Walmart CEO Doug McMillon for keeping an open mind.
He explained to Business Insider that McMillon is not afraid to try out new ideas and to axe them if they do not work and reinvest the savings.
This is what Ciccarelli believes will happen in 2024 following the closures in 2023 after Walmart reportedly struggled with a popular retail strategy.
“It’s a repositioning more than anything, and good retailers are going to do the same with their store portfolio,” Ciccarelli explained to Business Insider.
GlobalData retail analyst Neil Saunders highlighted how Walmart differs from other stores, including its rivals, which means that common strategies do not always work.
“Walmart has always struggled with smaller stores,” Saunders told Business Insider.
“Partly because they don’t really know what to put in them – it’s not really what Walmart is known for and the economics are much more challenging.”
Rivals such as Walgreens, Aldi, and Trader Joe’s are most commonly between 10,000 and 18,000 square feet in size.
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Also Read: A Cosmetics Company Now Makes Painful Store Closures
Other Economy News Today
This bankrupt clothing retailer is now having a massive sale of up to 90% off as it sets to close a major location.
Soft Surroundings, a women’s clothing retailer, is officially closing one of its stores in Kansas City, Kansas, reports The-Sun.
Located in the Country Club Plaza, the store has been in operation for 12 years.
An employee confirmed on Monday that the store’s last day of operation will be Sunday, February 25.
Shoppers will be able to score a whopping 70% to 90% off on inventory at the store through Sunday.
The clothing chain had over 40 stores across the US before it filed for bankruptcy last year.
All Soft Surroundings stores have either closed down or are in the process of getting shut down.
The company will still conduct direct-to-consumer business online via its website, which the apparel company Coldwater Creek acquired as part of the bankruptcy process.
Another popular fashion and clothing retailer, Rent the Runway, is also on the verge of filing for bankruptcy.
The clothing rental service has struggled with a variety of business operations, such as meeting customer demand and maintaining its active subscriber count, according to PYMNTS.
A report from CreditRiskMonitor revealed that the e-commerce platform has a 9.99% to 50% chance of filing for bankruptcy this year.
In an effort to revitalize the company, Rent the Runway executives formulated a restructuring plan that involves cutting 10% of its corporate roles, or 37 employees.
“With already strong unit economics and high margins, this new structure is designed to set the stage for the business to achieve free cash flow breakeven in fiscal 2024,” said the company.
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Also Read: A US Company Now Declares An Unexpected Bankruptcy
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