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In an attempt to boost struggling finances, Walmart is closing 269 stores—154 of them in the United States. Two-thirds of the US stores to be closed are smaller "Walmart Express" locations, KTLA reports; 12 are Walmart Supercenters and four are Sam's Club stores. Most of the stores being closed are within 10 miles of another Walmart and are not performing well—and Walmart still plans to open 300 new stores globally by 2017.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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This is just a typical a business decision. Close the under-performing stores, and add new ones in areas of growth. It's really no different than Microsoft laying off thousands and then hiring that many or more, when going into a new direction, eliminating a product and developing a new one. When Walmart or any other company closes stores and stops building new ones, it's time for the shareholders to be worried.
Many reasons for Walmart's woes. Cannibalization is a factor. The increased hourly wages also affects the bottom line. I believe online shopping is the main reason. Amazon is hurting Walmart. Walmart will need to focus more on their online shopping program to remain competitive. I am certain Walmart will be able to make the necessary changes to challenge the e-commerce giant and others. It will take some time though.
Walmart with all the expense by local councils, planners ,zoning, DOT, tax concessions and accommodating services should guarantee tenant replacement before these cool cats leave their squaller skeleton buildings scattered everywhere without occupancy for years!. I would mandate total maintainence of former 154 locations including air conditioning, heating, resurfacing parking lots ,roofing and ongoing repairs before sneaking out of leaving trail of suggested economic failure.!!!!
Walmart with all the expense by local councils, planners ,zoning, DOT, tax concessions and accommodating services should guarantee tenant replacement before these cool cats leave their squaller skeleton buildings scattered everywhere without occupancy for years!. I would mandate total maintainence of former 154 locations including air conditioning, heating, resurfacing parking lots ,roofing and ongoing repairs before sneaking out of leaving trail of suggested economic failure.!!!!
From what I'm reading, the majority of the Walmart Express stores are corporate owned. If not I would venture to guess they are under long term leases. Site maintenance is a landlord / owner issue and local ordinances should be in place to cover these types of eventualities.
Walmart with all the expense by local councils, planners ,zoning, DOT, tax concessions and accommodating services should guarantee tenant replacement before these cool cats leave their squaller skeleton buildings scattered everywhere without occupancy for years!. I would mandate total maintainence of former 154 locations including air conditioning, heating, resurfacing parking lots ,roofing and ongoing repairs before sneaking out of leaving trail of suggested economic failure.!!!!
I agree with you. Any large mega-store should have to put a huge payment in excrow for demolition. If another company buys the building within a few years of the original one closing, the escrow money will be returned. If not, the escrow money will be used to demolish the mega store. Too many of these vacant mega-stores sit around for years destroying neighborhoods.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,260,275 times
Reputation: 57826
Quote:
Originally Posted by Retroit
I agree with you. Any large mega-store should have to put a huge payment in excrow for demolition. If another company buys the building within a few years of the original one closing, the escrow money will be returned. If not, the escrow money will be used to demolish the mega store. Too many of these vacant mega-stores sit around for years destroying neighborhoods.
When the K-Mart closed up in a nearby city in 2002, it took down many other smaller stores in the strip mall that it anchored. That center sat mostly vacant and in disrepair for many years until just about 3 years ago, when Walmart took over the old K-Mart building, remodeled and opened. Since then the entire shopping center has had a nice new makeover, with many new tenants, and is thriving. Ironic.
From what I can see, Walmart may be at its peak and will now start a long slow decline. I was shopping for a new Microwave today, and what I saw was some very cheap off brands on the low end of the price range. So we went to Target and found what we wanted at the price point we wanted. They've also begun to only carry items that move so much every year. This means they are dropping the idea of being a one stop shop. Now customers will be looking in other stores. They also aren't trying as hard on the price end of the business. More people will then limit their shopping to the store that has all they want at a fair price. Is it all for profits? Probably, so that the executives hit their targets and get their big bonuses. Is that a good way to run a business long term? I don't think so.
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