This Tuesday Walmart reported that it will close half of its Chicago stores due to the loss of "tens of millions of dollars a year." The company assured that its employees could be transferable to other locations. However, the chain has also been reducing its number of employees in several states in the country.
The company informed in a press release that four of its stores will cease operations on April 16 due to their lack of profitability. According to Walmart since they opened the first store in Chicago nearly two decades ago, stores in Auburn Gresham, Bronzeville, Lakeview East and Marshall Square have lost millions of dollars annually.
"These stores lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years," the company said.
Walmart said they tried several strategies to be profitable, but none of their changes worked. The company said its other remaining stores in Chicago have "the same business difficulties," but they hope this decision will help the other four locations stay open.
BREAKING NEWS: Walmart closing 4 Chicago stores, blaming millions in annual losseshttps://t.co/VmmCSXu2uq
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The chain stated that employees at these stores will be eligible for transfer to other company stores. However, Walmart has not only been reducing its locations, but also the number of its employees.
Earlier this month the company reported that it would lay off more than 2,000 employees in Texas, Pennsylvania, New Jersey and Florida. "We recently adjusted staffing levels to better prepare for future needs customers may have," said a company spokesperson. In addition to this, the chain recently announced the permanent closure of all its locations in Portland, Oregon and four other stores in Illinois and Indiana.
John David Rainey, the company's chief financial officer, recently explained that while most of their profits come from physical stores, they believe that in five years this will no longer be the case. The chain has focused in recent months on improving its online sales platform.
