Walmart is the latest low-price retailer to announce store closures, according to reports.
Two stores in California and one store in Maryland is closing, according to the Business Insider. The media outlet also is reporting that the retailer has closed three other stores, two in California and one in Ohio.
Walmart’s closure announcement comes just after Dollar Tree announced this week that it will shut the doors of nearly 1,000 of its Family Dollar stores this year.
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Walmart uses process when determining store closures, Walmart exec says
USA TODAY reached out to Walmart. Senior Director of Global Communications and Corporate Affairs at Walmart, Charles Crowson, did not confirm or deny the store closures. However, Crowson told USA TODAY the process Walmart uses when determining which stores to close.
“We have more than 5,000 Walmart stores and Neighborhood Markets across the U.S., and unfortunately, some don’t meet our financial expectations, Crowson said. “While our underlying business is strong, these stores haven’t performed as well as we’d hoped.”
Walmart does not close stores at random, rather, the store goes through several factors before shutting the doors on any of its retail stores.
“These decisions aren’t made lightly and were reached after a thorough review process,” Crowson said. ”Our decisions to move forward with closures are based on several factors, including historic and current financial performance, and are in line with the threshold guiding our strategy to close underperforming locations.”
Dollar Tree announces nearly 1,000 Family Dollar store closures
Dollar Tree announced it will close nearly 1,000 of its Family Dollar stores after the stores experienced a significant underperformance in 2023, according to the press release by the company.
During the fourth quarter of 2023, Dollar Tree underwent a review of its stores performance to identify locations to close, relocate or re-banner, the company said.
“As a result of this review, we plan on closing approximately 600 Family Dollar stores in the first half of fiscal 2024. Additionally, approximately 370 Family Dollar and 30 Dollar Tree stores will close over the next several years at the end of each store’s current lease term,” the company said in the press release.
A spokesperson for Dollar Tree told USA Today that the company conducted, “a comprehensive review to identify and address underperforming stores and invest in improved store standards and growth.”
“Our review identified approximately 600 Family Dollar stores for closure in the first half of 2024 and an additional approximately 370 Family Dollar stores to be closed over the next several years during the normal course of lease expiration,” said Dollar Tree Vice President of Communications Kate Kirkpatrick. “Family Dollar and Dollar Tree stores are important to thousands of communities across this country. We owe it to those we serve to position all of our stores for success and meet the expectations of our valued customers and associates.”
Ahjané Forbes is a reporter on the National Trending Team at USA TODAY. Ahjané covers breaking news, car recalls, crime, health, lottery and public policy stories. Email her at [email protected]. Follow her on Instagram, Threads and X @forbesfineest.
This article originally appeared on USA TODAY: Walmart stores closing: California, Maryland the latest, reports say
