A large number of Walmart stores are set to close down permanently next month as conditions continue to deteriorate for U.S. grocers. The biggest retailer in the world hasn’t been immune from the devastating effects of the retail apocalypse, and now several locations that have served their communities for years are about to disappear. Believe it or not, the top retail chain is reporting lagging sales growth and a myriad of challenges that include wage and consumer inflation and declining demand. The outlook is very grim, and many other big U.S. grocery chains are following Walmart’s move and shuttering multiple locations to survive the perfect storm that has already begun.
According to The U.S. Sun, over a hundred locations are on the chopping block due to “poor sales performance”. On top of that, the retail giant has decided to put an end to its nine-year experiment with pick-up-only locations and confirmed it would lay off thousands of workers at its e-commerce fulfillment centers across the country.Moreover, in a recent interview with Fox News, the former Walmart CEO pointed to several reasons why the company was struggling and warned Americans about the “detrimental impact that mass layoffs could have on the U.S.’s feeble economy.”
“It’s crazy right now. We’re stuck in this loop of wage inflation, product inflation, and cost inflation. And it’s just that cycle keeps going. And I think, unfortunately, an inevitable byproduct of some of the Fed’s moves during the pandemic,” said Bill Simon, who left his position as Walmart’s chief executive officer in 2014. Walmart has already informed investors that it expects sales growth to significantly slow down, especially in the second half of this year. On Tuesday, Walmart forecasted net sales growth of 2.5% for the current fiscal year, well below Wall Street’s prediction for a 3.3% increase. It expects adjusted earnings in a range between $5.90 per share for 2024, missing analysts’ forecast of $6.50.
Refinitiv data shows that this would mark the weakest sales growth for the retailer since its 2010 fiscal year, and the first drop in annual earnings since fiscal 2009. But Walmart is far from the only large retailer that is facing closure as sales decline. As a perfect storm of events hits food supply chains, several grocery stores nationwide are also shutting down. A new report by Best Life reveals that dozens of Winn-Dixie stores are closing right now. A spokesperson for Southeastern Grocers Inc., Winn-Dixie’s parent company, called the decision to close “difficult.” “While we understand that closing stores will impact local communities, we want to assure you this decision was not made lightly,” the spokesperson said.
Moreover, so far this year 6 Lucky supermarkets have been shuttered. And another one is on the chopping block this month after 40 years in business. In February, Green Zebra, a grocery chain that earned the love of loyal customers all across Portland, Oregon went bankrupt. The niche grocery market was known for its healthier meals, but unfortunately, the chain went under and is now closing all of its current locations. The goodbye occurs after 10 years in business.
The shutdown of so many stores is not only affecting the bottom lines of businesses but also leading to a surge in unemployment and higher prices, making it increasingly difficult for consumers to afford the basic necessities of life. Local communities are also feeling the impact, as empty storefronts and vacant malls have become the new norm. We must wake up to the fact that the retail apocalypse is not just a temporary setback but a long-term crisis that requires immediate action.