Walmart will close four Chicago stores on April 16, noting in an unsigned announcement that the “difficult decision” stems from a lack of profitability for the retailer in the city. The stores’ pharmacies will remain open for up to 30 additional days to serve patients.
“We know the community will have questions about why we are closing these locations,” said the announcement. “The simplest explanation is that collectively our Chicago stores have not been profitable since we opened the first one nearly 17 years ago – these stores lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years. The remaining four Chicago stores continue to face the same business difficulties, but we think this decision gives us the best chance to help keep them open and serving the community.
The announcement also detailed Walmart’s efforts to improve these stores’ performance, including “building smaller stores, localizing product assortment and offering services beyond traditional retail.”
“We have invested hundreds of millions of dollars in the city, including $70 million in the last couple years to upgrade our stores and build two new Walmart Health facilities and a Walmart Academy training center,” the announcement added.
Advertisement
Employees at these stores will be eligible to transfer to other Walmart or Sam’s Club locations, and those that do not find other Walmart positions will be paid through Aug. 11, 2023, with severance benefits provided at that time. The announcement also noted that Walmart would work with local authorities to find new reuses for the buildings, including the Walmart Academy, “which we intend to donate to the community to help further strengthen Chatham and the surrounding neighborhoods.”
The four stores slated to be closed are:
- Chatham Supercenter, the Walmart Health center, and the Walmart Academy, 8431 S. Stewart Ave.;
- Kenwood Neighborhood Market, 4720 S. Cottage Grove Ave.;
- Lakeview Neighborhood Market, 2844 N. Broadway St.; and
- Little Village Neighborhood Market, 2551 W. Cermak Road.
