One of the biggest chain stores in the world, Wal-Mart, is planning important changes for the upcoming period, closing 269 stores, the most in at least two decades. According to Bloomberg Business, the move comes as a part of the plan of abandoning the experimental small-format Express outlets, looking forward to streamlining the chain.
The shut down will affect about 10,000 employees in the U.S., from 154 different locations, as stated by Wal-Mart, which is currently the largest private employer in the country. As for its overseas stores, the move will terminate 60 stores in Brazil, currently losing money, alongside 6000 jobs.
Still, in order to make an idea about the business’ size, the plan will affect slightly 1 percent of the total square footage and revenue, the company said.
The decision was taken after Wal-Mart Chief Executive Officer Doug McMillon reviewed the 11,600 stores and evaluated their financial performance. If the Express program will be discontinued, not the same thing will happen with the larger-size Neighborhood Markets, which will continue, but 23 poor-performing stores in this chain will also be closed. Finally, the chain store is planning to expand in the U.S., opening 69 new stores and creating 6000 jobs.
“We invested considerable time assessing our stores and clubs and don’t take this lightly,” Doug McMillon said. “We are supporting those impacted with extra pay and support, and we will take all appropriate steps to ensure they are treated well.”
All the Wal-Mart employees who will lose their jobs will be give the chance to relocate to nearby stores. Also, 60 days of pay and one week of severance for each year with the company will be provided as well. Currently, the chain has 1.4 million employees in the United States and 800,000 abroad.