Walmart shuts four stores in Chicago - halving its footprint in Illinois city trends now
Walmart is shuttering half of its stores in Chicago, mostly located on the crime-ridden city's south and west sides, that have been losing millions each year.
The four stores closing their doors have 'not been profitable' for several years, even after efforts to turn them around, according to a statement released on their website.
'The simplest explanation is that collectively our Chicago stores have not been profitable since we opened the first one nearly 17 years ago,' Walmart said.
'These stores lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years,' the statement continued.
At least 11 other stores have closed across the country so far this year from Hawaii to Washington, D.C.
The closings were announced just days after Chicago's newly elected liberal mayor Brandon Johnson blamed the city's poverty and crime rates on businesses that don't pay taxes.
Walmart is shuttering half of its stores in Chicago, saying the four stores closing their doors have 'not been profitable' for several years, even after efforts to turn them around
The closings were announced just days after Chicago's newly elected Mayor Brandon Johnson blamed the city's poverty and crime rates on businesses that don't pay taxes
Johnson will replace outgoing mayor Lori Lightfoot, who fell out of favor after crime surged by 47% under her watch
While Walmart in their statement did not specify the exact causes for the continued losses over the years in the Chicago stores, some on social media immediately pointed to crime rates in the area.
To date in 2023 over 2022, thefts are up by 25 percent according to the Chicago Police Department while robberies are up 11 percent.
In 2022, Walmart CEO Doug McMillon had warned that theft in stores around the country could impact stores and cause additional closings.
Despite the previous warnings, the company noted the decision as difficult.
'The decision to close a store is never easy. The impact is greater than just closing a building. It affects people — people who work in, shop in and live in communities near our stores — and we never take that lightly,' Walmart said.
Walmart officials cited 'business difficulties' in their statement addressing the remaining four stores in Chicago, as well.
'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,' Walmart said.
In their statement, they also explained that while they are shuttering the four locations, they are offering employees the chance to transfer in the coming weeks.
Chicago's closings come just days after Walmart closed several stores in Portland, Oregon in
