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Walmart is ending its Express concept and closing 269 stores

33 points by wormold 11y ago

DrScump 11y ago
here's a non-paywalled story: http://www.investopedia.com/articles/investing/011516/walmart-closes-269-stores.asp http://www.investopedia.com/articles/investing/011516/walmar...
tristanj 11y ago
And Walmart plans to open 405 stores globally in the coming year. 95 percent of the closed U.S. stores are within 10 miles of another Walmart store. They're just consolidating smaller stores into bigger ones. They experimented with express stores 5 years ago, found it didn't work as well as hoped, so they canned them. These decisions make strong business sense. The article makes it seem like it is doom and gloom for the company but they are doing just fine.
- csydas 11y ago
  I didn't really get doom and gloom from the article - most of the statements were either factual (for example, commenting that the express stores made up less than 1% of global revenue), or what I would consider to be fairly apt speculation (suggesting that closing express stores reflects that Walmart didn't see the business it had hoped, this suggestion coming right after a paragraph that explains the function of the Express Stores). I mean, the comments they had from analysts even basically echoed your sentiment that it's just business sense, so I'm not sure how you got Doom and Gloom from the article. The title is a bit bait-ish I guess, but the rest is fairly normal reporting.
- mark_l_watson 11y ago
  Thanks for the 95% closing stat being stores that are close together. My wife and I live in a small town in the mountains of Central Arizona and we have a Walmart store in the closest big town (60K population) that is just a 20 minute drive. We both like and rely on that store. There are no other Walmart stores within about 60 miles of that one, so hopefully it is safe. This store is a major employer in the area. It would be a bummer if those already marginalized workers lost their jobs.
  - anderspitman 11y ago
    Payson by chance? Still blows my mind that Prescott/PV have 3 walmarts.
    - mark_l_watson 11y ago
      No, we live in Sedona and drive to the Cottonwood store.
  - blacksmythe 11y ago
    >> It would be a bummer if those already marginalized workers lost their jobs. Unless people on average switch to buying more on-line, the local job market should just switch to different stores.
    - blacksmythe 11y ago
      Not sure why this is a controversial statement. Walmart is often critized for hurting local jobs - replacing successful independant business owners with lower-paid employee jobs. If this is true, Walmart leaving an area should be (at worst) job-neutral.
      - haimez 11y ago
        If Wal-Mart were to close more than just the "Express" stores, it would take a while for those local businesses to reestablish themselves and start hiring. It wouldn't likely be job neutral for a long time and in some areas might just permanently disrupt the community.
  - martinald 11y ago
    "Just" a 20 min drive. That statmeent is the reason every bricks & mortar European retailer has failed in the US. Very interesting.
    - jonknee 11y ago
      What? There are plenty of European retailers that do well in the US... IKEA, H&M, Zara, etc.
- Golddisk 11y ago
  Good point. Several other retailers (Sears, Footlocker, Macy's) are also closing stores but the difference is that Wal Mart is planning on opening stores in stronger markets whereas those other retailers are not.
- mcguire 11y ago
  Three Walmart Express stores in north Alabama have opened in approximately the last year; one of those (New Hope or Owen's Crossroads; can't remember where it is exactly) had just opened a couple weeks ago. It might be within 10 miles of a supercenter while the other two are not. None of the three have been open long enough to force their competition out of business, fortunately. Your "experimented with express stores 5 years ago" doesn't quite catch the nuance of this change. All of these stores are new construction---there's a fair bit of sunk capital involved. Walmart is flailing.
te_chris 11y ago
This is the opposite of the trend in the UK. Reverting from the big stores and opening shit tons of sainsburys local, tesco express and metro, little waitrose etc
- johnchristopher 11y ago
  With premium prices as well ?
  - seabee 11y ago
    The prices aren't much different to the full-size stores, but they (understandably) only stock the small sizes of everything. You wouldn't buy in bulk there.
    - makomk 11y ago
      For some items they actually only stock one of the larger sizes, but they do generally only stock one size of most things.
  - Symbiote 11y ago
    The prices are the same, but the selection is different. The small stores typically don't stock any budget brand goods, they only stock the average and luxury version. They've out-competed a huge number of independent stores, since the supply chain of Tesco allows them to keep the small store well-stocked at relatively small cost, and with less floor space needed for a stock room. A lorry drops off two or three pallets of goods at the small store on its way to a supermarket. An independent shop can't compete with close to free delivery and the purchasing power of Tesco. I used to live 5 minutes walk from a Tesco Express, and did almost all my food shopping there. I'd only go to the supermarket (15 minutes cycle away) if I'd run out of something unusual.
    - johnchristopher 11y ago
      In Belgium, the small stores versions of the big supermarket typically run premium prices. They also store less products in premium shelves and only the expensive brands (and no bulk for things like sodas, milk, etc.).
vortico 11y ago
I've only seen one of these stores while traveling, and it seemed to target the small township due to it being the only one in town. So my guess is that a private individual will take advantage of their closure by buying their property after liquidation, and so the employees will simply switch employers. This is why I'm not bothered by the "16,000 workers losing their jobs" statement.
- maxerickson 11y ago
  The text in the article is The store closures are to affect 16,000 jobs internationally, some 10,000 of those positions in the United States. Looking at the Walmart press release, there is apparently a real difference, as they will try to give many of those employees positions in nearby stores: http://news.walmart.com/news-archive/2016/01/15/walmart-continues-sharpened-focus-on-portfolio-management http://news.walmart.com/news-archive/2016/01/15/walmart-cont... In total, approximately 16,000 associates will be impacted by the decision, about 10,000 of them in the U.S. More than 95 percent of the closed stores in the U.S. are within 10 miles on average of another Walmart, and the hope is that these associates will be placed in nearby locations. Where that isn’t possible, the company will provide 60 days of pay and, if eligible, severance, as well as resume and interview skills training. Whether with Walmart or elsewhere, the company’s objective is to help all associates find their next job opportunity.
ianamartin 11y ago
I think this is a good move for them. I don't see any of these express locations in NYC, but there is an "express" type Target relatively close to me in Brooklyn, and it's abysmal. It doesn't really do anything for them. I saw that Target logo over by Barclays Center and thought, "Oh thank god! A real store where I can buy a variety of things and consolidate shopping trips. And it's on my way home from the work commute. Great!" Nope. It's not any better than a RiteAid or some mom and pop dollar store or "grocery" shop. When I found out that there was another Target even closer to me, I almost didn't bother going. I'm glad I did because it was a genuine (from my perspective as a Texan) Target store. If Wal-Mart had these express stores in my area, I wouldn't bother. If I can't find what I need in your store anyway, I'd rather deal with a local and have the relationship with the business owner where I can at least say, "Hey, I shop here all the time. I am really frustrated that I can't find X. Would you consider placing an order for it if I promise to buy X of them every month?" That works. Good luck doing that at a Wal-Mart or a Target. As much as I absolutely despise shopping in Brooklyn, I appreciate the locals. They really will help you out if you make it a point to develop a relationship with them. And I'm not talking about the hipster-run artisanal crowd. I'm talking about the immigrants who bust ass and deal with hate speech and accusations of terrorism every time something goes down. I hate the fact that they are good businessmen and stock only the junk food and cheap crap that people buy. It makes my life more difficult. But they are responding correctly to their market. The difference between these guys and the shitty Target store at Barclays is that I can build a relationship with them. The goods for sale are pretty much the same. And plus, when you are alone and single and new to the city and shit happens in France like it did a couple months ago, you can go hang out with a bunch of Muslims who know your name and drink free beer while they say 'Vive La France' and condemn that terroristic bullshit and support their community. Try that at a Wal-Mart Express or a gimped up Target store. I don't think the big stores like that can really succeed competing with the locals in a place like NYC. I would guess it's the same in other dense population centers like DC.
- ceras 11y ago
  What makes the Barclay's Center Target different than other Targets? I went just last week and found it the same as any other Target I've been to in the US (clothes, cleaning supplies, home goods, electronics, toys, non-fresh food, etc.)
rconti 11y ago
I was shocked to learn (on the news this morning) that 2 WalMart stores in the Bay Area are closing (Oakland and San Jose (Monterey Highway)). I don't know there were ANY until a week or two ago when I did a Google Maps search. My hatred of them goes back to my youth and early online activism from when WalMart was pushing out local mom and pop record stores in small towns and replacing them with their shitty censored versions of music. (WalMart insisted that labels manufacture and sell censored copies just so they could push their twisted morals on America). Needless to say, nothing they have done in the past twenty years has made them any more deserving of my dollars. I've never bought anything there and never will. Fortunately we live in an area of the country where it's easier to avoid them than it is to shop there, even if you wanted to.
- refurb 11y ago
  WalMart was pushing out local mom and pop record stores in small towns and replacing them with their shitty censored versions of music. How would Walmart put these stores out of business? Or do you mean consumers did by shopping at Walmart instead?
  - influx 11y ago
    They had cheaper prices, which means poor people could buy more goods with their paycheck. It's weird they would shop there instead.
    - rconti 11y ago
      It's about using their power to create and push an inferior product (censored music created especially for WalMart). At the time (early-mid 90s) I was a teenager, so it was a big deal that others who couldn't drive no longer had the option to buy proper versions of music thanks to WalMart's heavy hand. WalMart shoppers vote with their dollars, and so do I.
  - superuser2 11y ago
    Walmart's MO was/is to beat the prices of local businesses, operating at a loss (subsidized by other stores), until those businesses die. Then it can jack prices back up.
viral007 11y ago
Out of the stores that Walmart is shutting down in California region, few of the stores were doing very well and located in the best areas for their customer base in So. Cal. Then there were some stores that were just redesigned. This makes me think if it could again be union-related issues in California. Reference to previous sudden closure in Pico Rivera in So. Cal.: http://ktla.com/2015/04/16/sudden-closure-of-pico-rivera-wal-mart-draws-skepticism-from-employees/ http://ktla.com/2015/04/16/sudden-closure-of-pico-rivera-wal...
Spooky23 11y ago
Puzzling to me that CVS, Walgreens and RiteAid can pull off this kind of business, yet WalMart can't.

33 points by wormold 11y ago

here's a non-paywalled story: http://www.investopedia.com/articles/investing/011516/walmart-closes-269-stores.asp http://www.investopedia.com/articles/investing/011516/walmar...

tristanj 11y ago

And Walmart plans to open 405 stores globally in the coming year. 95 percent of the closed U.S. stores are within 10 miles of another Walmart store. They're just consolidating smaller stores into bigger ones. They experimented with express stores 5 years ago, found it didn't work as well as hoped, so they canned them. These decisions make strong business sense. The article makes it seem like it is doom and gloom for the company but they are doing just fine.

csydas 11y ago
I didn't really get doom and gloom from the article - most of the statements were either factual (for example, commenting that the express stores made up less than 1% of global revenue), or what I would consider to be fairly apt speculation (suggesting that closing express stores reflects that Walmart didn't see the business it had hoped, this suggestion coming right after a paragraph that explains the function of the Express Stores). I mean, the comments they had from analysts even basically echoed your sentiment that it's just business sense, so I'm not sure how you got Doom and Gloom from the article. The title is a bit bait-ish I guess, but the rest is fairly normal reporting.
mark_l_watson 11y ago
Thanks for the 95% closing stat being stores that are close together. My wife and I live in a small town in the mountains of Central Arizona and we have a Walmart store in the closest big town (60K population) that is just a 20 minute drive. We both like and rely on that store. There are no other Walmart stores within about 60 miles of that one, so hopefully it is safe. This store is a major employer in the area. It would be a bummer if those already marginalized workers lost their jobs.
- anderspitman 11y ago
  Payson by chance? Still blows my mind that Prescott/PV have 3 walmarts.
  - mark_l_watson 11y ago
    No, we live in Sedona and drive to the Cottonwood store.
- blacksmythe 11y ago
  >> It would be a bummer if those already marginalized workers lost their jobs. Unless people on average switch to buying more on-line, the local job market should just switch to different stores.
  - blacksmythe 11y ago
    Not sure why this is a controversial statement. Walmart is often critized for hurting local jobs - replacing successful independant business owners with lower-paid employee jobs. If this is true, Walmart leaving an area should be (at worst) job-neutral.
    - haimez 11y ago
      If Wal-Mart were to close more than just the "Express" stores, it would take a while for those local businesses to reestablish themselves and start hiring. It wouldn't likely be job neutral for a long time and in some areas might just permanently disrupt the community.
- martinald 11y ago
  "Just" a 20 min drive. That statmeent is the reason every bricks & mortar European retailer has failed in the US. Very interesting.
  - jonknee 11y ago
    What? There are plenty of European retailers that do well in the US... IKEA, H&M, Zara, etc.
Golddisk 11y ago
Good point. Several other retailers (Sears, Footlocker, Macy's) are also closing stores but the difference is that Wal Mart is planning on opening stores in stronger markets whereas those other retailers are not.
mcguire 11y ago
Three Walmart Express stores in north Alabama have opened in approximately the last year; one of those (New Hope or Owen's Crossroads; can't remember where it is exactly) had just opened a couple weeks ago. It might be within 10 miles of a supercenter while the other two are not. None of the three have been open long enough to force their competition out of business, fortunately. Your "experimented with express stores 5 years ago" doesn't quite catch the nuance of this change. All of these stores are new construction---there's a fair bit of sunk capital involved. Walmart is flailing.

te_chris 11y ago

This is the opposite of the trend in the UK. Reverting from the big stores and opening shit tons of sainsburys local, tesco express and metro, little waitrose etc

johnchristopher 11y ago
With premium prices as well ?
- seabee 11y ago
  The prices aren't much different to the full-size stores, but they (understandably) only stock the small sizes of everything. You wouldn't buy in bulk there.
  - makomk 11y ago
    For some items they actually only stock one of the larger sizes, but they do generally only stock one size of most things.
- Symbiote 11y ago
  The prices are the same, but the selection is different. The small stores typically don't stock any budget brand goods, they only stock the average and luxury version. They've out-competed a huge number of independent stores, since the supply chain of Tesco allows them to keep the small store well-stocked at relatively small cost, and with less floor space needed for a stock room. A lorry drops off two or three pallets of goods at the small store on its way to a supermarket. An independent shop can't compete with close to free delivery and the purchasing power of Tesco. I used to live 5 minutes walk from a Tesco Express, and did almost all my food shopping there. I'd only go to the supermarket (15 minutes cycle away) if I'd run out of something unusual.
  - johnchristopher 11y ago
    In Belgium, the small stores versions of the big supermarket typically run premium prices. They also store less products in premium shelves and only the expensive brands (and no bulk for things like sodas, milk, etc.).

vortico 11y ago

I've only seen one of these stores while traveling, and it seemed to target the small township due to it being the only one in town. So my guess is that a private individual will take advantage of their closure by buying their property after liquidation, and so the employees will simply switch employers. This is why I'm not bothered by the "16,000 workers losing their jobs" statement.

maxerickson 11y ago
The text in the article is The store closures are to affect 16,000 jobs internationally, some 10,000 of those positions in the United States. Looking at the Walmart press release, there is apparently a real difference, as they will try to give many of those employees positions in nearby stores: http://news.walmart.com/news-archive/2016/01/15/walmart-continues-sharpened-focus-on-portfolio-management http://news.walmart.com/news-archive/2016/01/15/walmart-cont... In total, approximately 16,000 associates will be impacted by the decision, about 10,000 of them in the U.S. More than 95 percent of the closed stores in the U.S. are within 10 miles on average of another Walmart, and the hope is that these associates will be placed in nearby locations. Where that isn’t possible, the company will provide 60 days of pay and, if eligible, severance, as well as resume and interview skills training. Whether with Walmart or elsewhere, the company’s objective is to help all associates find their next job opportunity.

ianamartin 11y ago

I think this is a good move for them. I don't see any of these express locations in NYC, but there is an "express" type Target relatively close to me in Brooklyn, and it's abysmal. It doesn't really do anything for them. I saw that Target logo over by Barclays Center and thought, "Oh thank god! A real store where I can buy a variety of things and consolidate shopping trips. And it's on my way home from the work commute. Great!" Nope. It's not any better than a RiteAid or some mom and pop dollar store or "grocery" shop. When I found out that there was another Target even closer to me, I almost didn't bother going. I'm glad I did because it was a genuine (from my perspective as a Texan) Target store. If Wal-Mart had these express stores in my area, I wouldn't bother. If I can't find what I need in your store anyway, I'd rather deal with a local and have the relationship with the business owner where I can at least say, "Hey, I shop here all the time. I am really frustrated that I can't find X. Would you consider placing an order for it if I promise to buy X of them every month?" That works. Good luck doing that at a Wal-Mart or a Target. As much as I absolutely despise shopping in Brooklyn, I appreciate the locals. They really will help you out if you make it a point to develop a relationship with them. And I'm not talking about the hipster-run artisanal crowd. I'm talking about the immigrants who bust ass and deal with hate speech and accusations of terrorism every time something goes down. I hate the fact that they are good businessmen and stock only the junk food and cheap crap that people buy. It makes my life more difficult. But they are responding correctly to their market. The difference between these guys and the shitty Target store at Barclays is that I can build a relationship with them. The goods for sale are pretty much the same. And plus, when you are alone and single and new to the city and shit happens in France like it did a couple months ago, you can go hang out with a bunch of Muslims who know your name and drink free beer while they say 'Vive La France' and condemn that terroristic bullshit and support their community. Try that at a Wal-Mart Express or a gimped up Target store. I don't think the big stores like that can really succeed competing with the locals in a place like NYC. I would guess it's the same in other dense population centers like DC.

ceras 11y ago
What makes the Barclay's Center Target different than other Targets? I went just last week and found it the same as any other Target I've been to in the US (clothes, cleaning supplies, home goods, electronics, toys, non-fresh food, etc.)

rconti 11y ago

I was shocked to learn (on the news this morning) that 2 WalMart stores in the Bay Area are closing (Oakland and San Jose (Monterey Highway)). I don't know there were ANY until a week or two ago when I did a Google Maps search. My hatred of them goes back to my youth and early online activism from when WalMart was pushing out local mom and pop record stores in small towns and replacing them with their shitty censored versions of music. (WalMart insisted that labels manufacture and sell censored copies just so they could push their twisted morals on America). Needless to say, nothing they have done in the past twenty years has made them any more deserving of my dollars. I've never bought anything there and never will. Fortunately we live in an area of the country where it's easier to avoid them than it is to shop there, even if you wanted to.

refurb 11y ago
WalMart was pushing out local mom and pop record stores in small towns and replacing them with their shitty censored versions of music. How would Walmart put these stores out of business? Or do you mean consumers did by shopping at Walmart instead?
- influx 11y ago
  They had cheaper prices, which means poor people could buy more goods with their paycheck. It's weird they would shop there instead.
  - rconti 11y ago
    It's about using their power to create and push an inferior product (censored music created especially for WalMart). At the time (early-mid 90s) I was a teenager, so it was a big deal that others who couldn't drive no longer had the option to buy proper versions of music thanks to WalMart's heavy hand. WalMart shoppers vote with their dollars, and so do I.
- superuser2 11y ago
  Walmart's MO was/is to beat the prices of local businesses, operating at a loss (subsidized by other stores), until those businesses die. Then it can jack prices back up.

viral007 11y ago

Out of the stores that Walmart is shutting down in California region, few of the stores were doing very well and located in the best areas for their customer base in So. Cal. Then there were some stores that were just redesigned. This makes me think if it could again be union-related issues in California. Reference to previous sudden closure in Pico Rivera in So. Cal.: http://ktla.com/2015/04/16/sudden-closure-of-pico-rivera-wal-mart-draws-skepticism-from-employees/ http://ktla.com/2015/04/16/sudden-closure-of-pico-rivera-wal...

Spooky23 11y ago

Puzzling to me that CVS, Walgreens and RiteAid can pull off this kind of business, yet WalMart can't.