Walmart Closing 269 Stores Worldwide

[TAC]

You could convert the land that houses those giant buildings into schools.

 

Not really Wal-Mart's issue but a great idea. I think they mostly lease their buildings. I was once told that they are in the retail business, not the real estate business.

 

Same was said about all the empty airport space. Plenty of parking!

[PepRock01]

There are a couple of Neighborhood Wal-Mart grocery stores in Louisville that are like ghost-towns constantly.

 

The Wal-Mart Super Center on Bashford Manor is like a zoo though.

 

It's a miniature state fair.

[All State Baseball]

any of them in KY?

[Jumper_Dad]

Wal-Marts closing shop is devastating for communities. What do you do with a massive vacant building with 2,000 parking spaces on multiple acres of land? Also generally in prime time real estate.

How would anyone know how devastating it is...very very few Walmarts have closed in the last 40 years. One thing that will happen if rural stores close is that the local citizens prices on consumables will go up within a month or two of Walmart closing. Every retailer out there has two levels of pricing 1) Lower prices if they have Walmart Comp 2) Higher prices if they don't, grocery stores will take a huge advantage of them closing by going back up on detergent, shampoo, dog food, toilet paper and other items like this.

 

As far as the empty buildings, Walmart (if they owned them) does everything they can to get a tenant in old buildings when they relocate into a newer bigger store down the street. One of my old stores is owned by a local church and now a community rec center, many have been converted into theaters, car lots or sold to other retailers.

 

There are some stores that no matter what is done, they will never be profitable at any sustainable levels. Some towns Walmart over saturated with stores too close together. Those from what I've read today appear like the few Walmart/Supercenters that are looking to close as well the 100+ Walmart Express. Looks like that experiment has failed or at least they have determined what it takes to be profitable and those stores aren't in a position be profitable.

 

Could be some Union Issues but I doubt it with there being so many small stores closing. Looks like they are trying to cut out unprofitable stores.

 

The voluntary increase (to $9 and going to $10 this Feb 1)in wages has put a lot of pressure on corporate profits this year from what I've read, I'm sure the stock holders in the company and the board of directors haven't been real happy with that.

[Jumper_Dad]

Used to frequent the Marketplace in J-town quite a bit, it was always pretty busy. Every time I went in the one on Poplar Level it was empty.

 

Bashford Manor is a nightmare. I only go to that one in emergency situations.

Overall one of the worst performing stores in the history of Walmart in KY...it has had some good years, but many many more forgettable ones.

[Jumper_Dad]

Not really Wal-Mart's issue but a great idea. I think they mostly lease their buildings. I was once told that they are in the retail business, not the real estate business.

 

Same was said about all the empty airport space. Plenty of parking!

 

Walmart is the biggest real estate company in America I read once. Buy, sell and manage more sq footage than anyone else. Walmart for the most part of the last 20+ years has owned their buildings, in the early years they did lease many of them. In some cases building them and then selling them to a 3rd party then leasing them back...but for the most part that stopped many years ago.

[Jumper_Dad]

Never underestimate first to market. Additionally, Wally cant touch Amazon customer service levels. Walmart may be better off focusing on crushing Costco.

 

Walmart aint crushing anyone any more...they don't have that mind set anymore :irked: Even though at store level we had the same sales and profit expectations, Walmart caved to bad press and quit competing.

 

I remember what we used to do to compete with and surpass KMart when Walmart was much much smaller. We were ruthless in competition (beat their ads, cheaper prices on every item we could find) with KMart...and would have probably closed them for good...but at some point Walmart QUIT competing, they haven't even went out to comp shop (check prices out the competitors) at store level in years and years.

[Jumper_Dad]

any of them in KY?

 

No

http://news.walmart.com/news-archive/2016/01/15/walmart-continues-sharpened-focus-on-portfolio-management#anchor

Looks like some close tomorrow and most of the rest by 1/28

 

29 in Texas...mostly Express Stores

[sportsfan41]

Global slowdown and this is a reflection that the MBAs think it will last a while.

 

The price of oil reflects this and there are projections that the 'oil glut' will last years. Cheap gas prices are great. But it also reflects a slow(ing) global economy.

 

As far as what to do with the buildings. A startup datacenter/cloud provider could suck them up and convert them into IT centers using 'building inside a building' architecture. The big shell is great for that. The build multiple 'rooms' as needed inside the shell.

 

Speaking of which did anyone else see Venezuela's record breaking inflation rate, now up to 143.5%.

[bugatti]

How would anyone know how devastating it is...very very few Walmarts have closed in the last 40 years. One thing that will happen if rural stores close is that the local citizens prices on consumables will go up within a month or two of Walmart closing. Every retailer out there has two levels of pricing 1) Lower prices if they have Walmart Comp 2) Higher prices if they don't, grocery stores will take a huge advantage of them closing by going back up on detergent, shampoo, dog food, toilet paper and other items like this.

 

As far as the empty buildings, Walmart (if they owned them) does everything they can to get a tenant in old buildings when they relocate into a newer bigger store down the street. One of my old stores is owned by a local church and now a community rec center, many have been converted into theaters, car lots or sold to other retailers.

 

There are some stores that no matter what is done, they will never be profitable at any sustainable levels. Some towns Walmart over saturated with stores too close together. Those from what I've read today appear like the few Walmart/Supercenters that are looking to close as well the 100+ Walmart Express. Looks like that experiment has failed or at least they have determined what it takes to be profitable and those stores aren't in a position be profitable.

 

Could be some Union Issues but I doubt it with there being so many small stores closing. Looks like they are trying to cut out unprofitable stores.

 

The voluntary increase (to $9 and going to $10 this Feb 1)in wages has put a lot of pressure on corporate profits this year from what I've read, I'm sure the stock holders in the company and the board of directors haven't been real happy with that.

To clarify, when Wal-Marts outgrow their facility, they don't expand, they move. Maybe 1 mile down the road. Has nothing to do with going out of business. Only a handful of things can replace something of that magnitude and afford to pump money into it to renovate. And chances are it isn't going to replicate the tax base.

[mcpapa]

Walmart aint crushing anyone any more...they don't have that mind set anymore :irked: Even though at store level we had the same sales and profit expectations, Walmart caved to bad press and quit competing.

 

I remember what we used to do to compete with and surpass KMart when Walmart was much much smaller. We were ruthless in competition (beat their ads, cheaper prices on every item we could find) with KMart...and would have probably closed them for good...but at some point Walmart QUIT competing, they haven't even went out to comp shop (check prices out the competitors) at store level in years and years.

 

Surpassing KMart is about like surpassing the Cleveland Browns.

[rockmom]

Overall one of the worst performing stores in the history of Walmart in KY...it has had some good years, but many many more forgettable ones.

 

It is one to avoid at all costs. I've heard that loss due to theft is staggering there. My son used to work at the Kroger store near there and they had the same issue.

[Jumper_Dad]

It is one to avoid at all costs. I've heard that loss due to theft is staggering there. My son used to work at the Kroger store near there and they had the same issue.

 

Shrink (loss) there may have hit $1,000,000 once if I remember correctly.

[Jumper_Dad]

Surpassing KMart is about like surpassing the Cleveland Browns.

 

30 years ago it was like David fighting Goliath...We beat them down to Browns level :lol2:

[Jumper_Dad]

To clarify, when Wal-Marts outgrow their facility, they don't expand, they move. Maybe 1 mile down the road. Has nothing to do with going out of business. Only a handful of things can replace something of that magnitude and afford to pump money into it to renovate. And chances are it isn't going to replicate the tax base.

 

Normally when Walmart relocates it is in the same taxing area and they pay much higher taxes on newer building and increased inventory...If anything goes in those old buildings it is in most all cases a net gain for the community. As new Walmart is paying more taxes and hiring more employees than the old location...anything in the old location is a win.