Walmart announced today the company will be closing 269 stores worldwide, including 8 in Louisiana. LSU Marketing Professor Dan Rice says Walmart is trying to cut out the stores where they aren’t as profitable, like Walmart Express. He says the company has realized they need to start being smart about where they’re spending their money.
“Everybody knows Walmart has big pockets but at some point they want to be wise about how they’re spending their money and they’re going to open somewhere in the order of 300 stores worldwide next year.”
Eight Louisiana stores will be closing. Rice says 95% of the Walmart stores closing have another store within 10 miles in the United States.
“Maybe get those same sales that they would’ve had running another store but draw them all through another location that already exists and cut their costs without appreciably cutting their revenue.”
Rice says the company hopes the employees losing their jobs at a closing location can be placed in another store. He says Walmart still wants to keep their loyal customers.
“What they’re trying to do is just cut back stores where they aren’t getting the traffic, not getting the returns they think they should for whatever reason.”