Walmart Announces to Shut Down More Stores by 2024
As 2024 progresses, the retail sector faces a mix of success and struggles, with major players like Macy's, Kohl's, Family Dollar, and Dollar Tree announcing store closures due to declining foot traffic and sales.
The retail industry is further strained by record inventory shrinkage from theft and consumers tightening their budgets amidst rising costs in food, energy, and other sectors, leading to reduced spending on non-essential goods.
Recent Consumer Price Index (CPI) data indicates a 3.2% increase in prices from the previous year, with significant rises in the costs of clothing, petrol, and energy, putting additional stress on household finances.
Facing these challenges, Walmart closed approximately 24 stores in 2023 due to underperformance and economic downturn.
Walmart announced the closure of two California stores in January 2024 and plans to shut down an additional two, totaling six closures for the year.
While specific details were not provided, Walmart attributed the closures to poor performance, underscoring the company's commitment to optimizing its store portfolio and ensuring long-term sustainability in a tough retail landscape.