Wal-Mart $WMT to close hundreds of stores

Discussion in 'Stock Market Forum' started by baudwalk, Jan 15, 2016.

  1. baudwalk

    baudwalk Senior Investor

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    http://www.bloomberg.com/news/artic...undreds-of-stores-including-express-locations
    In the US, 154 stores will be closed and about 10,000 jobs will be lost. I haven't found a list of locations yet. The WSJ and CNBC are also reporting on this breaking news. $WMT opened down this morning, but is recovering a bit.

    The news doesn't really surprise me that much. Brick-and-mortar retail is having a difficult time with comps. $BBY fell sharply after reporting soft Christmas sales, attributed to weak cell phone sales.
     
    Last edited by a moderator: Jul 8, 2016
  2. Alex

    Alex Senior Investor

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    This will affect many of the part-time workers that do rely on the work, but maybe Wal-Mart need to recognize that retail has changed, and that customer service does matter and also their reputation.

    I have many friends who have refused to shop there because of all the bad press and I am sure that has affected sales somewhere along the line. If someone has to choose between Target or Wal-Mart, which do they choose?

    I used to live in Salem and Wal-Mart was opposite Target, and I never found anyone that went to that Wal-mart.
     
  3. L_B

    L_B Well-Known Member

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    Wal-Mart treats their employees very poorly. I knew a few people who have worked for them and it was like slave labor. They expect you to do so much for the little bit that they pay you. I have seen the store packed full and they only have two cashiers working. The lines would be so long and they still wouldn't open open another cash. I felt bad for the girls, going non stop and never even get a break but the manager would be yelling at them if he didn't think they were moving fast enough. All the customers would be yelling at them for having had to wait too long. I would have walked out. I couldn't handle being treated that way. I preferred Target over Walmart, too but sadly Target pulled out of Canada after less then a year because of low sales. I wish they had stayed long or given it a chance to turn around.
     
  4. baudwalk

    baudwalk Senior Investor

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    I'm certainly not going to defend employer practices but the Wal-Mart story has been regurgitated for decades. It is tiresome. People, for whatever reason, make the choice to work for Wal-Mart. Wal-Mart is not forcing anyone to work at one of its locations.

    Some people don't like to shop at Wal-Mart. Whether it is a poorly stocked store or poor quality merchandise or long lines or surly employees and managers, whatever the reason(s), what difference does it make? Feet or another chosen mode of transportation can take a would-be customer down the road elsewhere.

    These same points can be made for other retail sectors, whether it be fast food restaurants, convenience stores, auto dealers, service stations or fill-in-the-blank. People have a choice. Perhaps distance and travel time to alternatives are a factor, but then so is everything else. Harumph.
     
  5. petesede

    petesede Guest

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    So everyone can read into this what they want

    1. Their poor worker practices have finally caught up with them
    2. The PR about their worker practices have finally caught up with them
    3. A bunch of states raised minimum wage, which makes many stores very unprofitable now.

    My own opinion, they over-expanded and cannabilized existing stores. Where I live in Ohio, there are 5 that are easy driving distance from my house. They built one smack on the middle of 3 other ones.
     
  6. gracer

    gracer Senior Investor

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    I don't live in the US but in my point of view as an outsider, although I've been hearing a lot of negative things about WalMart I still think it's quiet a loss for all the hundreds of employees affected. It's already hard to find work nowadays so I actually pity the workers who will lose their jobs. As what baudwalk said, it's the worker's choice to have chosen to work there, maybe because of lack of choices so it would really have a big impact on their income once the affected WalMart stores would close.
     
  7. phoenix2015

    phoenix2015 Well-Known Member

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    Online shopping is starting to become more popular. Late adopters, are beginning to realize the benefits of online shopping. Many are starting to shed their distrust of giving out credit card information online and starting to realize that it is actually safe to purchase online with your credit cards. This will, without a doubt, affect traditional bricks and mortar retail stores.
     
  8. Corzhens

    Corzhens Senior Investor

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    Gee, those 154 stores will surely create unemployment although it is scattered in the US territory. My question is this - why would teh stores close, is it due to bankruptcy? I can relate to the story with a franchise of a fastfood here. A colleague bought a franchise and after a year of operation, they decided to close because of poor sales. But going back to that 154 stores, it's hard to imagine a pattern.
     
  9. Rainman

    Rainman Senior Investor

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    Last year, Walmart said wage hikes were killing their profits. Apparently the reason why Walmart and other stores are losing customers is because people who seek better deals try to find them elsewhere either on the net or in stores that sell their products at cheaper prices.
     
  10. Alex

    Alex Senior Investor

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    Out of desperation I have looked at the Wal-Mart site for what I was looking for. Not only were the prices the same or more expensive, most were items that were dropshipped. It wasn't user friendly either, so who would choose to shop online with them?

    Basically Wal-Mart have relied on the lower classes to use their stores, but with so many more outlets, dollar stores, and discount places like Aldi, people don't need Wal-Mart anymore, and finally it has caught up with them.
     

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