BENTONVILLE, Ark. (Jan. 20, 2016) — Wal-Mart Stores Inc.'s plan to close 154 stores in the U.S. includes six Walmart store locations with Tire & Lube Express (TLE) and one Sam's Club with tire services.
Wal-Mart announced Jan. 15 it is closing 269 stores globally, including 154 in the U.S. Among the U.S. stores are 102 Walmart Express locations, a smaller store concept the retailer has been trialing since 2011.
The Walmart Super Centers with Tire & Lube Express slated to close are in: Fairfield, Ala.; Bedford, Ohio; and Austin, Brownsville, Houston and Raymondville, Texas. The Sam's Club location with tires is in Fall River Mass.
Wal-Mart determined which stores to close following a review of the company's nearly 11,600 worldwide stores that took into account a number of factors, including financial performance as well as strategic alignment with long-term plans.
The impacted stores represent less than 1 percent of both global square footage and revenue, Wal-Mart said, but affect approximately 16,000 employees, about 10,000 of them in the U.S.
“Actively managing our portfolio of assets is essential to maintaining a healthy business,” said Doug McMillon, president and CEO, Wal-Mart Stores.
“Closing stores is never an easy decision, but it is necessary to keep the company strong and positioned for the future. It's important to remember that we'll open well more than 300 stores around the world next year. So we are committed to growing, but we are being disciplined about it.”
Wal-Mart said it will continue to invest in its future, with plans to open stores worldwide in the coming fiscal year, including 50 to 60 Supercenters, 85 to 95 Neighborhood Markets and seven to 10 Sam's Clubs in the U.S. in fiscal 2017.
The Bentonville-based company estimates the financial impact of the closings at about 20 to 22 cents of diluted earnings per share from continuing operations.