- Walmart introduced this week that it’s closing 4 shops in Chicago in a matter of days.
- Elected officers mentioned that the choice to shut the shops “worsens meals deserts” within the space.
- Walmart has closed dozens of shops nationwide this yr, citing “underperformance” as a difficulty.
Walmart’s choice to shutter 4 Chicago shops has drawn ire of elected officers representing the Windy Metropolis.
In a uncommon press launch on April 11 asserting retailer closures, Walmart mentioned bluntly that these shops “haven’t been worthwhile since we opened the primary one almost 17 years in the past.”
“These shops lose tens of hundreds of thousands of {dollars} a yr, and their annual losses almost doubled in simply the final 5 years,” the corporate mentioned. “The remaining 4 Chicago shops proceed to face the identical enterprise difficulties, however we expect this choice offers us the very best probability to assist maintain them open and serving the group.”
Chicago Mayor Lori Lightfoot mentioned in an announcement she was “extremely upset” by the choice.
“Unceremoniously abandoning these neighborhoods will create obstacles to fundamental wants for 1000’s of residents,” Lightfoot mentioned. “Whereas near-term preparations will likely be made for staff, I concern that many will discover that their long-term alternatives have been considerably diminished.”
In its announcement, Walmart mentioned all affected retailer workers could be assisted in transferring to another Walmart or Sam’s Membership location, and that those that don’t switch will likely be paid till August 11. Further severance advantages will likely be obtainable to eligible workers after that point.
Illinois’ layoff legislation — broader in scope than the federal WARN Act — requires many giant employers to offer 60 calendar days’ discover earlier than a location closure that’s anticipated to lead to 75 or extra job losses. Walmart usually does file advance discover the place required.
Employers who shut with out full discover could also be accountable for paying staff for as much as 60 days, however Walmart seems to go effectively past overlaying that interval; it is going to present 17 weeks of wages for many who do not switch to different shops.
Walmart declined to touch upon whether or not it’s offering comparable wage extensions for staff at different closing shops, together with elsewhere in Illinois.
Native lawmakers in the meantime have expressed alarm over the swift closures — Walmart is shutting the shops 5 days after its announcement — and the impression on communities the place customers depend on Walmart for on a regular basis necessities.
A coalition that features two state representatives, a state senator, and incoming and present members of the Chicago Metropolis Council known as the transfer “unethical” in an announcement.
“The communities of the South and West sides of Chicago have already been fighting elevated meals prices because of inflation,” the coalition mentioned. “Walmart’s choice to shut 4 shops in predominantly Black and Brown communities not solely worsens meals deserts, however may even enhance grocery prices for households.”
—Robert Peters (@RobertJPeters) April 12, 2023
Consumers at these shops have echoed these issues. Regina Dickey, a 38-year-old Chicago resident who shopped on the Walmart Supercenter at 8431 S. Stewart Ave., instructed the Chicago Solar-Instances this week that “it is like (Walmart) did not even give a thought to the individuals in these communities.”
Walmart is not a stranger to retailer closures this yr. Since February, the retail big has introduced plans to shut 19 retail places throughout 11 states and Washington D.C.
The transfer represents a retreat of an aggressive city enlargement Walmart made lately. The corporate doesn’t function any shops in New York Metropolis, and with these closures in Chicago, Walmart is halving its footprint within the third largest metropolis in the US.
The 4 Walmart shops closing in Chicago
- Chatham Supercenter, the Walmart Well being heart, and the Walmart Academy, 8431 S. Stewart Ave.
- Kenwood Neighborhood Market, 4720 S. Cottage Grove Ave.
- Lakeview Neighborhood Market, 2844 N. Broadway St.
- Little Village Neighborhood Market, 2551 W. Cermak Highway
