Walmart to Cut Four Chicago Locations Due to Financial Struggles
April 12, 2023
Trending News 🌧️
Despite being an international powerhouse, the company has recently announced that it will be closing four of its Chicago locations due to financial struggles. This comes as a shock as Walmart ($NYSE:WMT) has seen an increase in sales throughout the pandemic, yet the company is still feeling the effects of their losses due to the economic downturn. The stores that will be closing are located within the Chicago area, including stores in West Pullman, Logan Square and Kelvyn Park. Despite this, the company has stated that they plan to help those affected by the closures, offering transfers to other stores or cash severance packages.
While this news may come as a disappointment to many, it does not come as a surprise. The company has seen its earnings drop for three consecutive quarters, and with the current economic climate, it was only a matter of time before they had to make difficult decisions. Despite this, Walmart remains committed to helping those affected by this closure and ensuring they are taken care of financially.
Stock Price
On Tuesday, WALMART INC announced that it had made the difficult decision to close four of its Chicago locations due to financial struggles. This news came after WALMART INC’s stock opened at $151.0 and closed at $150.1, a decrease of 0.3% from the prior closing price of $150.5. The closures will come as a result of an overall decrease in sales and profits in recent months, leaving the company no choice but to consolidate. These store closures will affect hundreds of employees who will be laid off and dozens of communities who will be losing a dependable source of groceries and other goods.
WALMART INC may also face potential legal troubles due to the closure of unionized stores, as their collective bargaining agreement may have stipulations regarding layoffs. Though these store closures are unfortunate, they are necessary for WALMART INC to remain financially viable. The company has expressed its hopes that the remaining locations will be able to pick up the slack and that the communities that have been affected by the closures will eventually be able to find an alternative solution. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Walmart Inc. More…
| Total Revenues | Net Income | Net Margin |
| 611.29k | 11.68k | 1.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Walmart Inc. More…
| Operations | Investing | Financing |
| 29.1k | -17.72k | -17.04k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Walmart Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 243.46k | 159.47k | 26.75 |
Key Ratios Snapshot
Some of the financial key ratios for Walmart Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.3% | -0.2% | 3.1% |
| FCF Margin | ROE | ROA |
| 2.0% | 16.1% | 4.9% |
Analysis
GoodWhale has conducted a thorough analysis of WALMART INC‘s financials. We are pleased to report that WALMART INC is a low risk investment in terms of financial and business aspects according to our Risk Rating system. We have identified areas with potential risks and invite you to become a registered user to explore these areas further. Our team is confident that our detailed analysis will allow you to make an informed decision regarding the investing in WALMART INC. More…
Peers
The retail industry is highly competitive, with Walmart Inc competing against Target Corp, Sprouts Farmers Market Inc, and Costco Wholesale Corp. All four companies are vying for market share in the retail sector. Walmart Inc is the largest company in the group, followed by Target Corp, Sprouts Farmers Market Inc, and Costco Wholesale Corp. All four companies are publicly traded on the stock exchange.
– Target Corp ($NYSE:TGT)
Target Corp is an American retail corporation. The company was founded in 1902 and is headquartered in Minneapolis, Minnesota. Target operates 1,851 stores across the United States. The company’s store format includes Target, Target Greatland, and SuperTarget. Target is the second-largest discount retailer in the United States, behind Walmart. The company’s revenue for 2018 was $75.4 billion, and its operating income was $5.9 billion. Target’s net income for 2018 was $3.6 billion, and its total assets were $42.5 billion as of December 31, 2018.
– Sprouts Farmers Market Inc ($NASDAQ:SFM)
Sprouts Farmers Market Inc is a grocery store chain that specializes in selling fresh, natural, and organic food. The company has a market capitalization of $3 billion as of 2022 and a return on equity of 21.14%. Sprouts Farmers Market operates more than 340 stores in 22 states across the United States. The company was founded in 2002 and is headquartered in Phoenix, Arizona.
– Costco Wholesale Corp ($NASDAQ:COST)
Costco Wholesale Corporation is the largest membership warehouse club in the United States. As of 2022, it had a market capitalization of 209.47 billion and a return on equity of 24.62%. Costco Wholesale Corporation is a bulk retailer of food, electronics, and other merchandise. It operates through a chain of membership warehouses in the United States and other countries. Costco Wholesale Corporation was founded in 1976 and is headquartered in Issaquah, Washington.
Summary
Walmart Inc. is the world’s largest retailer, and its stock has been a consistent favorite among investors. Despite the recent news of Walmart closing four stores in Chicago due to mounting losses, the company’s financial performance is still strong.
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