As Walmart announced Tuesday that it intends to close four of Chicago's eight stores by Sunday, the company made a revealing confession: Walmart's Chicago stores are not profitable, nor have they been since they opened nearly two decades ago.
"Today we have made the difficult decision to close four of our stores in Chicago," the announcement begins. It then goes on to say, "we know the community will have questions about why we are closing these locations."
"The simplest explanation is that collectively our Chicago stores have not been profitable since we opened the first one nearly 17 years ago," Walmart's announcement continues. "These stores lose tens of millions of dollars and year, and their annual loses nearly doubled in just the last five years."
According to the company, four Chicago Walmart locations -- Neighborhood Markets in Kenwood, Lakeview and Little Village, as well as a Supercenter, Health Center and Walmart Academy in Chatham -- will close their doors by April 16.
According to the announcement, Walmart tried a number of "different strategies to improve the business performance" of the Chicago locations, including investing "hundreds of millions of dollars in the city," upgrading stores and creating a Walmart Academy Training Center.
However, none of the efforts "materially improved the fundamental business challenges" the stores face, the announcement reads.
"Community and city leaders have been open and supportive as we met with them over the years to share these challenges," the announcement continues. "As we looked for solutions, it became even more clear that for these stores, there was nothing leaders could do to help get us to the point where they would be profitable."
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Mayor Lori Lightfoot responded to the announcement, saying in an emailed statement she is "incredibly disappointed" that the company will be closing locations on the South and West sides of the city.
"Unceremoniously abandoning these neighborhoods will create barriers to basic needs for thousands of residents," the statement read. "While near-term arrangements will be made for workers, I fear that many will find that their long-term opportunities have been significantly diminished."
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Lightfoot also called on Walmart "to ensure that these soon-to-be-closed stores are repurposed with significant community engagement so they can find a new use to serve their neighborhoods."
Walmart says it will work with local leaders to help find reuse options for their buildings, "so they remain important parts of their communities." The company also says it intends to donate to the community the Walmart Academy building, "to help further strengthen Chatham and the surrounding neighborhoods."
The closures leave four Chicago stores remaining: Auburn Gresham Neighborhood Market at 7535 S. Ashland Ave., Hermosa Neighborhood Market at 4650 W. North Ave., Walmart Supercenter in Pullman at 10900 S. Doty Ave., and the Belmont Gardens Neighborhood Market at 2844 N. Broadway St.
"The remaining four Chicago stores continue to face the same business difficulties, but we think this decision gives us the best chance to help keep them open and serving the community," Walmart's announcement read.
Earlier this year, Walmart closed three suburban Chicago stores, in Homewood, Lincolnwood and Plainfield.
