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IPFS News Link • Business/ Commerce

Walmart Abandons Unprofitable Chicago Stores After Investing "Hundreds Of Millions" In Cit

• https://www.zerohedge.com by Tyler Durden

"The simplest explanation is that collectively our Chicago stores have not been profitable since we opened the first one nearly 17 years ago – these stores lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years," Walmart wrote in a press release

Indeed, Walmart has soured on Chicago - the Democratic stronghold that went from a once beautiful metro area into an absolute hellhole. According to Walmart, the decision came after considerable investment in the town.

"Over the years, we have tried many different strategies to improve the business performance of these locations, including building smaller stores, localizing product assortment and offering services beyond traditional retail. We have invested hundreds of millions of dollars in the city, including $70 million in the last couple years to upgrade our stores and build two new Walmart Health facilities and a Walmart Academy training center." 

That said, the company hasn't lost all faith in the city but is willing to take a loss with the four remaining stores: 

"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."

It sure wouldn't be good PR if Walmart left the metro area entirely. 


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