Walmart to shut down 269 stores

The financial impact of these closures is estimated to be approximately $0.20 to $0.22 of diluted earnings per share from continuing operations, with approximately $0.19 to $0.20 expected to impact the fourth quarter of fiscal 2016. The remainder of the impact will fall into the first half of fiscal 2017. Approximately 75 per cent of the impact relates to US closings and the remaining portion involves Walmart International, with a large majority of the international impact relating to the closures in Brazil.

The company further said that approximately 16,000 associates or employees would be impacted by the decision, about 10,000 of them in the US but would be compensated. More than 95 per cent of the closed stores in the U.S. are within 10 miles on average of another Walmart, and “the hope” is that these associates will be placed in nearby locations. Where that isn't possible, the company will provide 60 days of pay and, if eligible, severance, as well as resume and interview skills training. Whether with Walmart or elsewhere, the company's objective is to help all associates find their next job opportunity.

“The decision to close stores is difficult and we care about the associates who will be impacted,” McMillon said. “We invested considerable time assessing our stores and clubs and don't take this lightly. We are supporting those impacted with extra pay and support, and we will take all appropriate steps to ensure they are treated well.” (SH)

ALCHEMPro News Desk - India