Walmart To Close Half Its Stores In Chicago
Walmart announced that it will be closing four of its eight stores in Chicago, citing years of profit loss in the city.
The company explained its decision to close half of its Chicago stores via a press release on its website. Walmart stated that all stores in Chicago have not been profitable since opening 17 years ago. The company also stated that while their remaining four stores are still losing money, they will remain open in an effort to help the community.
“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. 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 Press Release
Over the years, Walmart has ramped up its efforts to help stabilize the communities around their Chicago stores. During the Black Lives Matter riots of 2020, the company pledged $100 million to “advancing racial equity.” Walmart CEO Doug McMillion stated in 2021 that, “Chicago will be an example of what’s possible when we leverage business, government and community organizations for the good of all.”
However, when BLM riots peaked in the summer of 2020, Walmart temporarily closed all its stores in Chicago due to theft and vandalism. The decision worried many in the city that the company would eventually close their stories permanently.
The decision to close these stores is part of a broader movement Walmart has made to close stores in high-crime, low-profit areas. Last month, Walmart made a controversial decision to close all of its stores in Portland. Many speculated that the decision was likely due to the rampant shoplifting and lack of law enforcement in the city.
The reason businesses are moving out of liberally-ran urban areas is simple: crime rates have skyrocketed. Companies like Walmart are moving away from high-crime areas and are losing money because of the lack of law enforcement in these communities. Big cities like Chicago, Portland, Los Angeles, Oakland, and others have become increasingly dangerous as city leaders refuse to enforce the law and increase policing. Because of this, businesses do not want to invest resources in these areas. As a result, residents of these areas have fewer job opportunities and less access to affordable goods.
It is for these reasons that conservatives argue the best way to bring safety and economic stability to low-income neighborhoods is to increase policing and enforce existing laws. Creating communities that incentivize businesses to thrive is the best solution to lifting more people out of poverty.
