Walmart Closes Four Stores In Chicago Amid Elevated Crime Rates

Walmart announced the closure of four stores in Chicago, Illinois, due to poor performance at the locations as the city experiences increasing crime rates. The retail giant said that the four locations have been unprofitable since their opening nearly 17 years ago, with annual losses doubling over the past five years. Efforts to improve the stores’ performance, such as building smaller stores, localizing product assortment, and offering services beyond traditional retail, have not helped. Associates at the affected locations will be allowed to transfer elsewhere. Walmart will continue to seek solutions to address racial inequality and food scarcity in Chicago.

Walmart’s decision to close the stores comes after the firm closed its last two stores in Portland, Oregon. Walmart CEO Doug McMillon cited an increase in shoplifting, saying that “stores will close” if the issue is not resolved by city officials. Lawlessness in Chicago has risen intensely over the past four years, with 490 homicides in 2019 and 772 and 800 in 2020 and 2021, respectively. Mayor Lori Lightfoot has proposed cutting $80 million from the Chicago Police Department budget, while Cook County Commissioner Brandon Johnson, who supports defunding the police, was elected as the next mayor of Chicago in a relatively close race.

The announcement of the Walmart closures comes on the same day reports revealed that the Democratic National Committee chose Chicago as the host city for the 2024 convention, at which President Joe Biden is expected to secure the nomination for his second term.