For a long time, we’ve talked about the decline of indoor shopping malls. These malls, once crucial to the American economy, are closing down. Many retailers, like JC Penney, Macy’s, Express, and Rue21, relied on these malls for foot traffic. They are now either bankrupt, closing stores, or both.
It’s not just malls that are struggling. Due to COVID, people changed their shopping habits permanently, although we didn’t realize it then.
Now, about one-third of Americans get groceries delivered online. Many people also buy other items from online stores with fast and free shipping. With over 200 million Amazon Prime members, it’s clear that companies with strong online operations are thriving. Meanwhile, underperforming strip malls and foot traffic-reliant areas are struggling more.
Walmart Closing Underperforming Stores
Some parts of the U.S. have been hit harder than others. While Walmart’s online operations are thriving, some areas are not recovering well after COVID. In 2023, Walmart closed 24 stores, more than the originally planned 15. These closures affected 14 states and Washington, D.C. Illinois was hit hardest, with four stores closing in Chicago and eight across the state.
In 2024, Walmart closed more stores, including two in California. In April, Walmart also announced it would close all 51 of its health centers and end its health division. “We determined there is not a sustainable business model for us to continue,” Walmart said.
Closing Stores and Auctioning Inventory
In February, Walmart announced it would close a store in Columbus, Ohio, after it “failed to meet financial expectations.” This store, at 3579 S. High St., decided not to renew its lease. The strip plaza, once busy, also has a Kroger, H&R Block, Ollie’s Bargain Outlet, a furniture store, and several fast food restaurants.