For decades, Walmart has stood as the cornerstone of American retail — a place where millions of families shopped for everything from groceries and clothing to electronics and back-to-school supplies. Known for its low prices and wide selection, the company has built an empire that spans nearly every corner of the United States. But in 2025, a major announcement from the retail giant caught the attention of shoppers, employees, and economists alike: Walmart will be closing 22 retail locations across the country this year, including four stores in Chicago.
The company explained that the closures are due to poor financial performance in specific areas and are part of a broader strategy to optimize its operations for the changing retail landscape. With this move, Walmart joins a growing list of major companies reevaluating their physical store presence in the face of rising online shopping trends and shifting consumer behaviors.
A Strategic Restructuring Across the Country
On Monday, Walmart confirmed that its Richmond, Virginia location, situated on Brook Road, will be among the next stores to shut down, with operations officially ending on July 28.
In an official statement to Insider, Walmart spokesperson Felicia McCranie expressed gratitude to the local community:
“We are grateful to the customers who have given us the privilege of serving them at our Brook Road Neighborhood Market location.”
While the company has not publicly released the full list of affected stores, it emphasized that each closure was the result of a careful review of store performance metrics, customer foot traffic, and long-term profitability.
Why Walmart Is Closing These Stores
The decision to close stores is not an isolated event — it’s a response to changing consumer patterns that are reshaping the global retail environment. As more people embrace e-commerce, big-box retailers like Walmart are being forced to adapt.
In recent years, Walmart has heavily invested in digital transformation, expanding online delivery, pickup services, and same-day shipping options. This has been part of its broader effort to compete with Amazon, which continues to dominate the online marketplace.
However, maintaining underperforming physical locations has become increasingly difficult. Real estate costs, supply chain adjustments, labor shortages, and fluctuating consumer spending have all contributed to certain stores struggling to stay profitable.
According to several industry experts, Walmart’s closures are part of a larger strategic plan to refocus resources on stores and regions that show higher growth potential.
Retail analyst Marianne Brooks, speaking with Retail Insight Weekly, explained:
“What Walmart is doing is not retreat — it’s realignment. The company is streamlining operations to strengthen its position in key markets while accelerating its growth online.”
The Changing Nature of Shopping in America
In the past decade, American shopping habits have undergone a transformation. Convenience, price comparison, and speed have become the new priorities for consumers. Mobile apps and one-click checkout options have redefined the shopping experience.
The COVID-19 pandemic accelerated this change. Millions of Americans who once relied on in-store shopping began ordering groceries, electronics, and household goods online. That behavioral shift never fully reversed.
Even as the economy reopened, online sales remained strong, and companies that could adapt — like Walmart — began focusing more on digital infrastructure than physical expansion.
In fact, while closing some stores, Walmart continues to expand its e-commerce distribution centers and improve its logistics networks across the country. This strategy allows the company to serve customers faster, even if fewer stores exist in certain neighborhoods.
Impact on Local Communities
The closure of Walmart locations, however, carries significant consequences for local communities. In many small towns and urban neighborhoods, Walmart serves not only as a retail hub but also as a vital source of employment and affordable goods.
When a Walmart closes, it often leaves a gap that smaller businesses struggle to fill. For employees, it means job uncertainty. For customers, it can mean longer drives or fewer shopping options — especially in low-income neighborhoods where Walmart might have been one of the few accessible grocery stores.
Residents near the soon-to-close Richmond store expressed mixed emotions. Some understand the business rationale, while others feel blindsided.
Local resident James Turner told reporters:
“Walmart has been part of this community for years. It’s where my family shops, and my daughter works here part-time. It’s hard to see it go.”
The company has assured workers that it will offer transfers to nearby Walmart locations where possible and provide assistance during the transition. In addition, customers are encouraged to continue using Walmart’s online shopping services, including delivery and curbside pickup from nearby stores.
Walmart’s Broader Business Focus
Despite the closures, Walmart remains financially strong and focused on the future. The company continues to expand in other areas, including technology, sustainability, and automation.
In 2025, Walmart has been investing heavily in artificial intelligence tools to improve inventory management, reduce waste, and enhance supply chain efficiency. It is also working to expand its Walmart+ membership program, offering faster delivery, fuel discounts, and streaming service perks to compete directly with Amazon Prime.
Walmart’s CEO Doug McMillon has been clear about the company’s long-term strategy:
“We’re not shrinking — we’re evolving. Our customers are shopping differently, and we’re meeting them where they are.”
This evolution includes the development of smaller-format stores and automated fulfillment centers, both of which are designed to lower operational costs while serving digital and physical customers more effectively.
The National Trend of Store Closures
Walmart is not alone in its decision to scale back. Across the retail sector, companies from Walgreens to Target and Macy’s have also announced closures, each citing a similar mix of challenges: inflation, theft, reduced foot traffic, and digital competition.
Industry data suggests that more than 3,000 retail stores are expected to close across the United States in 2025. Many of these closures are occurring in urban areas, where operating costs are high and online shopping has become dominant.
Experts say this represents a shift, not a decline, in retail. Consumers are still spending, but the way they spend has fundamentally changed.
As retail consultant David Langford notes:
“Physical stores aren’t disappearing — they’re being redefined. The future of retail isn’t about having the most stores; it’s about creating the smartest network between digital and physical experiences.”
How Walmart Plans to Support Shoppers
While closing locations may create challenges for some shoppers, Walmart is working to maintain convenience through enhanced online accessibility. The company has expanded its same-day delivery program to cover more ZIP codes than ever before and has improved its website’s user experience with better product recommendations, personalized offers, and seamless mobile integration.
Additionally, Walmart has announced plans to partner with third-party delivery services to ensure customers can still access affordable groceries and essentials, even in areas affected by store closures.
In many regions, the company is also expanding Walmart Health centers and pharmacy services, showing that while traditional retail space may shrink, Walmart’s role in local communities is far from over.
Adapting to the Future: A Digital-First Walmart
The company’s shift to a digital-first business model represents a major cultural and operational transformation. Instead of focusing primarily on brick-and-mortar dominance, Walmart is channeling billions into advanced technology — from automated warehouses to drone delivery experiments.
By integrating artificial intelligence into logistics and predictive inventory systems, Walmart can anticipate consumer demand, reduce waste, and ensure timely delivery. The company has also strengthened its partnership with technology firms to modernize supply chain infrastructure.
This digital focus reflects Walmart’s determination to stay competitive in the next decade, where e-commerce and data-driven personalization will define success.
Conclusion: A Retail Giant Reinventing Itself
Walmart’s decision to close 22 stores may seem like a setback to some, but it is, in truth, a strategic pivot in an ever-evolving retail world. The closures reflect a broader reality — that the future of shopping lies in flexibility, technology, and consumer-focused innovation.
While the loss of local stores will certainly impact some communities, Walmart’s ongoing investment in online retail, digital transformation, and community partnerships ensures it remains a vital part of American life.
From rural towns to major cities, Walmart continues to adapt — not retreat. Its mission, as CEO Doug McMillon reminds employees and customers alike, remains unchanged:
“To help people save money and live better — no matter how they shop.”
As 2025 unfolds, Walmart’s restructuring offers a powerful lesson for the global retail industry: success today requires not just scale, but smart adaptation. And in that sense, Walmart isn’t just closing stores — it’s opening the door to the next era of retail.