Walmart, the nation’s retail giant, is set to close 22 stores across the United States in 2025, citing financial underperformance at each location. This announcement comes as part of the company’s ongoing strategy to optimize operations, streamline its store network, and adjust to changing shopping habits in an increasingly digital retail environment.
Among the closures are four stores in Chicago, highlighting the retailer’s focus on markets where locations have consistently struggled to meet performance expectations. Walmart confirmed that its Brook Road Neighborhood Market in Richmond, Virginia, will close on July 28, 2025, as part of the broader reduction. Felicia McCranie, a Walmart spokesperson, expressed appreciation for the local customers:
“We are grateful to the customers who have given us the privilege of serving them at our Brook Road Neighborhood Market location,” McCranie stated in an email to Insider.
The closures mark a significant development in the retail landscape and have implications for employees, local economies, and shoppers who rely on Walmart for daily goods and essentials.
Why Walmart Is Closing Stores
While Walmart remains one of the largest retailers in the world, with thousands of stores across the U.S., the company continually reviews its store portfolio to ensure each location is financially viable. Stores that consistently underperform may face closure as part of a broader strategy to improve efficiency and profitability.
Factors contributing to these closures include:
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Declining Foot Traffic: Many stores, especially in urban areas, have seen fewer in-person shoppers due to competition from online retailers and changing consumer behavior.
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Financial Underperformance: Stores failing to meet revenue targets or operating profit margins are at risk of closure.
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Market Saturation: In regions with multiple Walmart stores in close proximity, consolidation can reduce redundancy.
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Operational Costs: Rising labor, utility, and property costs can make certain stores less sustainable.
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Shift to E-Commerce: Walmart has been investing heavily in online shopping, home delivery, and curbside pickup, reducing reliance on some physical locations.
These factors suggest that closures are a business decision rather than a reflection on the brand’s overall success. Walmart remains financially strong, continuing to innovate in online retail and expand its services.
The Chicago Closures
Chicago is set to lose four Walmart locations as part of the 2025 closures. While Walmart has not disclosed the specific stores within the city, the company cited poor financial performance at each location.
These closures will likely impact employees, who may be offered transfers to nearby stores or severance packages, depending on local policies and union agreements. Shoppers in affected areas may need to seek alternative stores for groceries, household goods, and other essential purchases.
The closures underscore the challenges faced by large retailers operating in urban areas, where rent, labor, and competition from smaller neighborhood stores and online platforms can reduce profitability.
Richmond, Virginia: A Case in Point
One of the first confirmed closures for 2025 is the Brook Road Neighborhood Market in Richmond, Virginia, scheduled for July 28. The store has served the local community for years, providing groceries, household items, and everyday essentials.
Spokesperson Felicia McCranie expressed gratitude to customers in Richmond, highlighting Walmart’s ongoing commitment to community engagement despite necessary closures. This sentiment is consistent with Walmart’s broader messaging during store shutdowns, emphasizing appreciation for local shoppers while navigating operational challenges.
Economic Impact of Store Closures
The closure of Walmart stores can have several economic effects:
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Job Losses: Employees at closed stores may face layoffs or transfers, creating immediate employment concerns.
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Local Business Ecosystems: Walmart locations often anchor shopping areas. Closure can reduce foot traffic to nearby small businesses.
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Property Market Effects: Vacant retail spaces can temporarily affect local commercial real estate dynamics.
However, Walmart generally implements closure plans gradually, offering employees support and ensuring that essential services in surrounding areas remain accessible. In many cases, closures are part of a broader strategy to maintain long-term sustainability for the company and its workforce.
How Walmart Plans to Support Employees
When stores close, Walmart typically implements strategies to minimize disruption:
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Job Transfers: Eligible employees may transfer to nearby Walmart locations to continue employment.
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Severance Packages: Employees who cannot be relocated often receive severance or support services.
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Retraining Programs: Walmart sometimes offers training programs to help employees adapt to new roles within the company.
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Community Support: Corporate communications emphasize assistance to impacted customers and local communities, particularly in providing information about alternative stores or online shopping options.
These measures demonstrate Walmart’s approach to corporate responsibility while addressing the practical consequences of store closures.
Trends in Retail: Why Physical Stores Are Closing
Walmart’s closures reflect broader trends in the retail industry, where brick-and-mortar stores are increasingly evaluated for profitability in the digital age.
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E-Commerce Growth: Online shopping continues to grow, with platforms like Amazon and Walmart.com capturing significant market share.
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Changing Consumer Preferences: Shoppers increasingly prefer curbside pickup, home delivery, and one-stop online shopping.
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Operational Efficiencies: Retailers are consolidating physical locations to reduce overhead while investing in logistics, technology, and digital infrastructure.
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Urban Challenges: High rent, traffic congestion, and competitive pressures in city markets can reduce the profitability of certain stores.
Retailers like Walmart are balancing the need for physical presence with the cost and efficiency of digital operations, resulting in selective closures of underperforming locations.
National List of Closures (Partial)
While Walmart has announced that 22 stores will close in 2025, the full list is still being finalized. Confirmed closures include:
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Richmond, Virginia – Brook Road Neighborhood Market (closing July 28, 2025)
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Four stores in Chicago, Illinois (specific locations TBD)
Additional closures are expected across other U.S. cities. Walmart has emphasized that decisions are based on store performance metrics and not due to lack of customer loyalty.
Tips for Shoppers Affected by Store Closures
Customers who rely on closing Walmart stores can take several steps to minimize disruption:
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Locate Nearby Stores: Use Walmart’s store locator to find alternative locations within driving distance.
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Explore Online Options: Walmart.com offers grocery delivery, home delivery, and curbside pickup for most products.
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Track Promotions: Nearby stores may offer promotions or loyalty incentives to support shoppers affected by closures.
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Community Resources: In urban areas, local community groups may provide support or information about alternative shopping options.
By preparing in advance, shoppers can continue accessing essential goods despite local store shutdowns.
Walmart’s Strategy Moving Forward
Despite the closures, Walmart remains a dominant force in U.S. retail. The company is focusing on several strategic initiatives:
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Expanding E-Commerce Capabilities: Enhancing Walmart.com, mobile apps, and online grocery delivery services.
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Streamlining Store Operations: Closing underperforming stores to focus resources on profitable locations.
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Investing in Technology: Automation, AI, and logistics improvements to support digital and physical retail integration.
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Community Engagement: Supporting local communities through grants, employee programs, and customer outreach.
These strategies indicate that Walmart is adapting to the modern retail environment while maintaining its core mission of providing low-cost goods to customers nationwide.
Conclusion
Walmart’s announcement of 22 store closures in 2025 highlights the evolving nature of retail in the United States. Financial performance, changing consumer habits, and urban market dynamics all contribute to these decisions.
While closures may temporarily impact employees and local shoppers, Walmart continues to invest in both its digital and physical operations, seeking long-term sustainability. Customers are encouraged to explore nearby stores, online options, and available services to ensure uninterrupted access to groceries and essential products.
As Walmart navigates these changes, the closures underscore a broader trend in retail: the balance between brick-and-mortar presence and digital innovation, with companies needing to remain agile to meet modern consumer expectations.