Walmart will open 150 stores across the United States over the next five years, a major expansion push for the retail giant.
The company said the move, which it announced in a statement on Wednesday, would require millions of dollars in investments. Walmart employs about 1.6 million people in the United States and says it hires hundreds every time it opens a new store.
Walmart had just over 4,600 stores nationwide at the end of October 2023, up from over 4,700 a year earlier. The company has not opened a new US store since the end of 2021.
Most of the stores Walmart plans to open will be new construction, while others will involve converting existing locations into new formats. The first two new stores will open in Florida and Georgia this spring, and the company is finalizing construction plans for 12 additional stores this year. It was also said that 650 locations would be redesigned.
Walmart said this week that it is increasing pay and benefits for store managers and offering them stock grants.
The company reported significantly higher profit in the first three quarters of 2023 and its share price is near a record high. No earnings have yet been announced for the final quarter, which would also include the holiday season.
Consumer spending, which drives the U.S. economy, proved resilient even as consumers are pressured by high inflation and rising interest rates. Credit card data from the holiday season showed retail sales increased compared to last year.
“This is a huge vote of confidence for the American consumer,” Craig Johnson, founder of retail consultancy Customer Growth Partners, said of Walmart’s announcement.
Mr. Johnson said investors may worry about what impact this could have on Walmart’s Sam’s Club stores, which have increasingly shifted from a destination for business owners stocking up on supplies to a place where individuals go for groceries shopping.
Walmart’s decision to open new stores and remodel some existing ones reflects the company’s focus on improving its shopping and pickup experience even as e-commerce becomes increasingly popular, said Edward Yruma, an analyst at investment bank Piper Sandler.
“As we adjust to the new normal, we have concluded that the consumer likes great, physical retail locations,” he said.
Jordyn Holman contributed reporting.
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2024-01-31 15:17:18
www.nytimes.com
