Global distribution giant Walmart is once again betting on brick-and-mortar stores in the era of booming e-commerce. The company announced Wednesday that it plans to build or convert more than 150 establishments in the United States in the next five years, while continuing a program of renovation and remodeling of existing facilities.
The group, headquartered in Bentonville (Arkansas), is absolutely dependent on the development of the US economy. The company has 1.6 million direct employees in the country and has more than 3,900 stores in all 50 states, Washington and Puerto Rico. Walmart US net sales were $420.6 billion in fiscal year 2022-2023, representing 69% of the group's total. It is not only the business unit with the highest turnover, but also the most profitable.
The expansion plan for physical stores comes after nearly three years of pause in this regard, partly due to the pandemic and partly due to the decision due to changes in consumer habits. Walmart already announced in 2016 that it was pausing new openings to invest in its online sales and technology efforts and redesign existing stores.
However, the company has noted that when it comes to shopping, especially when it comes to food, the majority of consumers continue to go to stores. Walmart has also attracted high-income customers in an inflationary environment where buyers are very careful about what they spend. The company still has problems with e-commerce, where it leads Amazon, but it is also moving forward with greater integration between the virtual store and physical stores, which it uses to fulfill online orders and as collection points.
The new openings were announced by John Forner, President and CEO of Walmart US. In addition to the openings, he announced renovations to a large portion of existing stores: “In the next 12 months, we plan to redesign 650 stores in 47 states and Puerto Rico, which means creating tens of thousands of jobs in these projects. This is in addition to the hundreds of jobs created.” We'll provide it to the community every time we open a new store.These jobs come with amazing perks, like free college tuition from day one, flexible schedules, and competitive paid time off. He stated in a statement.
The first two stores of the 150-store plan will open their doors this spring in Santa Rosa Beach (Florida) and Atlanta (Georgia). Walmart is also finalizing construction plans for 12 new projects it plans to break ground this year, along with converting one of its smaller stores into a Walmart Supercenter, a hypermarket.
Its new and remodeled stores will reflect Walmart's new “Store of the Future” concept, with improved layout, design, broader product selection and innovative technology to help workers better serve customers and make purchasing more convenient for them, according to Forner.
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