Walmart 2023 Closings

[ClownLoach]

Walmart converted several old stores into Supercenters in the San Jose and Milpitas, California areas. They are tiny and cramped. They are too small to support such crowds. The shopping experience is claustrophobic and it is difficult for employees to restock the store.

Perhaps a better model would be for a non-supercenter with an expanded selection of groceries. Adding a mediocre Deli, Bakery, is not needed. It just takes up space and makes it a mess.

The "Irvine" location that is surrounded by Tustin had its deli and bakery removed to make more walk-in refrigeration space and storage for curbside orders.

[mjhale]

Walmart converted several old stores into Supercenters in the San Jose and Milpitas, California areas. They are tiny and cramped. They are too small to support such crowds. The shopping experience is claustrophobic and it is difficult for employees to restock the store.

Perhaps a better model would be for a non-supercenter with an expanded selection of groceries. Adding a mediocre Deli, Bakery, is not needed. It just takes up space and makes it a mess.

The "Irvine" location that is surrounded by Tustin had its deli and bakery removed to make more walk-in refrigeration space and storage for curbside orders.

Certainly Walmart must have some data about deli and bakery operations in rural versus suburban/urban areas. In rural areas where there is likely only one traditional grocery store in town plus Walmart, the Walmart deli and bakery options seem to be more extensive. Specifically in the deli, it is well staffed and they actually cut the meats and cheeses fresh for you as well as consistently having fried chicken, nuggets and some sides in the hot case. In more suburban and urban areas where Walmart competes with multiple traditional grocers, is there an actual need for a service deli and bakery at Walmart? The Supercenter nearest me has a service bakery. Most of the product is thaw and serve. There is some baked in store but that stuff comes in frozen from what I can see. There are three Supercenters in my general area that do not have service bakery and deli. All three have a small area in the back room where they bake some of the breads in store. Their deli selection is standard refrigerated deli. They do have some pre-sliced Prima Della. One of these Supercenters is a former Home Depot Expo Design Center. At the most the store is 80,000 sq feet. Walmart cut back in areas outside food, HBA and electronics to give more space to the food section. Perhaps this is the way to go in areas that won't support a full size Supercenter instead of having multiple non-prototype stores. That sounds like Target with all of their non-standard small size stores. There have got to areas that people just don't shop in suburban and urban areas that can de removed to make space for the food section to come as close to or be a Supercenter. This all assumes that food continues to be a draw and profit center for Walmart.

[rwsandiego]

... of these Supercenters is a former Home Depot Expo Design Center. At the most the store is 80,000 sq feet. Walmart cut back in areas outside food, HBA and electronics to give more space to the food section...

Sounds a lot like the Encinitas, California location. There wasn't anyplace for Walmart to build, and the Home Depot Expo building was the biggest available box. It was one of the few Walmarts in San Diego that I could stand shopping at.

[ClownLoach]

... of these Supercenters is a former Home Depot Expo Design Center. At the most the store is 80,000 sq feet. Walmart cut back in areas outside food, HBA and electronics to give more space to the food section...

Sounds a lot like the Encinitas, California location. There wasn't anyplace for Walmart to build, and the Home Depot Expo building was the biggest available box. It was one of the few Walmarts in San Diego that I could stand shopping at.

Difference is Encinitas is profitable. Very well curated assortment for the neighborhood, on a street where most retailers do amazing volumes as they serve the wildly expensive neighborhood of Rancho Santa Fe. If you're not familiar with the area, let's just say it makes Beverly Hills and Bel Air estates look like shacks.

[J-Man]

Walmart Supercenter in West Covina, CA (two-level store in a former Mervyn's) is closing at the end of March.

[ClownLoach]

Walmart Supercenter in West Covina, CA (two-level store in a former Mervyn's) is closing at the end of March.

Just drove past that and wondered how that oddball store did sharing the same center as Target. Now we know.

[storewanderer]

Walmart Supercenter in West Covina, CA (two-level store in a former Mervyn's) is closing at the end of March.

Just drove past that and wondered how that oddball store did sharing the same center as Target. Now we know.

I don't think they want 2 level stores... one of these in Sacramento closed a while ago.

[Brian Lutz]

Sounds a lot like the situation at Factoria (Bellevue WA), where a Walmart went into a former Mervyn's space (single level, about 70k SF) next door to an existing Target. The Walmart store was small (probably the smallest "Supercenter" store I've seen), awkward, and did poorly enough that they didn't bother renewing their initial 10 year lease when it came up. The Target store was there long before Walmart moved in, and remains there after Walmart came and went.

[ClownLoach]

Sounds a lot like the situation at Factoria (Bellevue WA), where a Walmart went into a former Mervyn's space (single level, about 70k SF) next door to an existing Target. The Walmart store was small (probably the smallest "Supercenter" store I've seen), awkward, and did poorly enough that they didn't bother renewing their initial 10 year lease when it came up. The Target store was there long before Walmart moved in, and remains there after Walmart came and went.

Yes. Similar oddball centers too. I wonder how many more of these smaller format "Walmart in a Mervyn's" stores survive. Torrance? Imperial Beach?

Walmart has to get their California fleet "normalized" and out of these weird buildings that complicate their operations and skew their brand image. They were too desperate to get into the state and accepted whatever was available. They have zero consistency in California and I think that is becoming a real problem for them.

[storewanderer]

The old saying... don't go where you aren't wanted... comes to mind.

The "normal" structure and size Wal Marts in California do great. I'll be curious how many of their new stores will be in CA and what type of opposition occurs this round.

These odd buildings, stores in poor locations, oddly sized stores that make little sense in flow or mix, not so much. I agree they need to exit these stores and they're better off not being there at all.