Walmart Is Closing Stores!

Earlier today, I was reading a business insider article that surprised me and piqued my interest. Walmart is closing eight stores in total but one in Louisiana, Arizona, California, Kansas, South Carolina, Tennessee, Virginia, and Washington in mid-April.

Eight stores may not sound like a lot, but retail crises start small. Of course, Walmart will be OK as a business. Still, I find it very concerning that they are closing stores, particularly in areas that may not necessarily have a high crime rate, as we have seen mass left to be why some retail stores have closed in the last few years.

Now, that stirs the question, why is this happening? I could be wrong, but I have two ideas. One is re-adjusting interest rates. Since many companies borrowed money at such low rates, corporate debt will start to re-adjust this year. If that’s true, Walmart may be shutting more stores down than they have announced currently. The second is in impoverished areas. Walmart being in low-income areas may prompt people to shop more at stores like Dollar General or Save A Lot, which could hurt Walmart in low-income areas. Overall, it will be interesting to see what happens to Walmart and retail in general during this economy.