Walmart has revealed a significant shift in its strategy, announcing plans on Wednesday to construct or transform over 150 stores within the next five years. This move also includes ongoing renovations of current stores.
This announcement represents a notable change in direction for the retail giant.
Back in 2016, Walmart slowed down the opening of new stores, focusing instead on enhancing its online presence and technology and refurbishing existing stores to better compete with online giant Amazon.
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Walmart Boosts Online and Physical Store Integration
Based in Bentonville, Arkansas, Walmart is adapting to changing retail trends. Like many other retailers, it's increasingly using its physical stores to fulfill online orders and as pickup points for online shopping.
John Furner, the President and CEO of Walmart's U.S. division, shared in a memo with The Associated Press that under this new strategy, the first two Neighborhood Market stores are set to open this spring in Atlanta and Santa Rosa Beach, Florida.
Additionally, Walmart plans to launch 12 new stores and convert a smaller location into a Supercenter this year. Supercenters are large stores, about 180,000 square feet, offering a wide range of products from groceries to electronics.
Furner emphasized the significant investment these initiatives represent, including labor, supplies, and tax revenue, which will benefit local communities. He also noted that these efforts are key to expanding Walmart's reach and serving more customers.
Josh Havens, a spokesman for the company, stated that while some of these stores will be expansions of smaller locations into Supercenters offering a full range of groceries and merchandise, most will be entirely new constructions.
The company has not disclosed the cost or specific locations for these new stores. Walmart operates over 4,600 stores nationwide and nearly 600 Sam's Club warehouses. Sam's Club is also expanding, aiming to open more than 30 new stores in the U.S.
As the largest private employer in the U.S., with approximately 1.6 million employees, Walmart's expansion signifies a strong belief in the future of its physical stores. This move comes amid intense competition from online retailers like Amazon and Shein.
Despite the growing emphasis on online sales and its third-party marketplace, Walmart's expansion suggests that its physical locations remain a vital part of its strategy. About 90% of the U.S. population lives within 10 miles of a Walmart store, and this expansion will further cement its presence in the retail landscape.
Walmart Unveils Pay Hikes and Stock Split
Walmart has set the stage for a major announcement in the last two weeks. The company first declared an increase in the average salary for its store managers. Following this, Walmart introduced a stock grant program for these managers.
The most recent development is a 3-to-1 stock split aimed at making share purchases more accessible for its employees.
Moreover, Walmart has announced a raise in the average hourly wage for its frontline workers to $18, an increase from the previous $17.50.
This move underscores the company's commitment to its workforce. As one of the largest employers in the country, Walmart has a workforce of over 1.6 million people, including close to 56,000 employees in Arkansas.
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