In a move that underscores the challenges even retail behemoths face, Walmart has announced the permanent closure of its West Covina supercenter in Southern California. The store, located at 2753 E. Eastland Center Drive, will cease operations on March 29, following a pattern of closures affecting underperforming locations nationwide.
The decision, as described by the Bentonville, Ark.-based company, was not made lightly but came as a result of a “careful and thoughtful review process.” With nearly 5,000 stores across the U.S., Walmart has had to confront the harsh reality that some locations simply do not meet financial expectations. In 2023 alone, 24 stores across 14 states and Washington, D.C. have been shuttered, including notable closures in Georgia, Oregon, and Illinois.
The financial strain of these underperforming stores is significant, with Walmart revealing that “these stores lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years.” The West Covina supercenter is among those unable to escape this trend, despite the company’s strong underlying business.
The closure will affect all 237 employees at the 120,000-square-foot location, who have been offered the opportunity to transfer to other Walmart stores. The company has emphasized its commitment to its workforce, stating that it wants to “keep them in the Walmart family.” Those who opt not to transfer will receive severance pay, and pharmacy staff are assisting customers with prescription transfers to nearby Walmart locations.
Walmart spokeswoman Alicia Anger expressed the company’s gratitude towards the West Covina store’s customers and assured that Walmart will continue to serve them through its network of stores in the area, online, and via delivery services. The company operates a total of 309 Walmart and Sam’s Club locations throughout California, employing over 100,000 workers.
The West Covina store, which opened in 2012 in a space formerly occupied by Mervyn’s department store, was initially welcomed by the community and the city’s mayor at the time, Mike Touhey, for the job opportunities it brought. However, some had concerns about the potential ‘Walmart effect’ on local competition.
As the retail landscape continues to evolve, Walmart’s strategic decisions reflect a broader trend of adapting to market demands and financial imperatives. While the closure of the West Covina supercenter marks the end of an era for the location, Walmart’s presence in Southern California remains robust, with no additional closures in the region planned at this time.
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