Why Walmart is closing half of its Chicago locations ??

As part of its corporate racial justice campaign following the police killing of George Floyd, Walmart plans to reverse its high-profile vow to expand in Chicago in 2020 and close half of its stores there.

Out of the eight stores it manages in Chicago, Walmart said on Tuesday that it will eliminate four underperforming locations the following week. Three of the locations are found in the primarily minority South and West Side neighbourhoods of Chicago, which have long had access issues for groceries and retail stores. One of the establishments is in Chicago's North Side, which has a higher percentage of White residents and is wealthier.

After highlighting its initiatives in Chicago as a "critical part" of its larger $100 million commitment to advance racial fairness in 2020, Walmart made the announcement.

Doug McMillon, CEO of Walmart, stated in 2021 that "Chicago will be an example of what is possible when we leverage business, government, and community organisations for the good of all."

It also comes after more than a decade of vigorous efforts by Chicago's political elite to entice Walmart and other chains to unserved regions in an effort to promote economic growth.

But according to a statement made by Walmart on Tuesday, these four locations lose tens of millions of dollars annually, and their losses have virtually doubled over the previous five years. The corporation said that it spent hundreds of millions of dollars in the area and tried a number of different tactics to improve the stores. Walmart stated in a blog post that "unfortunately, these efforts have not materially improved the fundamental business challenges our stores are facing."

The business announced that employees at these stores would be entitled to transfer to other Walmart locations, and it would collaborate with local authorities to help identify possible uses for the structures.

The four stores that are still open in Chicago, according to Walmart, "continue to face the same business difficulties," but eliminating these four will increase the likelihood that the others will remain open.

The closures draw attention to Walmart's and other national retailers' recent retreat from major US cities. They also cast doubt on the efficacy of government plans to increase access to food and retail in neglected areas that heavily depend on big national companies.