A Walmart store in West Covina, California, about 20 miles from Los Angeles, is closing. Company leaders announced that the store has not been doing well and will close its doors on March 29.
Walmart Announces Closure of Underperforming Store
The company has announced that employees at the Walmart on 2753 E. Eastland Center Drive, including those working in the pharmacy, were informed about the store's upcoming closure on Monday, February 26.
Walmart, headquartered in Bentonville, Arkansas, stated that the decision to close the store was made after a thorough evaluation. "This decision was not made lightly and was reached only after a careful and thoughtful review process," the company explained.
With nearly 5,000 stores across the U.S., Walmart acknowledged that not all stores meet their financial expectations.
In 2023, Walmart shut down 24 stores in 14 states and Washington, D.C. that were underperforming, including two stores in Georgia, two in Oregon, and eight in Illinois. "These stores lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years," Walmart said in a statement regarding the closures.
Additionally, the company closed two more locations on February 9 of this year - a Walmart Neighborhood Market in San Diego and a Walmart in El Cajon, further indicating the ongoing adjustments to its store operations based on performance.
Walmart expressed its gratitude to the customers who have shopped at the store over the years. The company has not yet announced which retailer will take over the space vacated by Walmart after the store closes.
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West Covina Walmart Offers Staff Transfer Options
All 237 employees at the 120,000-square-foot Walmart in West Covina are allowed to transfer to other Walmart locations. The company has assured that these workers will continue to receive their salaries until May 31.
Employees who decide against transferring will be given severance packages.
The pharmacy team also makes arrangements to help customers move their prescriptions to other Walmart stores nearby, ensuring a smooth transition for ongoing medication needs.
Walmart emphasized its commitment to its workforce, stating, "We will still employ thousands of associates at 16 stores in the Covina area, including at a supercenter that is less than 4 miles from this location. We have invested in our associates and want to keep them in the Walmart family."
Attempts to contact city officials for comments on potential successors for the Walmart space were unsuccessful.
Alicia Anger, a spokesperson for Walmart, expressed the company's appreciation for the community's patronage of the West Covina store. "We look forward to continuing to serve them at any of 16 other locations across the area, on walmart.com, and through delivery to their homes or businesses," Anger stated.
Walmart runs another supercenter in Covina, with additional stores in La Habra, Duarte, Baldwin Park, and Rosemead. The company has announced that no further closures are expected in the region.
The West Covina store opened its doors in 2012 and took over a space formerly occupied by Mervyn's department store, which shut down in 2009. The store's opening was met with mixed reactions, with some welcoming the arrival of a major retailer to Eastland Center.
In contrast, others were concerned about its potential to stifle local competition, a phenomenon often referred to as "the Walmart effect.
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