Walmart and Sears are shutting down their e-retailers, leaving shoppers with limited options for buying and selling items online.
Walmart said it plans to open a handful of new stores in cities across the country, including Houston, Atlanta and Phoenix, but it didn’t give a timeline for the expansion.
The decision to shut down its two largest retail hubs, however, is not surprising.
Wal-Mart was already planning to expand its online business by adding e-stores to its website.
That plan is not without its critics, though, with critics pointing to the company’s inability to keep up with demand for its products.
In addition to the online stores, Walmart plans to expand distribution in grocery stores and other small- to medium-sized stores through partnerships with independent grocery chains.
Wal-Store plans to invest in technology and technology-enabled operations.
Wal Mart and Sears both had more than $3 trillion in revenue in the first quarter of 2019.
The company said it will close its flagship stores in suburban Dallas, Atlanta, Milwaukee, St. Louis and Detroit.
It will also close its largest retail outlet in Seattle.
The two companies announced the plan for the closures at the end of September.
WalMart and Walmart did not specify what would be shuttered, but Walmart said it is working to “accommodate” customers.
It said it hopes to open about 3,000 additional stores and is looking to acquire additional retailing partners in the coming years.
“We have had success in expanding our e-shopping capabilities and our shopping experience.
It’s a very smart move,” Walmart CEO Doug McMillon said in an interview.
“We are investing to be the leading e-store destination.”
McMillon added that the company is “continuing to invest aggressively” in its ecommerce business, with plans to bring online and mobile sales into the stores in the next two to three years.
Walmons CEO McMillon was in Dallas this week to attend the International CES trade show, and he announced plans to begin building out the company online in 2020.
Walmes plan to open stores in Dallas, Houston, Memphis, Orlando, Phoenix and Tampa, Fla.
The Dallas store will open at the same time as the company begins its expansion in the city, McMillon announced.
At the CES trade shows, Wal-Marts new plans for its online operations have been met with skepticism from consumers.
Many people complained that the companies plan to shuttered stores was a sign that Walmart was trying to squeeze out smaller competitors in the marketplace.
It is also not the first time that Walmart has been accused of slowing down its online shopping.
Walmart has had a long history of online sales, and it has been criticized by some retailers for slowdowns in online sales.
Walman and Sears have been criticized for years for being slow to expand online shopping, particularly in urban areas.
For example, Sears has closed its flagship store in Milwaukee, while Walmart has closed about two dozen stores across the United States.
But Wal-Wates latest decision was not made in response to the increasing competition.
Walmart’s decision to shutter the two largest retailers, along with Sears, was driven by an increasing need for a better business model, Walworth said.
McDonalds announcement was met with some skepticism, with some commenters claiming Walmart is simply following the lead of other companies that shut down stores in response.
“This is a move Walmart is taking to get rid of a competitor that is disrupting its business,” said one commenter.
“This is the same corporate logic that WalMart has been using for years.”
“Walmart wants to take a back seat and become the only e-tailer in the country,” another commenter added.
While Walmart has faced criticism for slow online sales in the past, McMillons announcement is notable because it comes just weeks after a report from the Wall Street Journal showed that Wal-mart is slowing down online sales and hiring.
The Wal-Merica website is currently offline, but the company said in a statement that it is adding new online stores in coming months.
We will continue to invest to build out our online presence, as we believe it is the right business decision for our customers and the company, the company added.
In a press release, McMillianons CEO Doug McLaughlin said Wal-Walmart was “committed to building the best possible e-Commerce platform that is tailored for our business and our community.”
“The company has a long track record of innovation in the e-Retail space and we are confident that we can take the same path to become the leading online retailer,” McMillanson said.