Walmart has announced a spate of store closures across the globe, a move that will primarily impact its US and Latin American operations.

Overall, some 269 stores will close – 154 in the US and 115 internationally. The stores being shuttered in its domestic market include 102 Walmart Express stores, 23 Neighborhood Markets, 12 Supercenters, seven Puerto Rico outlets, six discount centres and four Sam’s Club locations.

As for the international closures, 60 loss-making stores in Brazil and 55 “primarily small, loss-making stores” in other Latin American markets will be axed.

The announcement brings the curtain down on the Walmart Express small store trial, which was launched back in 2011.

This comes as little surprise, though, seeing as the banner was rolled into the Neighborhood Market division in 2014 and store numbers have remained stagnant.

What this means for the retailer’s other two small store trial formats – Walmart To Go and Walmart on Campus – remains to be seen. But as Planet Retail previously predicted, many global players are looking to scale back their banner portfolios in the quest for simplification and efficiencies.

Focus on the core

Certainly, Walmart’s focus is very clearly on strengthening the core Supercenters and Neighborhood Markets, and marrying the stores with the retailer’s ecommerce operation through expanding pick-up services for customers.

Playing down the impact of the closures, Walmart was keen to emphasise the fact that the closures account for less than 1% of its global sales area and revenue, and that it was still intending to open in excess of 300 new stores globally this year. This will include 50-60 new Supercenters in the US, 85-95 Neighbourhood Markets and 7-10 new Sam’s Club locations.

In addition, some 200-240 new stores will open internationally. “We are committed to growing, but we are being disciplined about it,” explained chief executive Doug McMillon.

Mexican disposals

However, following on from the announcement, Walmart de Mexico has also revealed its intention to dispose of its Suburbia apparel chain. This currently consists of 117 outlets in 44 cities across 29 states. In 2014, the arm contributed just over 3.5% of Walmex total sales.

The banner has been struggling for meaningful growth in recent years, with sales slipping from $1.08bn (£760m) in 2014 to $888.5m (£621.57m) last year. And it is projected to make only slow upward progress to 2020.

The sale, therefore, comes as no surprise, particularly as Walmex has signalled its aim to concentrate its focus on its core food division and on expanding its ecommerce proposition in the country – something that has become a more urgent concern following Amazon’s entry into Mexico last year.

Performance overall has been improving steadily in recent quarters and it is clear Walmex is eager to capitalise on this by shedding peripheral operations that may distract from the important business of finessing its food operation.