For weeks now, we have been reporting on the mysterious closings of five Walmarts across the country.
2,200 Walmart employees at five stores in different cities were laid off last Tuesday and given just a few hours notice. Walmart claimed that the stores had to be closed due to plumbing issues, but many have questioned this explanation since all the stores were located in different parts of the country.
In the wake of the Walmart closings, many other national chains have announced some serious closings as part of the “retail apocalypse.” Now, the real reason why stores like Walmart are closing down has been revealed.
According to Yahoo News, American shoppers have completely lost interest in the stuff that department stores like Walmart sell.
“People no longer waste money just to show the stuff they have,” says Sarah Quinlan of Mastercard Advisors. “We’d rather have an experience. This is how we will continue to spend going forward.”
With nearly $500 billion in annual sales, Walmart isn’t going away for good anytime soon. However, further growth for the superstore has been incredibly slow and will likely only get slower in the years to come.
Other stores like Macy’s, J.C. Penney, and Kohl’s have also experienced a drop in sales recently as consumers are saving more to pay off debt. Gas prices are are $1 per gallon lower this year, freeing up about $1,000 a year for the average American household. Unfortunately, Americans are choosing to spend this extra cash on other things rather than on department store goods.
Walmart has launched a series of plans to boost their numbers including improving the quality of their stores, selling more groceries, and competing more aggressively with online stores like amazon.
However, with Walmart getting so much bad press lately from the Jade Helm accusations, it isn’t looking too good for them.