NEW YORK: Wal-Mart Stores Inc. has taken a u-turn on its plans to keep opening new US stores, as it has decided to build state-of-the-art warehouses to meet the growing demand of online shoppers.
Wal-Mart boss Carl Douglas McMillon, who took over management of the largest US retail chain, told investors last week he will cut $850 million from his new-stores budget in 2015 – and spend $350 million more on “e-commerce” facilities, including a second giant warehouse in Bethlehem.
Wal-Mart will open 70 or fewer Supercenters next year, down from 120 this year; fewer than 200 “Neighborhood Market” stores, down from earlier projections of 350 or more; just 20 Wal-Mart Express locations, down from 70 this year; and as few as nine new Sam’s Club discount outlets, which have been losing business to rival Costco, media reports revealed.
Hammered by online rival Amazon, Wal-Mart is building big warehouses to ship goods straight to consumers – including two near one of Amazon’s own giant distribution centers in the Lehigh Valley warehouse district, linked by toll-free interstate highways to major East Coast ports and markets.
