Walmart (WMT) has taken inventory of a different kind in crime-ridden Portland, OR, and is closing down both of its store locations in the city as a result.
The store closings affecting the chain’s Hayden Meadows and East Port Plaza locations are scheduled for March 24. The shutdowns come after Walmart Chief Executive Officer Doug McMillan issued a warning on the downside impact of crime and retail theft in urban locales.
DON'T MISS: Chase Follows Starbucks, McDonald's in Making a Tough Decision
Walmart
Theft and Crime Trouble Walmart
“Theft is an issue. It’s higher than what it has historically been,” McMillon stated in a CNBC “Squawk Box” interview late last year. “I think local law enforcement being staffed and being a good partner is part of that equation. If that’s not corrected over time, prices will be higher, and/or stores will close.”
That scenario has come true in Portland, where retailers have amped up concerns over rising retail thefts.
“We’re having big retailers leave,” Jordan Zaitz, a member of the Portland Police’s Neighborhood Response Team, told KPTV. “I mean, to have Walmart close two of its stores is a really big deal. The people in those neighborhoods, that’s where they shop.”
While Walmart didn’t specifically cite retail theft in its decision to close its Portland stores, it implied the situation at the stores was untenable.
Walmart spokesperson told local news outlet KPTV the decision to close the Portland stores followed a “careful review of their overall performance.”
“We consider many factors, including current and projected financial performance, location, population, customer needs, and the proximity of other nearby stores when making these difficult decisions,” the spokesperson noted. “After we decide to move forward, our focus is on our associates and their transition, which is the case here.”
Texas Gov. Abbott Speaks Out
The news also triggered a Twitter spat between Portland Mayor Ted Wheeler and Texas Governor Greg Abbott.
“This is what happens when cities refuse to enforce the rule of law,” Abbott tweeted on March 5. “It allows the mob to take over. Businesses can’t operate in that environment, and people can’t live in it.”
The next day, Wheeler retaliated, tweeting, “Governor Abbott, are the dozens of Walmart stores that have closed in Texas in recent years all communities that ‘refuse to enforce the rule of law?’ The retail industry is changing and retail theft is a national issue.”
The Walmart closings will reportedly impact 580 employees. The retail giant currently has 4,270 stores in operation across the U.S.
