Walmart to add 150 stores, revamp 650 more

Walmart (WMT) has announced a plan to build or convert more than 150 stores over the next five years, in addition to remodeling 650 stores in 47 states as well as Puerto Rico. This announcement comes after the closing of dozens of stores over the last several years.

Yahoo Finance's Alexandra Canal, Brooke DiPalma, and Pras Subramanian discuss the retailer's move.

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Editor's note: This article was written by Eyek Ntekim

Video transcript

BROOKE DIPALMA: On the consumer side of things, turning now to Walmart. The retailer planning to build or convert more than 150 stores. Now, this would be over the course of the next five years. Meanwhile, during the 12 months, Walmart also plans to remodel 650 stores. Now, that's across 47 states and Puerto Rico. But in this and this move, this latest 150 stores will grow the current store base by roughly 3%, and so they're making quite an investment here.

But also important to note here, that this comes on the heels of them closing roughly 140 stores since fiscal year 2020. And so when you think about that in mind, the share, the market share gain that Walmart has had in recent months, they're really trying to entice consumers to come into their doors and trying to hold on to that share that they've gained recently given consumers going there for groceries primarily.

PRAS SUBRAMANIAN: I didn't know that they were actually going to just going to shift, close some stores, open new ones, convert other small stores to bigger stores. It just my initial thought was that this is them doubling down on physical retail.

BROOKE DIPALMA: Yeah.

PRAS SUBRAMANIAN: The importance of that and having a one big tent for everything. But it's interesting to note that the closures coincide with this auditions as well.

ALEXANDRA CANAL: Yeah. And you bring up a good point too. Like doubling down on brick and mortar at a time when we're seeing e-commerce really balloon there. But Walmart's they've been making, they've been making some moves, right? Even with the, they raised the minimum wage, right? For their managers?

BROOKE DIPALMA: They just recently announced a $20,000 stock grant for supercenter US store managers. They also recently announced less than 10,000 for more of a smaller typical store. But this is going to be the first superstore. They haven't opened a new superstore in roughly two years. So that really goes to show the gisements and gazebos they're trying to show off here this remodeled look as they try to hold on to that high income share of shoppers.

PRAS SUBRAMANIAN: Store of the future, right?

BROOKE DIPALMA: Store of the future, Pras.