Finally, A Unifying Theory of the Mysterious WalMart Closures .....

I just got back from the Walmart Neighborhood Market near our home. The long time employee cashier that checked me out was having a rough day.  She told me that since the Walmart at Admiral and Lewis had closed the character of their store had changed.  This got my attention since we were talking about my neighborhood.

She said that the last two weeks since the Admiral store closed had been difficult, observing that today was better than some days in that she had only been yelled at (translate that cussed out) by a customer once.  She continued that it could have been worse, recounting that last week, for the first time in the ten years that store had been open, one of their employees had been assaulted right there in the store.  The only ray of hope she could offer in that area was that next week two armed guards would be posted in the cashier areas near the door.

I asked her why the Admiral store had closed.  She was a fount of information.  First, it would seem that the 20 year lease on that store was up and profits were down, way down, almost non-existent. She alleged that the likely cause of the lack of profits was massive theft by both customers and employees hinting that at an ingrained culture of theft and dishonesty had developed in the store. Interestingly, she also said that there had been a waiting lessee for the store property, none other than the U.S. Department of Defense.

I don't know how much credibility to give all of this but I did find one unifying thread.  The online reviews of some of the stores closed used words like "ghetto" and "loud, obnoxious customers" and "dirty" and of course, "poor customer service and "long lines and no cashiers."  Those terms pretty well describe our experience with the Admiral store here in Tulsa.  There was regularly crime both in the store and in the parking lot.  The other customers were often at best annoying, sometimes scary and at worst threatening.  The store was always dirty and the employees for the most part left a lot to be desired.  My wife and I had taken to driving right past it on the expressway and traveling nearly fifteen miles to a store in the suburbs where the aisles were clean and the customers were better behaved.


But, there is one more theory that makes a whole lot of sense.  Nobody doubts that we are in for a long hot summer in black and mixed race neighborhoods, probably the worst since 1968. It could be worse than 1968 given the current explosive state of race relations in the U.S. under Barack Hussein Obama.

The pictures of rioters assaulting and looting the QuikTrip in Ferguson, Missouri are most likely burned into the consciousness of every senior executive in the U.S.  And, it that weren't enough, last nights video of a Baltimore CVS burning, surrounded by riot police could be the last nail in the coffin of many, many marginally profitable retail outlets in dangerous neighborhoods.

If I had a money losing store where there was the distinct possibility that it would be looted and burned this summer, I would close it too, not only to prevent the financial loss but also to protect my employees.  It would be a tough decision but it is better for all concerned that the store be closed and the employees lose their jobs rather than to risk being caught in a vicious race riot, particularly for those employees whose race is "wrong" for that neighborhood.

And that is probably the real reason that Walmart closed five stores.  It is entirely possible that other national chains may follow as well. And unfortunately, when that happens, the character of the nearby neighborhoods and retail community will changed for the worse, just like our nearby Walmart Neighborhood Market.