Walmart Stores To Close In Portland Oregon

EDITOR'S NOTE: Amid a rise in crime and civil unrest, Walmart's decision to close two of its stores in Portland, Oregon, just months after the CEO's warning about the city's safety concerns, has raised questions about the challenges facing retailers in urban areas. In recent years, Portland has been grappling with rising crime rates and social unrest, and Walmart's decision to close its stores in the city is seen as a sign of the challenges facing retailers operating in urban areas. It has sparked a debate about the impact on the local community, particularly on low-income residents who rely on Walmart's affordable prices. This move comes at a time when retailers across the country are grappling with a range of challenges, from supply chain disruptions to labor shortages. In this article, we'll explore the factors driving Walmart's decision, the potential impact on the local community, and what it says about the broader challenges facing retailers in urban areas.

The stores will officially close later in March

Walmart announced it is permanently closing all of its locations in Portland, Oregon, over financial reasons.

"We have nearly 5,000 stores across the U.S. and unfortunately some do not meet our financial expectations," Walmart said in its announcement, according to KPTV. "While our underlying business is strong, these specific stores haven’t performed as well as we hoped."

Both Walmart locations at Hayden Meadows and East Port Plaza will officially close on March 24. 

The employees at the locations will have the option to transfer to Walmart locations outside the city, KPTV reported. Pharmacy staff will also work with customers on transferring their prescriptions to nearby Walmarts. 

There are 17 other Walmart locations outside of Portland and Vancouver. A total of 580 employees will be affected by the closures, KGW8 reported. 

"We are grateful to the customers who have given us the privilege of serving them at our Hayden Meadows and Eastport Plaza locations," the announcement added. 

The retail staple announced other closures across the U.S., including in: Arkansas, Florida, Washington, D.C., Wisconsin, New Mexico and Illinois. 

The announcements come just a few months after the Walmart CEO warned stores could close and prices could increase in light of sky-high retail crimes affecting stores across the country.

"Theft is an issue. It’s higher than what it has historically been," Walmart CEO Doug McMillon said in December on CNBC. He added that "prices will be higher and/or stores will close" if authorities don’t crack down on prosecuting shoplifting crimes. 

A Walmart spokesperson told Fox News Digital when asked about McMillon's comments that "there is no single cause for why a store closes."

"We do a thorough review of how a store performs and weigh many factors before making the difficult decision to close a facility," the spokesperson said.

"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. Our focus right now is taking care of our associates during this transition and working with our customers to transition their pharmacy, and other, shopping needs to nearby stores."

Walmart's announcement comes after other stores in Portland have closed, many of which cited crime specifically. 

A clothing shop called Rains PDX permanently shut down in November after facing a string of break-ins that left the store financially gutted. The store owner even posted a blistering note on the shop's doors slamming the city’s crime rate.

"Our city is in peril," a printed note posted on Rains PDX store read. "Small businesses (and large) cannot sustain doing business, in our city’s current state. We have no protection, or recourse, against the criminal behavior that goes unpunished. Do not be fooled into thinking that insurance companies cover losses. We have sustained 15 break-ins … we have not received any financial reimbursement since the 3rd."

A Portland Nike store also shut down late last year following rampant shoplifting incidents, while a Cracker Barrel abruptly shut down last year, with employees citing security issues.

Originally published by: Emma Colton on FOX Business