Walmart closing in Cahokia Heights could have major impact on the community, mayor says
The mayor of Cahokia Heights says he hopes to work with state and federal officials to persuade Walmart officials to keep its local store open.
The company has announced its store on Camp Jackson Road is closing on April 21. The pharmacy inside also is closing that day.
Walmart has been in the Cahokia Heights community for more than 40 years, and this news “is devastating to a community like ours. One that is dedicated to improving stability and providing necessary services for our residents,” Mayor Curtis McCall Sr. said in a statement.
He said when a major retailer like Walmart closes, it could leave an economic void that is extremely hard to fill in a disadvantaged community like Cahokia Heights.
McCall said officials have begun to weigh the closing’s economic impact on the community, including loss of employment and tax revenue implications.
The closing will be a major burden on local residents who depend on the Cahokia Heights store for goods and services. He said the nearest Walmart store is eight to 10 miles away.
McCall said he and other city officials are hoping to persuade Walmart in the coming days to remain in Cahokia.
“Hopefully this can be accomplished with the help of federal and state elected officials,” he said.
The decision to close the store in Cahokia Heights was made after a thorough review process, Robert Arrieta, communications manager of Walmart stores in the north and east, said in a release.
“We have nearly 5,000 stores across the U.S. and unfortunately some do not meet our financial expectations,” the release states. “While our underlying business is strong, this specific store has not performed as well as we hoped.
“There is no single cause for why a store closes and our decision is based on several factors, including historic and current financial performance, and is in line with the threshold that guides our strategy to close underperforming locations.”
Employees at the Cahokia Heights store will be eligible to transfer to another store. There are five within 16 miles of Cahokia Heights, the release states.
According to Business Insider, at least 12 Walmart stores are scheduled to close this year because they didn’t meet financial expectations. Three are in Illinois.
Last month, Walmart officials said they are taking a cautious look ahead at the economy, according to Yahoo Finance.
“The consumer is still very pressured, and if you look at economic indicators, balance sheets are running thinner and savings rates are declining relative to previous periods,” Walmart chief financial officer John David Rainey said during an earnings call. “And so that’s why we take a pretty cautious outlook on the rest of the year.”
