Posted October 04, 2018 08:59:09 Walmart has been selling its expedia supercenter in Arizona at a discount of more than $1 million a year for decades, but now it is selling the space for $1.9 billion, or more than twice the original purchase price.
The company said it will close the facility in 2019, but will keep its remaining properties.
Walmart announced its plans to close the expedia property in November 2018.
Walmart had originally planned to buy the site in 2019.
It was unclear if the supercenter was still owned by the company or if it was being converted to a Walmart.com store.
The site’s former owner, Expedia, announced it was selling the site last year.
Walmart’s supercenter is the third supercenter to be converted to Walmart.
Expedia said in a statement on Monday that it was making “important decisions to move forward with a new location in Arizona that will be able to serve Walmart’s customers and expand our Arizona presence.”
Walmart’s decision to close its supercenter comes as Walmart’s revenue has been stagnant and its share of the American economy has dropped to 14.4 percent from 17.5 percent a decade ago.
The retailer said it had made $3.7 billion in sales last year, down from $4.3 billion in 2016.
The closure of the supercenters, the company said, will save the company $600 million in labor costs and $200 million in real estate costs.
Walmart was already planning to close two of its remaining supercenter sites in 2019 in Texas and New Mexico, and to consolidate its business in the U.S.
A Walmart spokeswoman told Reuters that Walmart was “deeply committed to our Texas-based community” and the site at Arizona Supercenter was a “significant piece of the overall Walmart family of locations.”
Walmart also said the Arizona supercenter would be the site of a Walmart Superstore in the future.