Walmart’s recent announcement caught many off guard. The retail giant is quietly changing course just months after stating there would be no store closures in 2025.
What’s driving this unexpected shift? In a world where shopping habits constantly evolve, Walmart is facing a new kind of pressure, not just from online competitors, but from its own customers.
A specific pattern of changing behavior has triggered decisions that could reshape the big-box landscape.
One store in Minnesota is already on the chopping block, and it may not be the last. So what’s really going on behind the scenes?
A Promise Reconsidered
Earlier in the year, Walmart publicly stated it had no plans to shut down stores in 2025. This helped reassure investors and employees alike.
But in a matter of months, that assurance changed. New data and customer patterns have forced leadership to rethink what stores make sense and which don’t.
Retail Can’t Stand Still
Despite being the king of physical retail, Walmart isn’t immune to rapid shifts. While stores may look the same on the outside, the way people shop inside them has changed fast. Tech, convenience, and even layout expectations force retailers to modernize or fall behind.
Modernizing the Empire
In response, Walmart is investing in major upgrades. A total of 650 stores across 47 states are being renovated, each costing roughly $1 million.
These stores are being reimagined to match how people shop today: quickly, efficiently, and often with tech in hand. But not every location fits that mold.
Innovation Comes with Limits
Even with a $650 million revamp underway, some stores aren’t worth upgrading. That’s where the problem lies.
Older, underperforming locations that no longer match customer demand are being left behind. Modernization, in this case, means letting go of what no longer works.
The First to Fall: Coon Rapids
One of the first closures is happening in Coon Rapids, Minnesota. The store will officially shut its doors on August 29, 2025.
It sits in a busy shopping plaza near Minneapolis but has struggled to keep up with the needs of local shoppers.
What Went Wrong?
The Coon Rapids store had several disadvantages. It was an older format, lacked a full grocery section, and was positioned near several other Walmart locations.
Financial performance had lagged, and it wasn’t offering what nearby residents increasingly expect: fresh, affordable groceries under one roof.
The Grocery Factor
Groceries have become a key driver for foot traffic. As food prices rise due to tariffs and inflation, shoppers rely more on discount grocery options.
Locations that don’t meet this expectation are being skipped, and that’s a significant reason why Coon Rapids didn’t make the cut.
Not the First in the Area
This isn’t an isolated case. Another Walmart store in Brooklyn Center, also in the Twin Cities region, was closed in April 2023.
That makes two closures in the same metro area in two years, signaling a larger trend Walmart is monitoring closely.
Adapting to Theft Trends Too
Apart from location and format, Walmart is also reacting to loss prevention challenges. In Missouri, it removed self-checkouts after facing rampant theft.
The result? Police calls and shoplifting incidents dropped dramatically. Tech isn’t always the answer. Sometimes, old-school staffing works better.
What About the Employees?
For the Coon Rapids closure, about 180 workers are affected. Walmart says they’ll be eligible for transfers to nearby stores.
With over a dozen Walmart locations around Minneapolis, reassignment is likely, but not guaranteed for everyone.
Omnichannel or Bust
Walmart isn’t abandoning these communities entirely. The company continues pushing its omnichannel strategy, encouraging customers to shop online or use delivery services instead. Still, for many who relied on the physical store, this means a significant change in routine.
The Big Picture
Walmart has over 4,600 stores across the U.S. A single closure may seem small, but the company evaluates each store’s performance carefully.
These decisions are data-driven and tied directly to how people are spending their money now compared to five years ago.
Is This Just the Beginning?
With customer behavior evolving rapidly, more closures could follow if certain locations can’t justify their existence.
Walmart is betting big on tech, efficiency, and grocery relevance. Stores that don’t tick all three boxes may not survive the next round of evaluations.
A Sign of Retail’s New Reality
Walmart’s Coon Rapids closure isn’t just about one struggling store. It’s about how even the biggest retailers must constantly listen, adapt, and make hard calls. In today’s market, standing still is the fastest way to fall behind. The message is clear: evolve or close.