A buyer carrying a child returns to their car in front of a Walmart store in Duarte, California, USA, on Thursday, November 12, 2020.
David Swanson | Bloomberg | Getty Images
McDonald’s is closing hundreds of restaurants in Walmart as customers shop more and more online and opt for the drive-thru window.
The retailer confirmed on Friday that the fast food chain will have about 150 locations remaining in 3,570 super centers. This has gradually decreased over the years from a peak of about 1,000 locations.
The closures were first reported by The Wall Street Journal.
For about three decades, the two corporate giants have teamed up and made it possible for Walmart shoppers to order a burger and french fries after filling their shopping cart with food and other merchandise. However, the pandemic has shaken the way customers prefer to shop and dine.
Many Walmart shoppers now buy their food online and have it dropped in their trunk in the parking lot or delivered to their homes, eliminating the need for them to shop. Walmart’s e-commerce sales in the US rose 79% in the most recent fiscal year ended Jan. 31, compared to the previous year – a reflection of foot traffic that became web traffic.
Chains such as Sweetgreen, Shake Shack and Chipotle Mexican Grill have announced plans to add more lanes, as customers prefer the convenient and more contactless approach.
McDonald’s has accelerated plans to close restaurants during the pandemic. In a call to investors in July, Chief Financial Officer Kevin Ozan said the fast-food chain will accelerate the closures it expects in the coming years – including more than 100 Walmart locations with low turnover.
Walmart plans to turn former McDonald’s locations into other types of restaurants and services, including some with a more regional feel or a unique effect, said Walmart spokeswoman Molly Blakeman. For example, she said, a store has a vending machine for smoothies and a few more will become ghost kitchens, a central kitchen that cooks for several brands or restaurants.
She said she is testing locations with Yaco Brand’s Taco Bell and Domino’s Pizza. In other stores, she said the space has become other types of stores offering a wide range of products, from renting tools to braiding hair.