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McDonald's To Close Hundreds Of In-Store Walmart Eateries

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McDonald's To Close Hundreds Of In-Store Walmart Eateries

McDonald’s (NYSE: MCD) is planning to shut down hundreds of its eateries located inside Walmart (NYSE: WMT) retail stores due to changing consumer patterns for shopping and dining.

What Happened: McDonald’s decision, which was first disclosed in the Wall Street Journal, comes after a year of pandemic-fueled changes in retailing that put an even greater emphasis on e-commerce over brick-and-mortar purchasing.

Walmart reported its e-commerce sales soared by 79% for most of its recent fiscal year, with shoppers opting to either have merchandise delivered home or be made available for parking lot pick-ups that do not require in-store activity.

McDonald’s, which has been part of the Walmart retail presence for three decades, will retain about 150 in-store locations – at its peak, the fast-food giant had 1,000 in-store restaurants.

Related Link: Stock Wars: Yum! Brands Vs. Restaurant Brands International

What's Next: A Walmart spokesperson stated the company is evaluating different use for the spaces left vacant by McDonald’s departure.

Among the options being considered by Walmart is turning the vacancies into ghost kitchens that will function for delivery-only restaurants and having local independently-owned restaurants move in.

Some locations are testing whether the Yum Brands! (NYSE: YUM) brands Taco Bell and Domino’s Pizza would be an adequate replacement, while others are forgoing food service in favor of reconfiguring the space for merchandise sales.

Photo by Mike Mozart / Flickr Creative Commons.

 

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