The advent of Covid-19 has led to drastic changes in many business models that have been consolidated.
Photo: NOAH SEELAM / AFP / Getty Images
The coronavirus pandemic broke commercial plans as some companies multiplied their growth, others surprisingly well consolidated they have had to make dramatic adjustments to move forward.
The Wall Street Journal site reported this McDonald’s will close approximately 850 restaurants in Walmart stores in the United States, a partnership between the two companies that has been going on for three decades and will now have to turn around due to the change in consumer habits brought on by the coronavirus pandemic.
With the appearance of Covid-19 and enforced confinement to avoid contamination, Walmart increased its online sales during the pandemic year, in addition to offering its customers the option to pick up their products in their parking lots, the number of visits to the interior of the branches has negatively impacted the sale of McDonald’s and other integrated restaurants, such as Subway, which will also close franchises
According to the information McDonald’s had integrated a thousand restaurants into Walmart grocery stores at best, but given the current market conditions, it will close those sites with less business volume and only about 150 remain, which means a drastic contraction.
McDonald’s has informed the U.S. Securities Market Commission that it closed 100 restaurants last year Walmart plans to close another 325 restaurants by 2021
It turned out that the closing of the Golden Arches restaurants could undermine the income of Walmart, which rents the space unlike other competitors like Costco and Target, which have or license their own food services inside, so America’s largest supermarket chain is exploring other options for sustaining that source of incomeespecially now that it is gradually returning to normal as the number of vaccinated Americans increases.
The news impacted the stock market, given the adjustments due to the forced changes in both chains, McDonald’s stock fell 0.33%, while Walmart’s fell 0.30%.
With the arrival of the pandemic, many retailers have had to adapt their services to reduce the time within the establishments and social interactions to avoid contamination, with the return to normalcy we will have to wait a while to find out how e-commerce will integrate with people’s return to stores.
With information from The Wall Street Journal and Media
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