Walmart Neighborhood Market closing in Chandler, and some nearby residents and merchants aren't happy about it - AZCentral

Paulina Pineda Arizona Republic

Published 12:05 PM EDT Mar 29, 2019

The Walmart Neighborhood Market in west Chandler is closing next month.

The store, inside the Kyrene Village shopping center on the southwest corner of Chandler Boulevard and Kyrene Road, will close April 19.

A large yellow banner announcing the closure went up earlier this week. Inside, the store shelves sat half empty as customers took advantage of reduced prices.  

The Walmart Neighborhood Market concept was first launched in 1998. Stores are about one-fifth the size of a Walmart Supercenter and primarily sell groceries. The Chandler location is one of at least eight Neighborhood Markets, including one in Marana, that are closing nationwide as the company shifts its focus to online sales, according to Business Insider, an online financial and business news outlet.

Mom-and-pop shops in the strip mall worry the closure will hurt businesses at the shopping center, which already has several vacant storefronts.

Without an anchor store to attract customers to the shopping center, several managers and owners of neighboring businesses said customers will likely just drive past them.

Nancy Gomez, owner of Betillo’s Mexican Food, said many of her customers have complained about the closure. She said she doesn’t think the restaurant will be affected because many of their customers are regulars, but the closure will affect the plaza in general.

Store was underperforming

Tiffany Wilson, Walmart’s communications director, said the store’s financial performance was one of several factors that led to the closure. Walmart has no plans to open additional stores in the area, she said.

“While this was a difficult decision, in order to maintain a healthy business and deliver the shopping experience that our customers expect within a highly competitive retail environment, we must at times make tough choices,” she said. 

The store’s 84 employees will have the option to transfer to another location and will be paid through May 24. After that, eligible employees who don’t transfer to a new store will receive a severance, she said.

The store, which opened in August 2013, had five years left on its lease, said Mike DiDomenico, president of Wessex Commercial Management, the property manager.

DiDomenico said the closure caught Wessex by surprise. The management company is now looking for a tenant to take over the lease of the 44,000-square-foot space and leasing agents have already met with other grocers and big-box stores that can replace Walmart, he said.

He said the economy is strong, the center is located at a busy intersection, there is a large parking lot, and the owner recently upgraded the plaza. A Starbucks also recently opened at the location.

“The owner is very focused on finding a replacement tenant and hopefully a tenant that will better fit the mix of the shopping center,” he said.

Hit to shoppers

Shopper Judy Cooper, who lives within walking distance of the store, said the closure will affect residents who rely on the convenience of the Walmart Neighborhood Market for their grocery needs.

Cooper, 60, said the friendly staff, short lines and fair prices have kept her coming back. Though there’s a Fry’s two miles north and a Walmart Supercenter three miles east, she said Fry’s is more expensive and not everyone can make the trek to the other Walmart location.

Cooper has been rallying her neighbors and nearby business owners to save the store. She reached out to the city, leasing company and Walmart to no avail, she said.

“I’ve done everything, everything possible. I’ve exhausted all of my resources,” she said. “I’m very upset. Everybody there treats their customers like family. You don’t find a grocery store like that.”

Reach reporter Paulina Pineda at paulina.pineda@azcentral.com or 602-444-8130. Follow her on Twitter: @paulinapineda22.

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