Walmart Plunges 6.23% on Europe City Store Closure, Tariff Talks

On April 3, 2025, Walmart's stock experienced a significant drop of 6.23% in pre-market trading, reflecting investor concerns and market reactions to recent developments.

Walmart's decision to close its Europe City store in Wenzhou on May 1, 2025, has raised concerns about the company's operational strategy in China. The closure follows similar moves at other Walmart locations in the region, indicating a potential shift in the company's retail strategy. This decision could impact Walmart's market presence and customer base in Wenzhou, as the store was one of the few remaining physical locations in the area.

Additionally, Walmart's ongoing negotiations with suppliers to absorb the costs of U.S. tariffs have added to market uncertainty. Despite being summoned by the Chinese Ministry of Commerce, Walmart has continued to pressure suppliers to reduce prices by up to 10% for each new round of tariffs. This strategy aims to offset the financial burden of tariffs but has drawn criticism for shifting the cost onto suppliers, who are already facing economic challenges.