Hadley Malcolm

USA TODAY

Walmart (WMT) will close 269 stores around the world in a strategic move to focus more on its supercenters and e-commerce business, the company said Friday.

The closures include 154 U.S. locations, encompassing Walmart's entire fleet of 102 "Express" format stores, its smallest locations meant to compete with dollar stores, which have been in pilot testing since 2011. Some supercenters, Sam's Club locations and Neighborhood Markets will also close, plus 115 stores in Latin American markets. The closures were decided based on financial performance and how well the locations fit with Walmart's broader strategy, says Greg Hitt, a company spokesman.

Macy's announces layoffs, lists 36 store closures

Walmart has been working aggressively to grow its e-commerce presence and digital services, plus upgrade stores and provide shoppers with a more pleasant experience. In that vein, the company has also been making a big push to increase wages and provide more training to employees, an effort that's costing more than $1 billion.

The store closures, which represent less than 1% of global revenue from Walmart's nearly 11,600 stores worldwide, will allow the retailer to step up its digital and in-store initiatives, Hitt says.

In a statement, Walmart CEO Doug McMillon said the company is "committed to growing, but we are being disciplined about it." Walmart plans to open more than 300 stores in the coming fiscal year.

List of the 154 U.S. stores Walmart is closing

Given the company's scale, the store closures won't have a huge impact on the business, says Brian Yarbrough, consumer staples analyst with Edward Jones, adding that the move also opens up the opportunity for dollar stores to regain market share as they'll no longer compete against Walmart's Express stores.

"In the grand scheme of things and as far as being material to the financial results, this means nothing," he says. Although Yarbrough says it could spell more store closures in the future as Walmart re-evaluates its physical footprint in a Web-centric market.

In addition to its supercenters and e-commerce initiatives, Walmart also plans to invest more in its Neighborhood Market format, smaller stores that are around 38,000 square feet and concentrated in fresh grocery items and pharmacy services, plus expand in-store pick-up services for online orders.

Around 16,000 store associates are affected by the store closures, with about 10,000 in the U.S. Some will have the opportunity to relocate to other Walmart stores. The rest will receive 60 days pay plus severance if eligible, the company said.

Finish Line to close 150 stores amid falling sales, names new CEO

The news comes as other retailers have announced store closures recently in order to stay competitive in a changing retail landscape. Finish Line said last week that it would close 150 stores after reporting a third-quarter loss. Macy's also said last week that it plans to close 36 stores and eliminate more than 4,500 positions in a bid to become a more nimble business.

Follow Hadley Malcolm on Twitter @hadleypdxdc.