Wal-Mart pulls plug on smallest stores, shuts 269 locations

The closings highlight the challenges Wal-Mart faces in finding growth opportunities in both its home market, which it has blanketed with some 4,500 stores, and overseas, where it has grown to more than 6,000 locations but has struggled to generate consistent returns.

In an internal memo to staff, McMillon said a regular review of the company's assets was vital for growth. "Doing this ensures we focus and align our resources in ways that build a strong company positioned to win in the future," said the memo, which was seen by Reuters.

The Arkansas-based retailer said it would still open 142 to 165 stores in the United States in the year ending in January 2017. For the first time, it also disclosed plans to open 200 to 240 stores overseas in the coming year.

The company said about 95 percent of the closed US stores were within 10 miles of another that it owns, making it possible to move some workers to other locations. It said it would provide 60 days of pay and severance for eligible workers not placed.

The cuts drew criticism from a group backed by the United Food & Commercial Workers International Union, which for years has been behind a campaign pushing for better wages and benefits for Wal-Mart employees.

"Sadly, these latest store closings could very well be just the beginning," Jess Levin, communications director at Making Change at Walmart, said in an emailed statement. "This sends a chilling message to the company’s hard-working employees that they could be next."