McDonald’s is set to close hundreds of locations inside Walmart stores as more and more consumers are beginning to shop online and get food orders to go via drive-thru windows.
The fast-food chain has had up to 1,000 locations inside Walmart over the nearly 30-year partnership. Now, only about 150 stores will remain after a wave of closures, according to The Wall Street Journal.
Increased online shopping during the coronavirus pandemic is thought to be a main reason for the closures, according to CNBC. Many Walmart shoppers have opted to purchase groceries online and have them packed into their vehicles in the store parking lot or have them delivered to their homes.
E-commerce sales for Walmart increased by 70 percent in the most recent fiscal year, the outlet noted.
Walmart spokeswoman Molly Blakeman confirmed with CNBC that the retailer will convert many of the McDonald’s stores into other services or restaurants. Taco Bell and Domino’s Pizza will be tested in some locations, while others will use the space for shops that offer tool rentals, or hair braiding and other products.
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