The Walmart store at 656 New Haven Ave. will close July 29, a company spokesman told the Valley Indy Wednesday.
The store employs about 150 people.
Phillip Keene, a Walmart corporate spokesman, said the company will try to transfer those employees to other stores in the area.
“We have a strong track record of finding jobs for associates who want to transfer to nearby stores,” Keene said. “We operate three stores within 10 miles of Derby and are hopeful that the vast majority of associates will be able to transfer to one of these stores in the coming weeks and months.”
Walmart does not own the property at 656 New Haven Ave. The company rents the space. Its lease was up this month, and the retail giant opted not to renew, Keene said.
The employees were notified about the closing and city officials were expected to be told Wednesday morning.
In January, Walmart company officials announced they were closing 269 smaller stores in the U.S. and elsewhere. Click here for a list published on the USA Today website.
No stores in Connecticut were on that list.
The decision to close the Derby store came after considering several factors, including store revenue.
“The decision not to renew the lease of our Derby store was reached on the basis of our standard review process which accounts for a number of factors, including financial performance as well as strategic alignment with long-term plans,” Keene said.
Walmart is building a 150,000-square-foot super center in Monroe, though that project was not listed as a reason for the impending Derby closure.
There is a Walmart in Shelton on Bridgeport Avenue, 4.7 miles away from the Derby store.
The Derby Walmart has been in business for roughly 15 years. It is a roughly 94,000-square-foot store, anchoring a shopping plaza that includes an Adams Hometown Market and a CVS.
Mayor Anita Dugatto said the news is disappointing, but said Route 34/New Haven Avenue in east Derby is a thriving retail area. She is confident a new anchor tenant will be found.
“It’s not great news for us, but it does open more retail space someone can get into,” Dugatto said. “You can look at the good side — there’s more retail space. The bad side is we’re losing a business.”
The Valley Indy left a message Wednesday morning with the DLC Management Co. of New York. The company is listed as one of the owners of the shopping plaza that was anchored by Walmart.
If the approximately 150 Walmart employees can’t find positions within other Walmart stores, a severance package of some kind will be offered.
Keene said employees would learn more about severance as summer approached.
