After closing its last two stores in the city of Portland, some have speculated due to retail losses from rampant thefts combined with increased costs for loss prevention, Walmart has now announced it will be closing four of its eight stores in the Chicago area.

It marks a reversal of the company’s high-profile 2020 commitment to expand in the city, as an extension of its corporate racial justice initiative that it announced in the wake of the George Floyd riots.

In a corporate statement, the company said, “The simplest explanation is that collectively our Chicago stores have not been profitable since we opened the first one nearly 17 years ago – these stores lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years. The remaining four Chicago stores continue to face the same business difficulties, but we think this decision gives us the best chance to help keep them open and serving the community.”

Some analysts noted that the increase in losses coincided with an increase in the minimum wage by almost 60% which the city of Chicago passed in 2018.

In addition, shoplifting losses in the retail sector have been surging, driving up costs due to both the thefts themselves, as well as necessary increases in loss prevention budgets.

The company also said that the workers in these stores would be allowed to shift employment to other Walmart stores, and it would seek to aid local community leaders find ways to reuse the buildings.

The company noted the remaining four Chicago stores face the same economic difficulties, however by closing these four, it would give the remaining four the best chances to stay open for their communities..