Walmart, the largest public corporation and the biggest private employer in the world has recently posted a 1.4% decline in earning for last quarter. Sales have been declining at walmart retail stores in the US and traffic has very slow in most walmart stores. Over the past decades, Walmart has been a strong retail force and an indicator of shoppers’ sentiments. Walmart has always enjoyed higher traffic compared to competitors. Consequently, buyers have snatching products off the shelves quickly which is good for walmart. In contrast to the higher traffic and consumers snatching goods off shelves, Walmart has been unable since 2011 to replenish stocks as quickly as the items have been flying off the shelves. In an attempt to rectify the issue, Walmart even hired consultant and redirected some of their employees to help replenish shelves and products. Unfortunately for Walmart, products were not back on shelves early enough. Customers perhaps while unable to get what needed at walmart, went elsewhere. But couple of with the inability to replenish their shelves quickly, Consumers shopping habits have been shifting toward specialized stores instead of big box retailers and online stores. Generation shifts and shopping habits are having an impact on big box retailers. In an effort to remedy that, Walmart has been opening neighborhood store which are smaller and catered to the demographic where the stores are located instead of operating like a big box retailer.
Online shopping has pushed a lot of big retailers to the brink and even some out of business.
All of Walmart efforts have produced a little improvement for the company but it looks like shoppers tend to associate Walmart with product of lower quality and shoppers prefer to invest their hard earned money elsewhere to get a better value.
THere is no need to panic yet, since Walmart is not like Kmart, Sears and other big retailers who suffered a bad fate. Walmart has the resources and the innovation needed to improve its quality and perhaps cater to its customers.
One very important thing to keep in mind as we progressing in the future is the shift in people's shopping habits. No company is immune from the change in habit but now will walmart be able to readjust its strategies and still be able to preserve its position?
