WalMart sales down & why

Old 09-22-2010, 07:42 AM
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Just read this story online about Wally World sales being down and what they think caused it. If anything, the story lends hope to keeping fabric at WalMart. Check out the fourth paragraph.
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NEW YORK (TheStreet) -- Wal-Mart's (WMT) issues may have nothing to do with price or assortment, but a change in shopping patterns.

The discount behemoth's new CEO Bill Simon attempted to quell investors fears during Goldman Sachs' Global Retail Conference taking place in New York this week, regarding declines in U.S. same-store sales.

Wal-Mart attempted to attract shoppers this spring with aggressive roll backs, but according to Simon, these deep discounts did not achieve the desired results. "It drove price perception, but not sales or traffic," Simon said. The company decided to return to its motto of everyday low prices, and Simon notes that traffic has improved -- though sales still remain negative.

Wal-Mart is also in the process of returning some merchandise to its store shelves that it previously removed under its "Project Impact" initiative. The company has already put dry grocery items back on the shelves and is now working on hardware and fishing. Simon said they are "going as fast as we can" to get products consumers have demanded back into the stores.

Despite assumptions that declining sales are from Wal-Mart losing higher-end customers it won over amid the recession, Simon says the reduction of shopping trips from mid-to-low income shoppers is actually the culprit.

"We didn't see loss of customers, but the number of trips. I believe this loss of trips were because we couldn't fill our assortment," Simon said. "As we bring items back it should boost traffic."

Both of these initiatives are expected to boost sales by the holiday season, Simon said. But retail expert Craig Johnson, president of Customer Growth Partners, isn't so certain that these efforts will bear fruit.

"Today's consumers are opting more for shorter, quicker and more focused shopping trips -- not the 'stock-up' trips their mothers would take -- and Wal-Mart's U.S. stores are simply not designed for either the convenience or opportunistic shopping mission," Johnson said in a report. "Wal-Mart's real sales problem lies not in its 'Action Alley,' but in its anatomy -- 160,000-plus square feet stores that consumers find hard to navigate quickly or easily."
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Old 09-22-2010, 07:51 AM
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I wrote them and told them I was done shopping there. When I can't buy I Can't Believe It's Not Butter, regular popcorn, popcorn oil, 10w30 Penzoil in 5 qts, and Cambell's Double Noodle soup because the shelves are bare there's something wrong. I told them that to reduce my stress level I was going to do my grocery shopping at Meijer's from now on. Since they don't have fabric and can't stock their shelves they must not need my money and I definately don't need their aggravation.
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Old 09-22-2010, 07:52 AM
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Originally Posted by raptureready
I wrote them and told them I was done shopping there. When I can't buy I Can't Believe It's Not Butter, regular popcorn, popcorn oil, 10w30 Penzoil in 5 qts, and Cambell's Double Noodle soup because the shelves are bare there's something wrong. I told them that to reduce my stress level I was going to do my grocery shopping at Meijer's from now on. Since they don't have fabric and can't stock their shelves they must not need my money and I definately don't need their aggravation.
I wonder if they know just how much business they're losing because some people, i.e., quilters, go there primarily for sewing needs and, while there, might buy other things. But, no sewing stuff, no shopper. Get it, WalMart?!!
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Old 09-22-2010, 08:00 AM
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One thing is clear they are totally out of touch with their buyers. :roll:
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Old 09-22-2010, 08:03 AM
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The only item I buy from WM is dogfood, and when I find it somewhere else that will be the end of WM for me!

I also told them I wouldn't shopping ther any longer, but they dont' seem to care.
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Old 09-22-2010, 08:17 AM
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Some of the Walmarts have prepacked 2-1 yd cuts of fabric... what is a quilter to do with that? they definetly are not in tune with their shoppers. I seldom go anymore either, a few things i need, but when i find someplace else to get those, i won't go at all.
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Old 09-22-2010, 08:20 AM
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I've greatly reduced the amount of money I spend at Wal-mart. Their prices have skyrocketed here. I refuse to pay $4.50-5.00 for a pound of bacon, and on some brands as much as $6.00 or over $3.00 for a gallon of milk. I still have 3 kids at home, and Wal-Mart can't meet my needs anymore. I'll drive the extra miles to get the lower prices somewhere else. And get a bigger selection of goods on the shelf. It really gets under my skin when they only have 2 brands to choose from on the shelf, Wal-Mart brand, and a low end brand. Neither one that I want for my family.
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Old 09-22-2010, 08:21 AM
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My wally world looks like a big warehouse. I hate it. I wish they would return to the good ole days where it was fun to shop and look around. Now I feel like this is what we have,get it and get out.
Hope they finally listen to us customers.
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Old 09-22-2010, 08:25 AM
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Wal-Mart may have tried for the "higher end" customers, but it forgot (and lost) about the "bread and butter" customers who shop there.

I basicallyy stopped buying there when they stopped having paraffin oil on the shelves. Now I rarely go to Wal-Mart anymore unless I have a variety of goods that I want or need to buy.
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Old 09-22-2010, 08:26 AM
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Originally Posted by momymom
I've greatly reduced the amount of money I spend at Wal-mart. Their prices have skyrocketed here. I refuse to pay $4.50-5.00 for a pound of bacon, and on some brands as much as $6.00 or over $3.00 for a gallon of milk. I still have 3 kids at home, and Wal-Mart can't meet my needs anymore. I'll drive the extra miles to get the lower prices somewhere else. And get a bigger selection of goods on the shelf. It really gets under my skin when they only have 2 brands to choose from on the shelf, Wal-Mart brand, and a low end brand. Neither one that I want for my family.
I agree!!! The prices at our local Walmarts have gone through the roof!!! I seldom shop there. And I used to be a person who went 3 or more times a week to Walmart. Now I shop our local grocery store and the Target that opened just 3 minutes from my home. Walmart does have fabric, but they never get in anything new so I don't bother. I mainly buy fabric on line now.
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