Save money. Live better? If you’ve been shopping at the local Walmart $WMT lately, you may be surprised.
A tough economy even hits America’s largest retailer, as a reduction in staff has been taking its toll on the selling floor. After a recent Bloomberg article highlighted the ire of customers across the nation, it appears Walmart, too, is struggling with the “new normal” that is a leaner and meaner work force.
This comes at an inflection point for the company, as it struggles to devote even more floor space to fresh food & consumables in an effort to keep its one-stop destination status for its once-loyal customer base. However, as I’ve mentioned on this blog and on-air numerous times, today’s cost-conscious consumer is in the midst of “trading down” to dollar stores and other venues if the superstore can’t deliver its needs.
Bare shelves and long check out lines clearly don’t help matters. The dollar stores, Family Dollar $FDO, Dollar General $DG, etc., have gotten the message, and are nimbly seizing market share by adding scores of coolers and fresh food-often at better prices–to their selling floor. Even drug stores like CVS and Walgreen’s $WAG are getting in on the act.
However, sometimes being the biggest doesn’t always mean the best, and Walmart should communicate with its consumer sooner rather than later and address these widespread shortcomings of its staffing and shelf stocking, rather than stern denials in the press.
The company even issued debt yesterday, which offered a brief respite from the news cycle.
Today’s consumer could care less about loyalty. They are opportunistic, cash-strapped, and looking for the best deal–no matter the venue.
We have a saying in retail: “JUST TAKE THE MONEY.”
Remarkably simple, but one would surprised just how many retailers miss it. Walmart would be mindful to get back to basics-and fast.