Is Wal-Mart Stores, Inc. (NYSE: WMT) looking to smaller-format stores to try and revive sales here in the U.S.? In a retailer known for landing huge, big-box locations all over the country to make it easier to have a "one-stop shop" for customers, has this strategy been tapped out? Possibly so -- something I looked at last week in my Wal-Mart Weekly column. But what is the solution? Is the opening of smaller stores seen as a retrenchment or a refinement of strategy for Wal-Mart?It's a last-ditch effort to revive struggling sales in the light of a rather disappointing 2006 for the retailer. While it saw record revenues for that year, profit windfalls did not follow, which speaks of loss-leader selling and moving merchandise without ramping up profit at the same time. After all businesses are in the business to make money, not just sell -- without profit -- right? It makes sense for some companies to forgive profits to build market share, but Wal-Mart is way, way beyond that point.
The New York Post said this week that Wal-Mart may be considering stores as small as 20,000 square feet, quite a drop from the 100,000 square-foot Wal-Mart Supercenter. Can Wal-Mart get into communities that have shunned the larger-format Supercenter with a small-store strategy? Perhaps -- and it's a good growth strategy as the retailer runs into roadblocks in certain areas of the country that won't permit the "big-bog" fare in their areas. Here's something to chew on: Wal-Mart's promoted a former Tesco executive (David Wild) to the position of senior vice president, new business development. An exec from Tesco, the largest supermarket chain in the U.K., may be just what the retailer needs to grow here in the U.S.
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Reader Comments (Page 7 of 7)
5-10-2007 @ 5:22AM
Pauline Scott said...
If indeed angeleyes is correct and this is the reason they took away the layaway, then I apologize.
But why has Walmart not said this. Why do they not
defend there actions, and provide the statistics.
As for employee attitudes, they do need to work on some of them, and again I am not referring to all and offer apologize to anyone offended.
5-10-2007 @ 5:36AM
mothman said...
TO ALL YOU PEOPLE WANTING TO DEAL WALMART A BLOW,DONT BUY PLASTICS!THATS WHERE THE MAD MONEY PROFITS ARE,THOSE PLASTIC TOTES AND BLOWMOLDS(FROSTY THE SNOW MAN) COST PENNYS TO MAKE AND SELL FOR 19.99.AS I WATCH THEIR PRICES ON PAPERTOWELS AND LAUNDRY RISE THRU THE ROOF.I GO DOLLAR GENERAL.MOTHMAN
5-10-2007 @ 5:45AM
Cher said...
I hate the BIG Walmart Stores....I was very happy with our smaller Walmart. I knew where everything was at, plus I didnt hafta walk my azz off to get what I needed. I have bone spurs in my knees and feet...and Walmart going Super-sized sure sucked for me. Bring back the smaller stores.Besides, wtf wants to shop for food, same time you're shopping in Walmart. To me going shopping at Walmart, was like a break from all the everyday hum-drum of grocery shopping, etc. It was like I'm going to walmart...screw all the work. Grrr, I say bring back the old walmarts.Cher
5-10-2007 @ 6:01AM
karen said...
D. LEDOUX: KMART STILL HAS LAYAWAY, AND THEIR CLOTHES ARE BETTER THAN WAL-MARTS CRAP. TRY THEM!
5-10-2007 @ 6:17AM
rdywenur said...
Good idea as long as it keeps getting smaller and smaller till they disappear into thin air. FOREVER
5-10-2007 @ 6:29AM
RMC said...
I'm sick of hearing how Wal-Mart abuses employees. Have any of you ever worked for them? They treat employees the same as any other company, trying to get the most production out of people in the shortest time. It's called efficency. Speaking of which, brings me to the layaway issue. Sure during "back to school" and Christmas, layaway was busy. But what about the rest of the year. Wal-Mart still had to pay to have someone run the area for 3 shifts, 7 days a week. The majority of the people would forget about the layaway and then all that merchandise has to be put back onto the sales floor.
Then dealing with irate customers, who through their own fault, lost their items. Wal-Mart has begun a program that is called "Site to Store" where customers can order items on line, pay for them and not have to pay for shipping by having it sent directly to the store. Even though it's already paid for and all they have to do is pick it up, items are left for 3 weeks, only to have to send them back to Wal-Mart.com because no one has come to get it! People are their own worst enemies.
When you mess with the system, it's bound to change the way things are done, it's called adaption! Quit trying to put the fault on Wal-Mart when it's you as consumers who are making them re-think the way they do business!
5-10-2007 @ 6:53AM
william berberich said...
This is ironic. Wal-Mart comes to the small town, puts every Mom and Pop store out of business, treats their workers like 3rd rate ctizens and then comes back to buy the Mom and Pop store. Of course they are selling some China products that may have been produced in this town at one time. Oh thank you Wal-Mart for producing ten jobs for the hundred you destroyed!
5-10-2007 @ 9:06AM
Dale Roy said...
Well, What to say except It was K-mart as the super store now they are mostly gone. Wal-mart is definitely following in their footsteps, meaning Wal-mart will downsize then cut stores and eventually be gone. Now it is Big-Lots coming down the stretch for the future lead. Wal-mart caters to illigal Immigrants and over seas buying, So I say good ridance to you Wal-mart, you screwed yourself. Sure your money has been made but the scandel is up.
5-10-2007 @ 3:03PM
Kevin said...
Stupid Idea. If they downgrade, then they wont have as big of selections. I like to choose from a varitey of games, not just 1. The picture of the store looked smaller then the electronic section in a Wal-Mart, let alone a super Wal-Mart. And instead of it being Wally World, it will be Wally Town.
5-12-2007 @ 12:55AM
tracie said...
i can't not believe that some of the people on here are saying about how walmart is the "chinese goods" buyer. target and kmart sell pretty much the exact same items as walmart and how come no one is dogging them? and i want someone who has or has not worked for walmart that posted on here about how bad the benefits are and how bad walmart treats their employees to please explain yourself and how you got to that conclusion. esp. the ones that have not worked for walmart. i would like to hear it. with the medical benefits i have through walmart i did not pay one penny out of my pocket on the $20,000 hospital bill for my daughter,plus i had the sick day benefits backup so i would not lose any pay while she was there. i don't think there is any way i could get benefits like that working for a little mom and pop corner store. finally,why is walmart the only bad guy? what about home depot and lowes? aren't they running the little mom and pop hardware stores out of town? but walmart is the only money hungry,don't care about the little people corporation around. okay,got it.
5-19-2007 @ 12:12AM
Linda said...
WalMart is like any other business for profit or nonprofit. They look at dollar sign more than anything else. An for the size of the store, well I may only be middle aged, but I still find it easier to shop drug stores like wal-greens and cvs for many items. One because the stores are small enough and they carry the same products that walmart does, and you don't have to walk a mile throughout the store to find what you need and the drug stores are not crowded, so you are in and out. Besides many retailer do competitive pricing. For the consumers, we just need to be smart shopper and keep some of those dollar signs in our pocket. Think about it there are many ways of saving a buck. With gas prices on the rise, prices will be going up all over not just at the gas pumps. Consumers pays the cost of inflation for all businesses.
5-20-2007 @ 1:05AM
Elliot Fiser said...
I was in a Walmart in Waukegan IL recently at 5pm on a weekday. I watched in disbelief 50 or sixty shoppers backed up at the front of the store with only 2 out of 20 checkout lanes open.I shouted " Hey wally lets get some women to run this place maybe we will get home tonight!" It wasn't long several lanes opened up.
5-21-2007 @ 12:31AM
LORRAN said...
BOYCOTT WALMART,WALMART DESTROYS COMMUNITIES AND PERPEUTATES POVERTY!
5-21-2007 @ 12:50AM
7 said...
I AGREE DON'T HAVE CHILDREN YOU CAN'T AFFORD!
I CANNOT FEEL SORRY FOR THE HOARDS OF PEOPLE THAT ARE POPPING OUT CHILDREN WITHOUT ANY FORETHOUGHT WHATSOEVER...(USUALLY AS FAST AS THEY CAN GET ACROSS THE BORDER AND PULL THEIR PANTS DOWN STUFF ALL SIX OF THEM IN A TWO BEDROOM APARTMENT , PUT GOLD AROUND THIER NECKS,AND THEN SAY , WE CAN HAVE ANOTHER ONE AND GIVE IT, CLOTHE IT, AND FEED IT, CUT RATE GARBAGE TOO,BECAUSE THE HAVE LAY AWAY!!)UUGGHHHHHHHHHHH
MOST PEOPLE ARE BRAINWASHED INTO BELIEVING THAT IF THEIR CARTS AREN'T COMPLETELY FULL OF USELESS CRAP , AND THEIR HOMES ARENT FILLED TO THE BRIM IN EVERY NOOK AND CRANNY WITH USELESS GARBAGE(THAT WILL EITHER FILL YOUR HOME AND GATHER DUST OR FILL LANDFILLS) THAT THEY ARE DOING WITHOUT... JUST LIKE THEY ARE BRAINWASHED THAT THEIR CHILDREN WITHOUT FAIL NEED A FULL NEW WARDROBE EVERY FALL NO MATTER WHAT YOU HAVE THAT IS STILL USEFUL..(DISPOSABLE FASHION ..I USE THAT TERM LOOSELY.. IS AND ENEMY OF THE EARTH ..
MY LOCAL WALMART GROCERY COULDN'T MAKE IT HERE, SO THEY CHANGED ALL THE GROCERY ISLES AND INFO TO SPANISH, THEY FOUND A NEW 3RD WORLD CUSTOMER FOR THEIR 3RD RATE CRAP... AFTER MOST 'AMERICANS' ARE SICK OF BUYING FROM THEM...AND DEALING WITH THEIR GARBAGE ..
GUESS WHAT... I , AND MY FAMILY BOYCOTT WALMART AND WE HAVEN'T HAD THE FLU IN 2 YEARS ..AND I DON'T MISS BEING TRAMPLED, RUBBED ON , AND HARRASSED BY THE DISGUSTING 'CLIENTELE' THERE... YOU TRULY GET WHAT YOU PAY FOR...
I ACTUALLY HAD A WALMART EMPLOYEE BE EXTRAORDINARILY RUDE (NOT EXAGGERATING) , I ASKED TO SPEAK WITH HIS MANAGER AND HE STARTED INSULTING MY RELIGION BECAUSE I HAD A CROSS ON MY NECKLACE.. WHEN I WENT TO MAKE A REPORT WITH THE MANAGER (FINALLY) SHE ALLOWED WORKERS TO HARRASS ME WHILE I WAS MAKING THE REPORT MAKING COMMENTS, THAT 'I' SHOULD BE ASHAMED OF MYSELF FOR MAKING HIM POSSIBLY LOSE HIS JOB , BECAUSE HE ONLY MAKES $6 AN HOUR.. I GUESS THIS GIVES HIM THE RIGHT TO INSULT ME AND MY RELIGION ... HMMMM GO FIGURE , I DIDN'T KNOW THIS...
6-07-2007 @ 5:35PM
marion davis said...
hi walmart i think you are the greasts store anywhere so i would to know why you are not in central ca, with a super store we could sure use it. in paso robles ca. where real peiple live and can afford to shop in walmart. people who don't make a lot of money. it took 3 years to get the walmart here . it needs to be bigger. come on guys lets get a super store the people who are aginst it are the first ones in the door the day it opens.
7-10-2007 @ 6:53PM
DeLora Ray said...
I was recently terminated from A Customer Service Manager position at store #3660 in Chattanooga, Tennessee. I had worked for Wal-Mart for 18 months. I was terminated for "placing an inadequately-trained associate on Customer Service desk" because she lost the store $2600 in a MoneyGram Fraud. This particular associate had been working at Customer Service for at least six months. The notification of the moneygram scam had been posted at Customer Service Desk for quite some time. My front-end manager had told the Cust. Svc. desk associates to read the notification and to initial it. This associate had read the notification. On June 8, this associate took a call from someone who claimed to be an employee for Moneygram. The associate made this transaction without once calling me to Cust. Svc. desk to verify. As a matter of fact, approximately 30 minutes after she committed this fraudulent transaction, she nearly lost even more money as a customer without an ID wanted to receive a moneygram. Fortunately, I was at Cust. Svc at this point and I stopped the transaction. This associate knew better. She had processed moneygrams before. The loss prevention manager was not allowed to complete his investigation of the incident. An associate manager conducted his own investigation. The associate who is responsible for losing the money still has her job. The other CSM who was there that night kept her job. But I was fired. When I brought to the attention of the Management that this assciate had access to the moneygram fraud notification, they still refused to give me my job back. Also, the discipline procedure is 1) a verbal, 2) a written, 3)d-day, and 4) termination. My first call to the manager's office was "a written." A verbal was completely skipped. My d-day was for a failure to complete audits. Other CSM's also failed to do audits. I spoke with one of them, and she reported that management did not reprimand her for that.
Bottom line is that I was discharged unjustly. I had been talking about the need for a union at Wal-Mart. I think that I was fired for that. I was one of the best CSM's in that store. You can ask anyone who works there. I believe that I was fired because I believe in operating a business for the customers and also for the good of the employees. When the news of the peanut butter tainted with salmonella hit the American airwaves, our management refused to pull it from the shelves. AS a CSm, I instructed every cashier not to sell it. Customers complained that it was still on the shelves. I was told by our associate in grocery that management was waiting from word from Bentonville. At 11:00 a.m. that morning, I took a jar of that peanut butter back to manager's office where several of the management staff were standing around. I said, "Who wants the first bite of this peanut butter?" It was then that they told me they were pulling the peanut butter. I saw a young African-American mother, who had to hide in a Women's Shelter from an abusive husband, turned down several times by management for a request to work daytime hours due to an 8:30 pm curfew set by the shelter. If I had been manager, I would have changed her hours immediately. I have watched a precious cashier suffer in pain from an injury she sustained at work, made worse by a surgery that did not work. She had to go to the Labor Board to make Wal-Mart carry through with its workman's comp. benefits. I have listened to the ligitamate complaints of different associates that management would not carry through with promises made. And the open door policy that Wal-Mart promotes as an alternative to union is a myth. Some of our associates are fearful of retaliation from management. I am living proof that they do retaliate. You may call (423) 821-1556 for equal time from store manager Ceasar Avalos.