The Wal-Mart Weekly: back to customer service basics


Welcome to the 16th installment of The Wal-Mart Weekly, a weekly column dedicated to bringing you insight, wit, facts, results, opinions and just a bit of everything else when it comes down to a very hot topic these days: Wal-Mart.

Last week I mused on how Wal-Mart Stores (NYSE: WMT) could possibly grow sales and reclaim lost market share by delving into the filling of niche needs. Wal-Mart has been hit hard recently by slower sales and competition from more nimble competitors like Target (NYSE: TGT). Could the sales of more specialized merchandise assist the world's largest retailer in regaining its footing?

With Wal-Mart officials admitting that existing stores is more important than expanding right now, what exactly could be done in the customer service arena to make Wal-Mart more customer friendly? Let's find out.

Basic customer service -- checking out

The last three or four times I visited a Wal-Mart, the process of actually purchasing something was about a 1 on a scale of 1 to 10. Let me break it down: the checkout lines, while plentiful, are vastly underused from what I've witnessed. In a local Wal-Mart Supercenter, 15 to 16 of the 22 or so checkout lines generally sit unused while waiting customers sit tight patiently waiting their turns in line to, you know, pay for merchandise. I've never understood checkout line logistics (and maybe I shouldn't), but studying traffic flows, seasonal customer flow, time of day traffic and other variables to staff checkout lines as efficiently as possible to allow for a quick, efficient and happy customer checkout process should be a top priority.

Here's why: Wal-Mart needs more than just "everyday low prices" to keep customers coming in the door day after day. Service is actually starting to count again with millions of customers, and from what I have seen, Wal-Mart need severe help in this area. It could start by making sure each and every customer is checked out as fast and efficiently as possible.

The do's and dont's of self-checkout

I've noticed that almost every Wal-Mart store (all Supercenters) that I've been into recently have self-checkout lines. These are meant to allow customers to pay for their merchandise as quickly as possible and exit the store. In concept, this strategy works great. Wal-Mart saves on employee costs and puts much of the work into the hands of the customer. What the retailer probably did not anticipate was the actual demand for this service. On no less than three recent occasions, all six self-checkout lanes in a local Supercenter were backed up with lines just as long (if not longer) than employee-staffed checkout lines. Houston, we have a problem here.

It seems to me that, kind of like in automated electronics manufacturing facilities, global retailers like Wal-Mart could have re-configurable checkout lanes that could be staffed by employees for normal loads, for "express" loads (20 items or less) or for self-checkout loads. These lanes could be changed in a few minutes to accommodate seasonal and even weekly changes in customer traffic to ensure the smoothest flow of customers possible with the shortest wait times and most efficient handling of customers as any global retailer could want. Automakers and computer hard drive makers employ this methodology in manufacturing lines -- why not retailers?

Cleanliness and clutter -- and access to shopping aisles

With all (I think) Wal-Mart Supercenters now operating 24 hours a day, when are the best times for inventory personnel to re-stock shelves? I would think this would be from about 10pm to 6am, as customer traffic takes a drastic drop during the night hours. All those merchandise pallets should be able to wait in the back areas until those times, and then be wheeled onto the customer floor so Wal-Mart's shelves can be replenished. Does this happen? Not from what I've seen.

Regularly, I'll see full or half-full pallets of merchandise blocking certain portions of Wal-Mart's grocery aisles in the mid-afternoon to evening hours -- which most likely are Wal-Mart's peak shopping hours. I can understand the need to refill certain categories of merchandise during peak hours, but blocking your customers from other merchandise in the process is probably not the wisest move. Now, almost all retailers I've seen do this (which continues to confuse me), but if Wal-Mart is really serious about recruiting new and former customers back into its stores, the customer experience basics need to be met first and then the differentiating factors from the competition -- like not blocking access to aisles during the daytime shopping hours -- should be met second.

The basics of handling customer should be a top Wal-Mart focus area

If Wal-Mart were to make changes to the simplest of customer handling -- things like speedy checkout, re-configurable checkout lanes and providing clean and quick access to all aisles during peak shopping times -- it would one-up the competition and create competitive advantage. This would come at a time when the retailing behemoth needs to concentrate on growing sales and customer loyalty at existing stores and stop the tunnel vision on opening new stores for growth.

If Wal-Mart has the guts to not only meet, but beat, the customer shopping experiences basics of discount retailing, perhaps customers would come back (and spend more) in droves. That would make the retailer pretty happy I'm guessing. The above are just a few examples of "customer delight" I can think of. There are bound to be plenty more.

Thanks for tuning into this week's edition of The Wal-Mart Weekly. I hope you've enjoyed this week's column, and I'll see you next week right here at BloggingStocks. Have a great weekend!

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