Wal-Mart shows signs of self-destructing
Empty shelves and longer checkout lines are pushing many customers to Target and other rivals. What's going on?
Love it or hate it, Wal-Mart (WMT) has long been held up as a paragon of operational efficiency, spawning business school case studies and inspiring rivals to copy some of its techniques.
But recently, the retailing giant has been off its game. First, it issued a dire warning last month that February sales were a "total disaster" because of higher payroll taxes. Then, it blamed late tax refunds for a sales slowdown.
But a new report suggests that delayed refunds and tax hikes might be only part of the picture and that the retailer itself shoulders much of the blame.
"If it’s not on the shelf, I can't buy it," retired accountant Margaret Hancock told Bloomberg, describing a recent visit to Wal-Mart when she failed find a dozen basic items. "You hate to see a company self-destruct, but there are other places to go."
What's causing the problems? According to the article, Wal-Mart has the merchandise, but it's not hiring enough staff to restock shelves.
That's illustrated in the disparity between Wal-Mart's store expansion, with the company boosting new locations by 13% over the past five years, and hiring, which rose a measly 1.4% during the same time, Bloomberg notes.
Checkout lines are getting longer, and customer service has suffered, the article says.
A recent visit to a New Jersey Wal-Mart found only 12 out of 30 registers open, with lines about five customers deep, Bloomberg said. Shelves had empty spaces "large enough for a grown man to lie down." No surprise, then, that Wal-Mart placed last in among department and discount stores last month in the American Customer Satisfaction Index.
Wal-Mart said Bloomberg's report is "inaccurate and not representative of what is happening in our stores across the country."
Meanwhile, labor issues are creating a headache for Wal-Mart on another front. The company sued a major grocery workers union, citing alleged "disruptive tactics" and "illegal trespassing," as my colleague Jason Notte wrote on Tuesday.
Regardless of what's causing Wal-Mart's problems, rolling back both customer service and available merchandise generally isn't considered a recipe for retailing success.
not to mention the fact that you have to watch every single thing that is rung up as they are
famous for the price on the shelf not being the price that rings up.
Up here in Maine the lines waiting to check out are longer than 5 deep, usually more like 15 deep. The shelves aren't as well stocked and the usual shuffle of items on the shelves aren't helping much.
As a former employee of Wal-Mart, let me share some helpful hints. If you have the money buy your cat food, your underwear and your shampoo someplace else. Wal-Marts prices are low for a reason.
For those of you who are made of sturdier stuff never go shopping at Wal-Mart:
1. On the first week of the month. That is when a lot of the government checks come out. We use to call that Lowlife week. LOL!
2. Weekends and school holidays. Many people go to Wal-Mart because its entertaining. I use to see the same people 3 or 4 times a week. Sad but true. Weekends and school holidays are the worst.
3. The lines are shortest before 9:00 am during the week.
You can order a lot of their stuff online now.
I know this, if Sam Walton were still alive those people in charge in Bentonville would not be able to get work in Walmart as cart pushers.
I stopped shopping at Wal-Mart over their accepting check policy. If you require my signature on my check you accept my check. I will not sign both electronic and my check. Then you give my check back and put the blame back on me if I loose it and some one uses it fraudulently. Nope. Made me so angry that I drive almost 80 miles one way to do my serious grocery shopping. I have not stepped into one since. Every time, I tell someone this they shake my hand and tell me,"Me Too." So set aside the empty shelves, low pay, poor treatment of customers and employees, the automated ordering system (that never stocks the proper local items), long lines, crashing small town economy and the cheap junk they sell. I can get the same stuff else where and not have to be upset or frustrated. Thank you Wal-Mart for less stress. Oh, not that it matters your sales from one customer alone was approximately $300.00 a month nothing really until you start add how many people quit shopping at your locations. :) Happier now.
If it does go under the top dogs won't suffer.They probably already have profits hidden on foreign shores.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
- Aug gold fell into negative territory in morning action as the dollar index strengthened after an advance GDP reading showed a 4.0% expansion during Q2 (Briefing.com consensus expected GDP to increase 3.2%). The move lower also came ahead of the latest policy statement from the FOMC released at 14:00 ET. The yellow metal slipped from its session high of $1303.00 per ounce and spent the remainder of the session trading in the red. It eventually settled with a 0.3% loss at ... More
More Market News
The glory days are over for big-box retailers as consumers search for more convenience, say Goldman Sachs analysts.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'