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rsmith6621

(6,942 posts)
Tue Mar 26, 2013, 01:47 PM Mar 2013

WalMart Showing Signs of Customer Fatigue....



http://www.bloomberg.com/news/2013-03-26/customers-flee-wal-mart-empty-shelves-for-target-costco.html


During recent visits, the retired accountant from Newark, Delaware, says she failed to find more than a dozen basic items, including certain types of face cream, cold medicine, bandages, mouthwash, hangers, lamps and fabrics.

The cosmetics section “looked like someone raided it,” said Hancock, 63.

Wal-Mart’s loss was a gain for Kohl’s Corp. (KSS), Safeway Inc. (SWY), Target Corp. (TGT) and Walgreen Co. (WAG) -- the chains Hancock hit for the items she couldn’t find at Wal-Mart.

“If it’s not on the shelf, I can’t buy it,” she said. “You hate to see a company self-destruct, but there are other places to go.”
13 replies = new reply since forum marked as read
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WalMart Showing Signs of Customer Fatigue.... (Original Post) rsmith6621 Mar 2013 OP
I don't think I would classify it as customer fatigue Sherman A1 Mar 2013 #1
Message auto-removed april dreamweaver Mar 2013 #9
I rarely go into a Wal Mart Sherman A1 Mar 2013 #11
Customer Fatigue is... WalMart's policy to NEVER let a checkout line have fewer than 3 customers. TheBlackAdder Mar 2013 #2
That's a good one... lame54 Mar 2013 #6
I've never had to wait more than 3 minutes to get to a register at any Target! TheBlackAdder Mar 2013 #7
I have been to many targets in many necks... lame54 Mar 2013 #12
Perhaps store competition here is just too great? TheBlackAdder Mar 2013 #13
Hard to tell if it is a supply chain problem dixiegrrrrl Mar 2013 #3
They all look fatigued to me. talkingmime Mar 2013 #4
Walmart Deploys Solution to Optimize On-shelf Availability Sherman A1 Mar 2013 #5
Gee ...I thought that was a store manager job. n/t L0oniX Mar 2013 #8
It's simple, actually Glitterati Mar 2013 #10

Sherman A1

(38,958 posts)
1. I don't think I would classify it as customer fatigue
Tue Mar 26, 2013, 01:52 PM
Mar 2013

but, more along the lines of "you can't sell what ain't there."

Dirty Stores, Empty shelves and consistently empty shelves & displays tell the customer that their needs are not important to the store and therefore they need to go somewhere else to buy the item(s) for which they are looking.

Pretty Much your in-stock & in business our you are out of stock and no matter what else you have in that store, on those item(s) you are out of business.

Response to Sherman A1 (Reply #1)

Sherman A1

(38,958 posts)
11. I rarely go into a Wal Mart
Sat Mar 30, 2013, 01:56 PM
Mar 2013

I visited one with my Sister in Louisiana last year and found the conditions I mentioned. The shelves were gutted in several sections and the floor was dirty along with the lighting be poor.

I visited a nearby store about 18 months ago when they added their grocery section (to use the free $5.00 coupon they mailed). The new grocery section had large areas of shelving that were empty and the store looked pretty bad to me.

At a city council meeting this past Autumn in which a new Wal Mart store was being discussed, an individual spoke who served them as a vendor. He commented that while Wal Mart"s store will be new, within a few months it will be unkempt and dirty due to chronic understaffing.

I make my observations based upon 40+ years of retail experience in two different industries, I do know what a clean, fully stocked, well lit, well merchandised store looks like and it has nothing to do with the ethnic background of the customer, but rather the store management and corporate culture.

As to your co-worker's comment about the shopping mall, well, perhaps when they saw it, it was indeed dirty and there was no other inference beyond what they saw at the time they were there.

As to what you think about me and my observations, well that is up to you.

TheBlackAdder

(28,167 posts)
2. Customer Fatigue is... WalMart's policy to NEVER let a checkout line have fewer than 3 customers.
Tue Mar 26, 2013, 02:09 PM
Mar 2013

Yes.

WalMart does not want the customer to become accustomed to having a short line, since you are getting a price break.

They will close down idle lines to keep the queue depth at 3 or more.

===

In contrast, Target will open up another line when the queue depth is greater than one, if they can.

TheBlackAdder

(28,167 posts)
7. I've never had to wait more than 3 minutes to get to a register at any Target!
Sat Mar 30, 2013, 01:04 PM
Mar 2013

Perhaps in your neck of the woods it's different, but in NJ Target opens a line when 2 or more people are in it.

TheBlackAdder

(28,167 posts)
13. Perhaps store competition here is just too great?
Sat Mar 30, 2013, 02:21 PM
Mar 2013

You can drive in a 10 mile radius and hit at least 2 WalMarts, 2 Targets, a boat load of CVS and WalGreens, multiple super markets, one or more malls and a bunch of discount stores.

dixiegrrrrl

(60,010 posts)
3. Hard to tell if it is a supply chain problem
Tue Mar 26, 2013, 02:11 PM
Mar 2013

or lack of employees to stock shelves problem.

I have been reading about this for a bit, ever since a Wal Mart Exec. said this was the worst quarter for Wal Mart ever.

"In case you haven’t seen a sales report these days, February MTD sales are a total disaster,” Jerry Murray, Wal-Mart’s vice president of finance and logistics, said in a Feb. 12 e-mail to other executives, referring to month-to-date sales. “The worst start to a month I have seen in my ~7 years with the company.... That points to our competitive landscape, which means everyone is suffering and probably worse than we are”

http://www.zerohedge.com/news/2013-02-15/wal-mart-stock-drops-after-it-says-february-sales-total-disaster-worst-montly-start-

but if Target and other competitors have well stocked stores, then an over all supply chain problem does not seem to be the cause.

Sherman A1

(38,958 posts)
5. Walmart Deploys Solution to Optimize On-shelf Availability
Wed Mar 27, 2013, 06:47 AM
Mar 2013

Walmart is using a new solution that combines business intelligence, technology and store coverage to address on-shelf availability for the retailer and its manufacturer partners.

Called OSA Now, and developed by Plano, Texas-based Crossmark, the solution uses sophisticated algorithms -- customized for each supplier -- to identify store/item combinations that have a high likelihood of having an OSA problem. Typical issues include out-of-stocks, incorrect on-hand inventory, or products that are not on the planogram.

“OSA Now leverages services unique to Crossmark,” said Ken Drish, VP of business development for Crossmark. “The first is the collaboration between Crossmark’s business insights group and third-party data companies to create custom algorithms for each client, in each category and segment. The second is our retail model which has reps in all stores an average of more than twice per week, allowing reaction to the data faster than anyone else in our space. The third is our ability to measure the impact and show our clients their return on investment.”

With daily alerts, Crossmark retail representatives are able to quickly check whether products are on the shelves, whether a shelf tag is in place, or if there is another problem that is preventing sales of the product.

http://www.progressivegrocer.com/top-stories/headlines/technology/id37678/walmart-deploys-solution-to-optimize-on-shelf-availability/?cid=homepage

 

Glitterati

(3,182 posts)
10. It's simple, actually
Sat Mar 30, 2013, 01:19 PM
Mar 2013

WalMart employs a typical 'grocery' store behavior - they move stuff around all the time. Change whole departments, and shelves within departments. It's supposed to make you travel the store more, picking up stuff you don't need.

The problem is that the Super WMs are too big to do that. One day, recently, I went in to pick up some household goods and ended up traveling from one side of the store to the other 3 times looking for what I wanted. Since I am sick, those trips were just too much for me. By the 3rd time I was told the product I needed was on the other side of the store, I just walked out.

I don't go to WM to get my daily 'exercise' through shopping; I only go there out of bare necessity to avoid 3 stops when I'm ill. Since traveling a WM store is equivalent to my getting in and out of the car at 3 PLEASANT stores, I have no reason to go to that gawd awful storage building with no amenities to spend money after waiting in line to check out after my 'workout.'

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