Save Money Live What?
June 2nd 2010 15:15
Save Money Live What?
Name Brand Ketchup for under $1, unbelievable! Cases of Coca Cola for under $4, scandalous! Wal-Mart is attempting to boost its lagging customer traffic with "deep discounts" on twenty two core summer related items. Rollbacks and saving money are a part of the mission statement for the giant retailer, but will this tactic work?
As a former Wal-Mart associate and frequent shopper, I know firsthand this tactic is short lived and will not be as sustainable as other company initiatives. The first reason the tactic is short lived is simple, the customers are realizing they don't have to settle for poor service just to get deals on their grilling supplies. The customer wants to get in and get out as fast as possible and we all know this is a challenge at a Wal-Mart Store.
Customers are willing to pay more for a shopper friendly environment. Many reasons customers leave an established business to never return is due to poor service. Secondly, the majority of Rollbacks are for a limited time. Which means the savings will be great for the summer, but what happens when parents are thinking about sending kids back to school?
Price increases are inevitable for the company to remain viable leading into the all so difficult third quarter. On top of decreased customer traffic, Wal-Mart US has to contend with decreased comparable store sales. Wal-Mart is banking on the International division as well the management of costs to improve their sales performance. Again, this will allow Wal-Mart to look good for the shareholders, but not get the foot traffic desired to maintain results. So to save Money and Live Better, Wal-Mart needs to push the Rollbacks aside and get a grass roots effort started to get the customer back in the stores and keep them shopping. Barring another financial meltdown, Wal-mart has some work to do.
Name Brand Ketchup for under $1, unbelievable! Cases of Coca Cola for under $4, scandalous! Wal-Mart is attempting to boost its lagging customer traffic with "deep discounts" on twenty two core summer related items. Rollbacks and saving money are a part of the mission statement for the giant retailer, but will this tactic work?
As a former Wal-Mart associate and frequent shopper, I know firsthand this tactic is short lived and will not be as sustainable as other company initiatives. The first reason the tactic is short lived is simple, the customers are realizing they don't have to settle for poor service just to get deals on their grilling supplies. The customer wants to get in and get out as fast as possible and we all know this is a challenge at a Wal-Mart Store.
Customers are willing to pay more for a shopper friendly environment. Many reasons customers leave an established business to never return is due to poor service. Secondly, the majority of Rollbacks are for a limited time. Which means the savings will be great for the summer, but what happens when parents are thinking about sending kids back to school?
Price increases are inevitable for the company to remain viable leading into the all so difficult third quarter. On top of decreased customer traffic, Wal-Mart US has to contend with decreased comparable store sales. Wal-Mart is banking on the International division as well the management of costs to improve their sales performance. Again, this will allow Wal-Mart to look good for the shareholders, but not get the foot traffic desired to maintain results. So to save Money and Live Better, Wal-Mart needs to push the Rollbacks aside and get a grass roots effort started to get the customer back in the stores and keep them shopping. Barring another financial meltdown, Wal-mart has some work to do.
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Comment by James Rickard
unlucky_ fishermen.com
Angling Fish
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