W. Frank Dell II, CMC

Wal-Mart Looks to Reverse Same-Store Slide

August 18, 2010

FROM RETAILWIRE:
The good news for Wal-Mart and its investors is the world's largest retailer posted a higher-than-expected profit in the latest quarter. The bad news is that same-store sales fell for the fifth consecutive quarter. What is your assessment of Wal-Mart's performance in the past year or so and what do you expect from the retailer going forward?      [more...]

Any time a retailer has a price rollback, they are telling the customer they were charging too much before, but now it's cheaper. For an every-day-low-price retailer, this is the kiss of death. You have lost credibility with customers. Now trust must be re-earned.

On the other side, why is Wal-Mart not talking about the all new super duper private label program? Any time you change the mix between branded and private label you expect a decrease in sales dollars and an increase in profits. If the program is working, these are the expected results. And last but not least, when you discontinue products you run the risk of marginal customers leaving. The retailer might like win, place and show, but how about the customer?