Marge Laney

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...]

Project Impact, and the moves to hold on to the higher end shopper who veered into their stores in the throes of the recession contribute to the numbers we're seeing now. But, I think the biggest problem was SKU Rationalization which sent their loyal core to find their favorite brands elsewhere. Once they ventured off the Walmart reservation they found that they could get what they wanted at about the same price down the street. Now that Walmart is rapidly reversing the strategy and adding back the SKU's it's apparently not having much of an impact. When all you mean to your customers is 'cheap', it's hard to hold to them if they can find the same stuff at the same price or less elsewhere.