Sunday, February 6, 2011

Wal-Mart's Challenge

Wal-Mart's prices have been on the rise for a while. One customer got fed up with it and went from twice every week to twice every month. Some people just got tired of paying for prices they didn't have to before. Target had this deal where customers could save 5 percent on their entire purchase if they bought Target brand clothing. Most people then decided to skip out on Wal-Mart when buying new clothes. Places like Target seemed much more logical because the money you save would be greater. Wal-Mart's revenue went down, and of course they were not satisfied.

Some customers were also complaing that Wal-Mart was not neat enough to enjoyably and safely shop around in. It became almost a hassle to do. What could this do to business that was already declining? How could Wal-Mart as a corporate wide company fix the pleasure of their guests? Their answer was to make changes within the store itself. A few things such as widening the aisles and removing clutter made the customer's trip to Wally world much more enjoyable. There was a high demand for these renovations and in return, their revenue went up. Customers started to come back and shop more and more at Wal-mart than other stores with the same goods. Things started to rise again, but not their prices.

http://news.yahoo.com/s/ap/20110206/ap_on_bi_ge/us_wal_mart_s_challengehttp://

7 comments:

Smith said...

Why are prices rising at Wal-Mart?

Cara Sheffer said...

They could not find stability in their products. I think that they were trying to compete with some of the other business out there. It turned against their favor quickly, but most felt that it was worth a shot. They are now going down because of the popularity of the store is going up as well, so there are more customers to buy their products.

Alison said...

Walmart really needs to be careful about what they do with their prices. Honestly the foundation of their business is low prices all the time. It attracts average people looking for a bargain and also people with a lower income who can't afford to go to places like Tom Thumb. If Walmart loses their price angle, they could fall a long way down.

Garrett T. said...

Walmart finally did something to help other business. It's already bad enough that they drive small businesses down into the ground. At least Walmart is feeling the pressure now. Maybe now their monopolization can finally be put an end to at some point.

Cara Sheffer said...

I do not think that Walmart is monopolizing on anything. They have other competitors who give them a run for the money, and clearly shocked them enough to call for some action. They were just not seeing the numbers that they wanted but it backfired on them. Walmart does not need to change much because people with little money can go there and not waste what they don't need to. It was successful as it was.

Ethan said...

I agree with Cara, I don't think that Walmart is monopolizing the grocery industry, but I am seeing less and less family owned stores. I'm not sure whether this is because bigger companies like Walmart, Tom Thumb, and Kroger are buying them all out or if they are bullying them out of the market. On another note I think that Walmart should definitely stick to their low prices because it is helping more than just Walmart, by this I mean all the people who can't afford to shop at the aforementioned stores.

Matthew said...

Wall-mart's only issues are not price and store friendliness, their is also product quality. With Wall-mart's rates rising the quality of the products they are/were providing did not change. You as a consumer were still getting the same low-quality, low durability clothing as before. From personal experienced I have noticed most clothes or off brand products found at Wall-mart have really low standards. Clothes would only last for 2-4 washes and other house hold items would fall apart in weeks. After considering this, Wall-mart needs to do more then just clean up the stores and lower prices, they need to get products that have a better lifespan and quality.