So... Walmart is experiencing same-store shrinkage, and has for the 3rd straight quarter. Same-store shrinkage means that their year-over-year returns for individual stores is shrinking. They experienced growth, because they opened new stores over the last three quarters, but their stock dropped when they released the news of this same-store problem to the public.
They implemented a plan last year to use less shelf space for different sizes of products (meaning: cereal is one size, not multiple sizes per type) and that has back fired big time. The silent-hand has spoken, and it has said "Fine, I will go somewhere else!" So... they are suffering. That makes me happy.
The sadness I am feeling is because they are currently course correcting and changing this problem with their shelving space. Additionally, after reports came out that WinCo (a California based supermarket) has beating Walmart's prices over 80% of the time, Walmart has begun putting on the gloves. This means that they will drop their prices, which is the one thing that they are more capable of doing than any other retailer in the country.
Click HERE to read more about the Walmart news.
3 comments:
Test comment - I was able to comment.
FYI, WinCo is a Boise, Idaho based company. For this story they just happen to have checked prices in the california area. WinCo beats or matches prices on the majority of items that Wal-Mart carries and will continue to do so. WinCo is in Washington, Idaho, Nevada, California, Oregon, and Utah.
thanks anonymous. That is an original screen name.
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