Wal-Mart Plans to Pounce on the Recession’s Silver Lining
When the world’s largest public corporation (and largest private U.S. employer) tinkers with its highly successful business model, it’s hard not to take notice.
According to Wal-Mart executives who recently concluded a shareholder meeting, a recession is no time for wimps.
And it’s no time to rest on one’s laurels, even if the laurels include hitting the $400 billion mark in sales for the first time during its last fiscal year, according to a New York Times story.
Sales have been robust for the retailing giant during this recession, but the company’s head honchos have set out to build long-lasting relationships with its new, more affluent customers. Many of them set foot inside a Wal-Mart for the first time during this recession seeking refuge from higher prices elsewhere, and Wal-Mart’s betting that the sea change in consumers’ attitudes about spending will be a permanent one.
The company’s retention strategies include a new store design and remodeled layout that would make shopping — and checkout — a more pleasant experience. This means wider, more easily navigated aisles with lower shelves, as well as expanded food and electronics departments, two product categories that are selling briskly. The most popular items, including groceries, pet supplies, health and beauty goods, and baby products, will be located closer together so customers don’t have to schlep all over the store. There’ll be fewer brands, and the take-out food and deli areas will be relocated closer to store entrances to accommodate customers who want to eat on the go.
While many smaller businesses have already closed or are struggling to stay afloat, Wal-Mart has leveraged its massive buying clout to deliver on its mantra of low prices. (”Save Money. Live Better.”)
What’s your take? Does this bode well for consumers?
