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Wednesday, July 17, 2013

Speaking of Walmart

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Loeb is not the only one commenting on how bad the Walmart stores are-- there are hundreds of comments posted here on readers' mostly-bad personal experiences with Walmart, both as employees and customers.
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Why Are Walmart Stores Such A Mess?
By Walter Loeb, July 17, 2013

Over the years I have visited many Walmart stores and have seen some very disorderly stores. But I found a store in total disarray during my visit last Saturday to the Pittsfield, Massachusetts store (number 2228).  It was disturbing.

Everywhere I looked, whether it was the men’s, women’s or juniors departments, merchandise was not well assorted by style, size, or color. There was no fashion message; and the presentation was poor–goods hung loose on separate racks in a most unattractive way. In the women’s intimate apparel department there were many bras on the floor – certainly unappealing, not to mention an unsanitary condition.

It wasn’t just apparel that was in disarray–the rest of the store was also disorganized and out-of-stock; for example, the pharmacy area had many empty spaces on the vitamin shelves as well as in other categories. In the vacuum cleaner department there were some machines on display – but no back-up stock to purchase; some styles were in boxes but not on display.  There were many other departments in similar conditions.   No surprise in such a poorly kept store, the bathrooms were both filthy and in serious need of management’s attention—to me this shows the disregard management has for customers and employees—not a good message. (I have reached out to the company for comment).

What happened to this standard setting retailer? Walmart always prided itself on neatness, cleanliness and full assortments of merchandise. It was Sam Walton’s creed to offer his customers the best values that were available. I walked Walmart stores with “Mr. Sam” many times—he cared deeply about people–he knew associates’ names and often recognized loyal customers. Sam has been dead over 21 years and unfortunately as the company has grown beyond his wildest dreams it has become a bureaucracy. The year Sam Walton died, Walmart recorded sales of $43.9 billion. In fiscal 2012 sales reached an astounding $443.9 billion. Walmart stores achieved $264.2 billion in the United States, and $125.9 billion in international sales.

It seems size is now working against Walmart in many ways especially where it comes to holding the organization accountable for the customer experience. I believe that the company is dependent on strong supervisors throughout the company. They must spot weak stores–to me the Pittsfield, MA store is a weak operation. Too many times it appears there is no supervision in the store, and the sales associates seem to be afraid to step up and straighten visible flaws. In an effort to be profitable, I believe management has cut into operating staff and eliminated vital levels of management. This is visible in many Walmart stores where there are fewer sales associates, less management, and longer lines at the check-out register. However, no store I’ve seen has been as much of a disaster as store 2228.

Over the long run, if Walmart wants to remain a discount store leader with low prices and continue to serve customers with dignity and respect, it must pay attention to the appearance of the store, the genuine value of the merchandise it sells, and show appreciation for every customer. My recent visit to store 2228 in Pittsfield, MA was an insult to customers and a violation of the spirit of Sam Walton, suggesting bureaucracy is an issue.  Customers do notice, and so do competitors, in the dog-eat-dog world of discount retailing.
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