Wal-Mart as a Small Store Retailer

Lauren Sellers, University of North Georgia
Cori Rader, University of North Georgia
Austin Reach, University of North Georgia
Daniel Millard, University of North Georgia
Rebecca Hummel, University of North Georgia

Description/Abstract

The most successful grocery retailer, Wal-Mart, recently announced that their market shares fell 2.2 percent in morning trading. Executives claim the unfortunate drop is due to sharp cuts in food stamp benefits and higher payroll taxes. To battle the drop in shares, Wal-Mart plans on increasing its number of small stores to reach new kinds of customers. If the amount of smaller Wal-Mart stores increase, customers will be more likely to stop in and pick up products mid-week. It would provide quick satisfaction for customers and increase profits for Wal-Mart simultaneously. The retailer plans on extending their e-commerce capabilities to assist customers as well. They believe this will attract more business with the ease it will provide, particularly through the holiday seasons. Executive, Doug McMillon, also explains that Wal-Mart is going to use price investment to revive sales and believes that by using these tactics Wal-Mart’s market share will escalate.

This article covers unplanned change, which is a change that is imposed on an organization and is usually unforeseen. It also covers the environment, which is “anything outside the boundaries of an organization” (Nelson & Quick, 2013). This is shown with government interactions and the shopping patterns of consumers. The situation Wal-Mart is facing presents many opportunities, which they have taken advantage of by announcing their plans to double small-store construction. Lastly, Wal-Mart has centralized power, meaning its high-up officials control the company and individual store managers have very little influence over the prospects of future stores.

 
Mar 31st, 10:00 AM Mar 31st, 11:30 AM

Wal-Mart as a Small Store Retailer

DETI 3rd Floor of Library

The most successful grocery retailer, Wal-Mart, recently announced that their market shares fell 2.2 percent in morning trading. Executives claim the unfortunate drop is due to sharp cuts in food stamp benefits and higher payroll taxes. To battle the drop in shares, Wal-Mart plans on increasing its number of small stores to reach new kinds of customers. If the amount of smaller Wal-Mart stores increase, customers will be more likely to stop in and pick up products mid-week. It would provide quick satisfaction for customers and increase profits for Wal-Mart simultaneously. The retailer plans on extending their e-commerce capabilities to assist customers as well. They believe this will attract more business with the ease it will provide, particularly through the holiday seasons. Executive, Doug McMillon, also explains that Wal-Mart is going to use price investment to revive sales and believes that by using these tactics Wal-Mart’s market share will escalate.

This article covers unplanned change, which is a change that is imposed on an organization and is usually unforeseen. It also covers the environment, which is “anything outside the boundaries of an organization” (Nelson & Quick, 2013). This is shown with government interactions and the shopping patterns of consumers. The situation Wal-Mart is facing presents many opportunities, which they have taken advantage of by announcing their plans to double small-store construction. Lastly, Wal-Mart has centralized power, meaning its high-up officials control the company and individual store managers have very little influence over the prospects of future stores.