Tuesday, July 08, 2014

Bet on smaller store Walmart and booze to lure customers

Now under the direction of Chief Executive (CEO) Doug McMillon, Walmart is changing the focus to smaller stores and online sales in the hope of attracting more customers with faster, more efficient services. The move marks a shift in strategy for decades in the United States, based on building larger stores and price reductions.
This year, the retailer plans to open about 300 smaller stores, more than double the number of hypermarkets.
According to analysts, the price difference from Walmart for competitors like Target and Kroger fell from about 20% to 5% in recent years, lessening the advantage of hypermarkets on the stores more convenient for the consumer looking for basic items like cereal and milk.
Article published in "The Wall Street Journal" shows how the new CEO is trying to reinvent the world's largest retailer. Another strategy to attract customers with more regularity and exceed six quarters in a row of drop in traffic of stores is boosting sales of alcoholic beverages.
Walmart intends to double its sales of alcohol until 2016, adding more beer-runners, wines and distillates and bringing drinks to the front of the stores.
According to Walmart's employees, the network also studies build exclusive shops of drinks in States such as Florida, that prohibit the sale of alcoholic beverages in supermarkets.
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