“Whilst we have pockets of leadership, in more competitive markets, our gap is too small and against some competitors, we are beaten,” Foran said. Walmart’s sixth priority is to regain competitive footing in retail by offering lower prices without compromising service or assortment. “Consider how important pharmacy is to Supercenters and Neighborhood Markets as a traffic driver,” Foran said. But both grocery home shopping and pick-up are areas where we can be better.”Īs a fifth objective, Walmart is leveraging adjacencies, such as gas, care clinics and financial services, to drive additional traffic to the stores. “As we continue to expand, that equation becomes even more fascinating,” he said. This year, the retailer has expanded its grocery home shopping test to new markets. With more than 4,500 stores, Foran said nearly 90 percent of Americans live within 10 miles of a Walmart. Walmart is reevaluating the layout and design of its Neighborhood Market and Supercenter stores.Ī fourth focus for Walmart is the integration of physical and digital retail. “Customer convenience and space has been compromised.” “Some of the stores we recently opened, in our opinion, are not quite as good as ones that we had opened in previous years,” Foran said. One change planned for Neighborhood Market stores is the addition of a bakery and deli. Third, Walmart executives are reevaluating the store layout and design in both Supercenter and Neighborhood Market formats, from ease of navigation, all the way down to the lighting and temperature of a store. “A small number times a big number is a big number.” “We estimate this markdown initiative alone is delivering a retail run rate saving of over $500 million annually,” Foran said. To address the issue of inventory shrinkage, an initiative already under way at Walmart involves lowering the price of a product near its expiration date, which also delivers value to the customer. We’ve had too many… displays, not allowing associates to merchandise their store the way they need to for their customer.” “And that is causing some undue shrinkage and some out-of-stocks. “We’ve got too much inventory in the back rooms, and our processes are not where we want them to be,” Foran said. Second, Walmart’s inventory quantity and flow requires attention. “Might be overnight stocking, markdown cadence, rotation of fresh food. “Our processes require some rework,” Foran said. “We want this year to be the year of improving our stores,” Foran said.įirst, the company has identified opportunities to strengthen its shop-keeping skills and ensure stores are clean, well-merchandised and operated by engaged managers and associates. The president and CEO of Walmart US shared his assessment of the business and outlined eight ways to improve it during an April 1 conference call with investors and analysts. What he discovered? There is a lot of work to be done. He stocked shelves in Sioux Falls, SD, worked the night shift in Wichita, Kan., and heard customer calls at the company’s call centers. In his first eight months leading Wal-Mart Stores’ US operations, Greg Foran learned everything he could about the business and how to improve it. Target's shares were up about 2.5% during midday trading Thursday.Greg Foran, president and chief executive officer of Wal-Mart U.S., discussed eight strategic initiatives for improving the company's stores during an April 1 investor call.īENTONVILLE, Ark. "We are maintaining our full-year financial guidance, based on the expected benefit from efficiency and cost-savings efforts and our team's continued focus on agility, flexibility and retail fundamentals in the face of continued challenges including inventory shrink," Cornell added.ĭespite those losses, the company reported a 0.5% growth in sales over the first three months of 2023 and a nearly 1% growth in traffic, which was attributed to new store locations. Target didn't mention any plans to close down stores in high-crime areas but did say it is focused on managing the financial impact theft has on the business. "We are making significant investments in strategies to prevent this from happening in our stores and protect our guests and our team." "While there are many potential sources of inventory shrink, theft and organized retail crime are increasingly important drivers of the issue," Target CEO Brian Cornell said in a statement. Last year Walmart saw shares drop as it cut its profitability outlook amid skyrocketing inflation. Walmart plans to close 'underperforming' store locations
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