For more than half a century, Walmart has priced itself on providing value to
customers by being a low-price leader. But the customer mindset is changing. Now ‘Value’ also
means convenience, ease of finding what you want, and ability to get what you want when want it.
Nationwide dollar-store chains often have lower prices than Walmart, so that point competitive
edge is fading. And thanks to Amazon.com and other online retailers, consumers can shop from
home whenever they like, compare prices and know immediately what is available.
Contrast this with the experience many Walmart shoppers previously had when they entered a
store- low inventory, disorganized aisles, unhelpful staff, and overall depressing atmosphere. The
company’s online presence was about the same. The site was difficult to navigate, and attempts to
search for products were frustrating at best and more often fruitless.
Named Walmart’s CEO in 2014, Doug McMillion set out to change this situation. ‘What people
think about company is important’, he noted. And at the moment, people weren’t thinking about
value and low prices when they thought the Walmart. McMillion enacted a number of changes.
First, the company had earned a reputation of treating its store employee poorly-low wages, few
benefits- while profits were in billion dollars, so Walmart announced it would increase its
minimum wages.
Second, the company asked for and paid more attention to employee feedback. Recurring issues
included the dress code, store music, and even store temperatures. So clothing rules were relaxed,
more variety in music was introduced and thermostats were adjusted. The company hopes
improving employee morale will translate into a better experience for customers, thereby
changing some of the negative images.
Walmart’s Web presence was another target for big changes. Amazon is the store’s biggest
competitors, and McMillion wanted to offer customers more item’s. Pickup options, and ways to
meet their needs and demands- for example, an online grocery ordering service. This means a new
way of thinking about marketing and inventory across the board.
McMillion was able to see how consumers have changed not only what they want but also the
way they want it- whether from the hands of happy employees or with the simple click of a
mouse. The question remains- Will his actions be enough to change the way customers see
Walmart?
A) What key factors do you think promoted Walmart to change?
B) What results from Walmart’s changes do you predict?
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