Sam's Club closures

in business •  7 years ago 

Sam's club never really could offer a 'great value' proposition. They'd have done MUCH better if they steered clear of over-priced name brands and pressed the quality generic alternatives. Here's a prognostication for you: Unless Walmart can go private, they'll be like Sears & Roebuck within a decade.

The stock market requires perpetual increase where a private company gets to take that responsible breath once in a while in order to maintain the bricks and mortar. So, with the real-estate nationwide saturated with stores, Walmart has to expand in store sales. But they have fallen into the trap of calendar marketing agreements with many vendors and they also sell store space. All of that back door dealing skews the space-to-sales index. The great retailers (Aldi is an example) earn their cash at the register and move the space allocation to honestly reflect the consumer's preference with much greater frequency. Location managers have greater discretion as well.

With integrity, guidelines and performance measurements, a bit more anarchy and a bit less centralization can be terrific in retail.Up.jpg

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

I think Walmart has a big future play up its sleeve. It's kind of like Amazon and books - now that they've got the infrastructure in place, there's a lot they can do with it.

When Sam Walton was still kickin', I sold them loads of Pepsi. They were smart about deal making at the store level from market to market. When Bentonville started taking graft for selling products, they lost a lot of leverage. The early Walmart model was superior to say, the Safeway or Albertson's model. Now it is identical. They are also eliminating a lot of value products in order to increase same store sales. That will bite them. They suffer from arrogance nowadays. Amazons and Aldis of this world will chip away at Walmart now from all directions. It is nature. It is gravity. Only the humble can change.

Congratulations @jimspellman! You received a personal award!

1 Year on Steemit

Click here to view your Board

Support SteemitBoard's project! Vote for its witness and get one more award!

Congratulations @jimspellman! You received a personal award!

Happy Birthday! - You are on the Steem blockchain for 2 years!

You can view your badges on your Steem Board and compare to others on the Steem Ranking

Vote for @Steemitboard as a witness to get one more award and increased upvotes!