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Monday, November 9, 2009

Walmart shoppers noticing a difference on the grocery shelves

Consumers aren’t finding the variety of products they used to on Walmart shelves, as the retailer offers fewer flavors, sizes and forms of many grocery products.

Columbus, Ohio-based Retail Forward in its October WalMart World reports some indication of consumers shopping less at Walmart because they can’t find what they want. About 24 percent of shoppers reported going to Walmart less this year compared with a year ago, while 14 percent of shoppers reported going to Walmart more often, according to the WalMart World report by Jennifer Halterman, Retail Forward senior consultant. Those numbers are from Retail Forward’s Shopper-Scape surveys from December 2007 to August 2009. The Shopper Scrape survey asks 4,000 people each month about their shopping habits.

“WalMart’s SKU (stock keeping unit) rationalization and reduction efforts as part of Win, Play, Show may actually be a point of contention with shoppers; some report reduced inventory as a reason for shopping Walmart Supercenter less often,” the Wal-Mart World report stated. Shoppers filled in explanations for some reasons they go to Walmart less, including “too crowded, reduced inventory, no longer carries items I previously purchased” and “they’ve cut out a lot of items they used to carry,” according to Retail Forward’s WalMart World.

WalMart’s win, play, show strategy means it wants to be well-stocked in major brands and categories that sell well; and will play in other brands that shoppers want, but won’t offer as great a selection. WalMart will devote even less shelf space to the “show” products, items it carries because some shoppers buy those items but they aren’t the biggest sellers or perhaps aren’t national or dominate brands.

Consumers get cranky if they’re used to buying a certain item which gets discontinued. Sometimes, they will try another brand in its place, but if it’s important enough some will shop elsewhere to get what they want.

Time will tell if Win-Play-Show increases WalMart sales and profits.

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