Wal-Mart Returns To "The Human Factor"

For 2 years, Wal-Mart, the world's #1 retailer, increased self-checkout systems in its 4,000 American stores.  Executives viewed this move as a step forward into modern technology and convenience.  To their horror, the company found that more and more shoppers bypassed the new system and clogged the staffed check-outs.  Apparently, "human"  cashiers were necessary to deal with more complicated and time-consuming transactions, such as shoppers who used coupons and price matching.  Queues grew, customers were angry and for 7 straight business quarters, in-store traffic fell as shoppers turned to Wal-Mart's competitors.

Now in an attempt to woo back shoppers, the company has come up with a "check-out promise"  marketing campaign.  Cash registers will be fully staffed from the day after Thanksgiving in October to the end of the Christmas peak season.  Duncan MacNaughton, Wal-Mart's chief merchandising officer said:  "We feel good about price and having the top gifts of the season, so the next priority is about getting customers in and out of the stores quickly.  Taking the possibility of waiting in long lines off the table will attract more people into stores."

Another complaint about the retail giant is that too many items are out of stock:  shelves are often empty of product - another irritant costing the company money and customer loyalty.  To address this problem, Wal-Mart has beefed up its delivery systems, expanded overnight shelf-stocking and hired more "quantity control"  employees.

Both of these initiatives are further evidence how Wal-Mart retains its #1 position in the highly competitive retail market.  It never lost sight of the old adage - "Two eyes on the consumer, one eye on competition".  As Doug McMillan, Chief Executive Officer, recently told investors:  "We must run stronger stores everywhere we operate, with better merchandising, in stock levels and quality service".

If Sam Walton were alive today, he would be proud to see that his creation was living up to his 1962 motto:  "Focus on something the customer wants, and then deliver it."