March 6, 2012 Leave a comment
Wal-Mart recently tried to upgrade their stores making them more presentable, carry better clothing brands, and carry fewer items in bulk sizes.
After Wal-Mart upgraded their stores, they actually had declining sales; they lost their low price image with customers because their stores looked nicer.
I love that, Wal-Mart made their stores better and it actually hurt their business.
Most consumers are hurting these days and want to pay the lowest price possible. If you are in a store and you are not scared or embarrassed to be there, you are probably not paying the lowest price possible. That is what Wal-Mart lost. Shopping at Wal-Mart used to be “walking in on someone in the bathroom” embarrassing, but now with the new remodeled stores, it is more “having spinach stuck in your teeth” embarrassing.
Currently “Dollar Store” sales are doing great and Dollar General is opening over 600 stores in 2012. That is because their stores are still embarrassing and scary to be in which gives them a great low price image.
If Wal-Mart wants to reclaim their low price image, they should just try sweeping their store floors less, start carrying off brand clothing, and start downgrading stores. Instead of opening a newly constructed store, they should just move into an old abandoned building and buy florescent lights that flicker on and off, to trick customers into thinking they have entered the seventh circle of hell.