Wal-Mart Stores, Inc (NYSE:WMT) (Current: $74.83, Up by 0.07%) has been cost-cutting and one of the measures it has adopted has been to cut-down its workforce ever since recession hit the country. On the other hand it upped the number of stores it owned. There has been a 13 percent rise in the number of Walmart stores over the last 5 years and 455 new stores were added. Its stockrooms are piling up but there is no staff to ensure that the shelves are stocked up too. There are snaking checkout lines the general running is disorganized and there are fewer people to help customers with queries and also to assist with sales.
Retail competition is high
All of this has seen a large number of Walmart customers gravitating towards Kohl’s Corporation (NYSE:KSS) (Current: $46.13, Down by 1.01%), Safeway Inc (NYSE:SWY) (Steady at $26.35), Target Corporation (NYSE:TGT) (Current: $68.45, Down by 0.87%) and Walgreen Company (NYSE:WAG) (Current: $47.68, Up by 0.93%) who are retailers with loyal customers of their own. The American Customer Satisfaction Index is a standard of judging a stores ability to keep its customers happy and the retailer has been taking last spot or tying for last spot for the past 6 consecutive years.
Market conditions an added strain
Overall, there has been a decrease in consumer spending and consumers are shopping online at sores such as Amazon.com, Inc (NASDAQ:AMZN) (Current: $266.49, Up by 0.45%), rather than at brick and mortar stores. All of this has added to Wal-Mart Stores, Inc (NYSE:WMT)’s dwindling customer-base. The Walmart spokesperson, Brooke Buchanan said that all these reports of low stock levels have no statistical base and have been blown out of proportion by a certain segment of people. She went on to say that Walmart attracts ¾ th of American consumers as they are sure that they will be able to find the products they are looking for and that too at very competitive rates.