Hubby sent me several articles last week that there may be trouble in WalMart’s Paradise. One article entitled Customers Flee Wal-Mart Empty Shelves for Target, Costco. The story states that WalMart has opened more stores in the last year (455 in total), but has fewer employees working now than it did before those stores opened (20,000 less). That means stock doesn’t hit the floor, lines are long, and the stores are disorganized. WalMart again took last place in the American Customer Satisfaction Index, the sixth year in a row it did so.
The second article is hilarious: Wal-Mart may get customers to deliver packages to online buyers. Instead of the WalMart to go model where UPS or FedEx delivers, WalMart thinks your friendly neighborhood meth-dealer should be able to deliver your Sudafed. I am sure it would make it intact to your house.
Adding five full-time employees to Wal-Mart’s (WMT) U.S. supercenters and discount stores would add about a half-percentage point to selling, general and administrative expenses, according to an analysis by Poonam Goyal, a Bloomberg Industries senior analyst based in Skillman, New Jersey. Assuming the workers earned the federal minimum wage and industry standards for health benefits, the added costs would amount to about $448 million a year, she said. In the year ended Jan. 31, Wal-Mart generated $17 billion in profit on revenue of $469.2 billion.
To me, this sounds like penny-wise and pound-foolish. But hey, it is WalMart, what do you expect?
Do you shop at WalMart? Have you noticed a lack of stock on the floor? Longer lines? Less help in the aisles? At what point will you cease to shop at WalMart?