July 27, 2009

Why is walmart a good model for retail sales?

July 27th 2009 Posted to Shopping
retail sales
Rana asked:


im gonna be in a debate where i have to give reasons for why walmart is a good model for retail sales so i want hear what you think. (dont criticize walmart i will be debating those ppl)

Lucille
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Comments

  1. Akbar B
    July 28th, 2009 | 2:33 am

    Buy in bulk and sell cheap at retail. Expand on that theme. I am not going to write out your entire debate though I could. I dont get paid enough to do that. This is free advice.

    Your welcome.

  2. Drew
    July 29th, 2009 | 8:29 am

    First off Walmart know how and were to build in growing towns to provide goods.

    The real money is what is behind the doors with there distribution system, also there help in small manufactures to make more profit.

  3. Joseph H
    July 30th, 2009 | 2:39 pm

    Wal-Mart does several things unique. It utilizes the store-within-a-store concept and JIT or just in time inventory. Wal-Mart does not lose ground by holding on to old inventory. It also manages its labor costs very well.

  4. hawkddy1
    August 1st, 2009 | 10:28 pm

    In addition to the other responses, Wal-Mart further exhibits a competitive advantage by only stocking products with proven sales yields.

    In order to have your product considered to be sold at Wal-Mart, a company has to have documented proof of X% of unit sold. So they in essence are not dealing with slow mover products.

  5. larsor4
    August 4th, 2009 | 7:38 am

    One huge competitive advantage they had was their logistics. Owning their own warehouses and trucking fleet to establish better freight flow to the stores. Their replenishment system is also one of the best. 99 percent of all the merchandise in a Wal-mart store is ordered through the computer system based on what is scanned out through the registers on a daily basis.

    They also stayed away from markets that were saturated with competition while they were small. They avoided larger cities and the higher costs of doing business in large cities (taxes, property costs, utilities, etc.) by purchasing less expensive land in smaller communities.

    They also recruited some very good people in their developing phase. They incorporated the best ideas from those person’s former companies into what they were doing. Read Sam Walton’s “Made in America” for specific examples.

    If you want some other specific points, go to