Thursday, July 31, 2014
Goldman Sachs is predicting a slow decline for Walmart and Target as customers look elsewhere for convenience. The two companies are fighting erosion but haven't been successful in stemming their declines so far. They are facing one of the toughest business and PR/marketing conundrums -- how to win back customers. There is no easy answer once a shopper has changed habits. There are multiple considerations including price, quality of goods and service. Falling down in any of these three categories is a death sentence. In other words, convenience is only the beginning of the sales equation. A Big Box store may have everything one wants but one must able to navigate it to find an item -- a constant problem, especially when store personnel don't know themselves. It is easier to go to a place where there are fewer choices that are easier to find in the aisles. This is a secret that some food retailers have discovered -- i.e., Trader Joe's. Target and Walmart are filled with experienced merchants so there is a good chance that they might turn around, but the longer it takes, the less likely that will happen.