The Good, the Bad & the Ugly: Walmart | Warren Shoulberg

Walmart private label sheets

A merchandising miss: Mainstay bedding packaged in the same put-up as the step-up Better Homes & Garden merchandise.

Walmart continues to be the biggest retailer on the planet…despite itself. We get supply chain, labor shortages and the relentless pace of its shopping turnover but why can’t the stores just look better and be more pleasant places to shop?

We just visited a store in the Atlanta market and came away needing a shower.

The Good Walmart low prices wash cloth packs

  • Yes, there were good things here. Nobody can blow out promotional specials better – as evidenced by 18-packs of cotton washcloths for $6.44 and over-sized “Teddy” plush pillows for $6.88. The freight alone has to cost more.
  • And in the ever-confusing world of trying to figure out what towels to buy, Walmart tries to help the shopper with shelf facings that explain the attributes of four different levels of products. This is useful info for consumers who don’t understand why one towel costs $1.99 and a seemingly very similar one is five times the price.

The Bad Gap Home and Walmart bedding

  • Much was made of Walmart’s tie-in with Gap for apparel and home but the few pieces in this store were stuck in the middle of a 16-foot gondola as if they were leftovers. If the store doesn’t treat them as special why should the shopper?
  • We continue to be absolutely puzzled by the way most retailers – not just Walmart – fail to differentiate opening price point promotional products from premium items. Here, Mainstay bedding was in exactly the same packaging and put-up as the step-up Better Homes & Garden merchandise. The shopper is going to pick price every time when faced with this kind of non-choice.

The Ugly Walmart empty shelves

  • OK, Walmart says it is overloaded with too much stuff, but a walk through this one store on one day showed plenty of stock outages and empty shelves, mixed in with misplaced merchandise scattered about. In other words, a typical Walmart anywhere… outside of a 25-mile radius of Bentonville. Imagine how much more business Walmart would do if the stores just looked better.

More:

3 reasons why Walmart now expects difficult terrain for general merchandise

Walmart, The Gap deepen their exclusive partnership in soft home

Warren Shoulberg has reported on the gift and home industry for most of his career. He is often quoted in national media, such as The New York Times and CNN, and contributes to PBM publications, Forbes.com and The Robin Report.