Walmart has announced a new strategy. which is expected to increase its profits by $5 billion. The retail giant has employed two firms, - Ascota Inc. in the US and Retail Insight in the UK - to carry out research on what products are usually missing on store shelves.
The work to improve stock levels is expected to boost sales dramatically, according to analysts. “One of their biggest concerns is out-of-stock items,” said Natalie Berg, analyst with UK-based research firm Planet Retail. “If there are items out of stock, there is a real risk that the customer will take their entire basket elsewhere.”
“Improving product availability and lowering prices has helped boost store traffic, contributing to the past two straight quarters of increases in sales at U.S. stores open at least a year,” said David Tovar, spokesperson for Walmart. “If we can get better on-shelf availability, he believes it will lead to more sales. Product has to be on the shelf for customers to buy it.” (13 Mar)
© 2012 ESM: European Supermarket Magazine
