Wal-Mart Struggling as Sales Go Rock Bottom
Wal-Mart is really struggling in offering something fantabulous and exotic to the shoppers. This is all because of the constraints that have been initiated by the rise in the taxes together with other factors, all of which have forced the customers to rethink on their spending habits. That’s not all, as things are getting pretty worse for the company in terms of stocking the shelves and in hiring more and more employees. U.S. Chief executive officer Bill Simon made a statement in this regard that they are running out of products and the sales are also not doing so well. He has also added that a new Executive Vice President has also been appointed to offer a cure to the problem of low sales and restocking.
Surely, Wal-Mart used to be a top paragon of the logistics, but lately it has been struggling with the sales and profits. Since the year 2011, the company is looking to level out the odds and regain the mark on which it once stood. Moreover, the company has also hired a number of consultants and specialists to walk down the various aisles in order to locate the products and items that are available in the markets and how well they are doing in terms of profits. The problem of restocking had risen when the company planned to add more and more merchandise to the shelves.
The core reason for which the company has lagged behind in terms of stocking its shelves is because of the rise in the taxes and the fall in the sales. Simon also said that the store sales for the past 13 weeks will be ending soon with little change in the profits earned. In the 4th quarter although the sales did rise by 1 % still it’s not enough to meet the needs of the company. In response to the statements made by Simon, a spokesperson of Wal-Mart said that there are a number of self-conflicting statements and interpretations that have been made on the comments of Simon. He also added that when Simon said that the things are getting worse for Wal-Mart, he was merely referring to the modular changes and towards the replenishing of the entire merchandise in order to keep up with the needs and demands of the customers keeping in view the present increases in the taxes. He continued that they are quite pleased with the current position of their in-stock, all of which have exceeded the historical levels. But here he considered it better not to disclose the previous historical levels.