Ranting About Wal-Mart
Don’t get me wrong. I love Wal-Mart. They are convenient for me, have a lot of products that I need and good prices. But it bugs me to hear people, both inside and outside of retail, talk about how well Wal-Mart manages its inventory. I think their inventory control is horrible.
I am a bulk shopper. I buy 6 cans of shaving cream, 12 bars of soaps, 6 tubes of toothpaste, 14 cans of dog food and other necessary items all at once so that I don’t have to keep returning to stand in the long lines of Wal-Mart (which is another rant). I remember when the first Wal-Mart opened a couple of miles away and they had checkout lines will signs over them saying “This Lane Always Open 8-8 Monday-Friday” or some other time frame. But many of those times, the lanes were closed. I asked once and was told that they only open the lanes when it’s busy. In other words, 8-8 Monday-Friday unless they don’t want to. But they solved that by taking down the signs.
But back to the inventory rant. While my company specializes in inventory budgeting and open-to-buy, there are many stores (like Wal-Mart) where replenishment is a huge part of their inventory management. Yet I have observed that this is exactly where Wal-Mart does a poor job.
Many times (and I do mean many), I find they have run out of stock in these particular products and have to wait many days for it to reappear on the shelves. That is my rant. If they have such sophisticated and modern inventory management, why do they run out of some many products?
It’s not just the toiletries where this occurs, but also in items such as charcoal, charcoal starter, sodas, bags of M&M peanut butter (the greatest new candy product on the market), and many household cleaning products.
The lesson for all of us in retail is that while it is important to properly budget for inventory investment, it is equally important to have the proper selection at the right time to fulfill customer needs. Remember that when I cannot find what I want, I go somewhere else.
While I’m sure that Wal-Mart does not care what Retail Business 101, Inc. or My Golf Retail Guru think about their inventory management, I hope that you care about your own situation to evaluate. Whatever products you carry, make sure that you have adequate selection to prevent your customers from going somewhere else.
Alan Fisher is the leading expert on inventory management in the golf industry. He has conducted numerous seminars across the US and Europe for the golf industry and has authored numerous articles on maximizing retail inventory. If you would like to know more about how you can make your retail a profitable part of your business, please contact him at any of the following:
alan.fisher@mygolfretailguru.com
866.32 RB101 (866.327.2101) toll-free (US)
+1 760.724.0385 direct
+1 619.723.4653 mobile
+1 760.208.4653 US Skype
+44 20 3239 9619 UK Skype
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