Although Walmart’s global e-commerce operations reported 22% gains in sales for fiscal year 2015, U.S. same-store sales at Walmart stores were comparatively lackluster at +0.5%. Overarching retail trends like declining store traffic, the “death” of malls, and rise of online shopping (and, of course, Amazon.com) have been discussed at length by analysts and industry pundits with Walmart executives announcing plans to combat this in-store shopping fatigue by improving customer experience, keeping prices low, and expanding product assortment. While this three pronged approach to engaging shoppers and promoting loyalty to Walmart seems well-meaning, it’s also very broad and, quite frankly, could be used to define the strategies of any one of Walmart’s competitors, including Amazon.
Using the years of syndicated insights Prosper has collected on Walmart, I took a deeper look at one of the big discounter’s core customer groups – its grocery shoppers – in order to gain a better understanding of what ails this retailer. This analysis revealed that potential revenues are leaking like a sieve out of Walmart’s apparel departments, with Kohl’s lapping up a hefty proportion of Walmart’s so-called “lost opportunity.” Continue reading