Loyalty Truth

Sam Walton’s vision of creating a retail giant that would stock shelves with every day low priced items and crush the competition is still standing tall, even in a tough economy. They have managed to wipe out nearly all the competition and are looking to take out what’s left via Project Impact.

Project Impacts is in the beginning stages and represents a massive store and strategy remodeling effort. The result will be cleaner, less cluttered stores and friendlier customer service intended to improve the shopping experience. None of this is good news for competitors Kmart and Toys R Us.

Why is Wal Mart so successful?

The answer is quite simple and the company’s Northeast Manager Lance De La Rosa said it best in a recent article written by Time Magazine – “We’ve listened to our customers, and they want an easier shopping experience,” says De La Rosa. “We’ve brightened up the stores and opened things up to make it more navigable.”

One of the most noticeable changes is that Project Impact stores reshape Action Alley, the aisles where promotional items were pulled off the shelves and prominently displayed for shoppers. Those stacks crowded both the aisles and interrupted sight lines. Now, the aisles are all clear, and you can see most sections of the store from any vantage point. For example, standing on the corner intersection of the auto-care and crafts areas, you can look straight ahead and see where shoes, pet care, groceries, the pharmacy and other areas are located.

Maybe more important, discount price tags are still at eye level, so the value message doesn’t get lost.

As I read the article, the statement that “We’ve listened to our customers” stuck me as the most important element of Walmart’s success.  They listen to what their customers want and strategize to deliver – period. How many times do we hear what our customers want, but don’t act in turn as if we really listened?

Big Box retail pays big money for market research, customer surveys, polls and focus groups, but doesn’t seem to put the information to use often enough.  I suggest that Big Retail spend less time “wordsmithing” this message into company mission statements and focus on executing against the promises made. As many businesses are closing their doors, Wal Mart chugs along, widening their lead in a race they seem determined to win.

Hats off to Wal Mart as they implement this new merchandising strategy and read back customer needs in store design and operations.