Wednesday, March 23, 2016
We all know the story of Walmart, the success it achieved, and how the team did it. This article that appeared in Fortune magazine by Phil Wahba.
The story is about the decline of the value of Walmart stock and steps the company is taking. Walmart will close 152 stories. It could impact up to 16,000 associates.
Buried deep in the article is a remarkable section on Walmart Express. This is an excellent example of a company executive team monitoring the market and making adjustments and launching new initiatives. In this case the creation of Walmart Express failed. Most of the store closures are Walmart Expresses.
It is easy to suggest failed leadership. However, I give credit to the executive office for reading/analyzing the market and responding. It did not work, but that did not stop them from continuing to innovate.
In fact, Walmart will focus on other venues like Neighborhood Markets and supercenters. Also note the increased emphasis on integrating the internet with stores. By doing this you can pick up your list from a nearby Walmart store.
I am not smart enough to suggest that this will work. However, the Fortune 500 list is littered with companies that chose to ignore changing realities and customer preferences.
Link to the article: