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Wal-Mart Store Analysis
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Introduction
Wal-Mart store is one the largest stores and the leading company in home merchandize. It has several stores worldwide, and therefore, it has one of the best managerial strategies. Wal-Mart sells several varieties of products ranges from electronics, home products, groceries, clothing and shoes. All these products performed different and the performance of each product must be measured so that the company can be able to improve the general performance. As a store manager, it would be important to use sales report, and stock taking sheet or report to determine the performance of each product in stores. The sales report is a general report which covers every items going on at the store. According to Channe (2017), the sales report shows the cost of goods sold, the serial number and the name of product and quantity sold. These details would be enough to know how each product in the stores performs. The inventory report will also provide an overview on how each product performs in the market. Therefore, sales and inventory reports would be the best tools for analysis of the stock performance for the best strategy to address the underperforming products in the stores.
Analyze performance of product WTD vs. PLAN, Month, and MTD vs. PLAN
Based on the analysis of WTD from the beginning of the week, it is obtained that grocery registered purchased compared to the rest of the products. Analysis of the sales report shows a large quantity of grocery purchase during the first week of the month and in the mid of the month. The estimation of which product performance better is determine based on the quantity of the product not the amount each product was sold at the end of the week. The analysis was first done per WTD before conduct for MTD to determine the general performance of the all products in the entire month. In order to get a better estimation a column projection was used to analyze each product sold with the specific period and the grocery was obtained to be the best performing product among the other products sold by Wal-Mart. Based on the analysis of each sales report on the column section of quantity of products sold, it is obtained that grocery are purchased in high quantity compared to other products, The decision based on the calculations of the products quantity not amount of each product sold. Though in amount other products such electronic leads in total amount of sales and this could be as a result of the sale value or price of each product. The electronics have high prices compared to grocery but the focus of the analysis was based on the quantity of sales. However, the report also indicates that quantity of shoes, electronics and jewelry sales from the stores is less compared to other products like grocery.
External factor affecting the store performance
External factors which affect the performance of the store are stiff competition from the industry. There are several other stores offering similar services as Wal-Mart and therefore, this impact negatively on the sales of Wal-Mart. The online stores are also a major factor which influences the sales of product in the market CITATION DDr14 \l 1033 (Dragnić, 2014). The companies like Amazon and others have come up with platform where most electronics are sold and this affect the performance of electronic. The best strategy would be to develop a well managed online platform for the sales of electronics. Wal-Mart online platform should be made to be engaging and this and this will attract more shoppers on its platform and stores across the country. The economy is also a factor which affects the performance of the company. It the inflation rate and the increased rate of unemployment rate is factor, which directly affect the purchasing power of the customers. Therefore, the decline in purchase of electronics could be as a result of poor performance of the economy in the last six months. The company can address the problem by promoting the products and ensuring that the prices are very competitive with other prices offered by other companies in the market.
Recommendation
It is recommended for the Store change the display of shoes and electronic. Wal-Mart stores displays shoes and electronic almost at the back of the store. This makes the products not easily visible to customers CITATION Wal171 \l 1033 (Wal-Mart report, 2017). The display should be changed so that the products could be more visible and accessible to customers. It is also recommended for Wal-Mart to conduct intensive promotion of products, which are underperforming. This would include having sales perform with sample of products in front of store to talk to customers about the product and urge them to purchase electronics and other underperforming products from the store. It would be recommended to give discounts on products which are not performing well. The discount would be part of promotion to urge customer to purchase specific product. It would also be important to take advantage of high performing products and this could be achieved by placing underperforming products close to performing products inside the store.
Conclusion
The performance of products at Wal-Mart stores are different, some products are high performance due to high demand by customers. The performance of products was analyzed using sales report and inventory report. It is established that grocery performance better than other products. It is also established that intensive marketing would be the best strategy to improve the performance of underperforming products in the stores.
References
BIBLIOGRAPHY Channe, R. (2017). Implementation of WTD, MTD, YTD Period Reporting in HANA using Calculated
Columns in Projection. International Journal of Business Studies , 2-15.
Dragnić, D. ( 2014). impact of internal and external factors on the performance of stores . International
Journal of business and customer management , 2-15.
Wal-Mart report. (2017). Financial Perfomance of Wal-mart .
https://s2.q4cdn.com/056532643/files/doc_financials/2019/annual/Walmart-2019-AR-Final.pdf , 2-15.
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