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Wal-Mart Sales Decline Essay

In an article on April, 2010, Mary Lloyd wrote that Michael T. Duke who is Wal-Mart’s COE received a compensation which was less than the previous year due to the fact that his stocks had reduced. Wal-Mart has also had to pay $27. 6 billion when it was accused of disposing poisonous substances at stores in California. The case has been under investigation for the previous five years from environmentalists and prosecutors; this is according to an article in the business section of the wall street journal (wall street journal, 2010).

Wal-Mart’s period of influence over the United States as the leading retail store seems to be coming to an end, this was according to an article in msn. com, and the prediction was due to high competition that it was receiving from business rivals who were providing Americans with wider variety of products, better services and better quality products. The expansion internationally is also not successful as they had to close their stores in South Korea and Germany when they were not able to cater to the local needs in the markets adequately and make substantial profit.

There has been a struggle in China as majority of people are not attracted

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to products which are cheap in terms of cost, cheap products are thought to be of a lower quality. The demand for wider selection of products and better quality products from customers has greatly increased (msn. com, 2007). Hudson in an article on Wall Street Journal in 2007 said that according to the top financial officer in Wal-Mart, the earnings per share would see a reduction. Even with the sales of $84. 5 at the store in Bentonville, Ark, it had reduced by 3.5%; the decline in the month’s period was seen as the worst in twenty years.

They gave the reason for the decline as that some customers had decided to visit other retailers as some Wal-Mart stores had been doing renovations, fuel prices had also risen thereby putting a strain on the customer’s finances (Hudson,2007). Wal-Mart had earlier on tried to expand their target market to include even the rich people, but that had not worked and they ended up having to discount some women’s clothes which had not sold.

Wal-Mart therefore had to go back to its original market which was for people who were looking for low priced products. Some customers complained of not finding all the products that they intended to buy from the store. Others complained of the congestion in the stores and of the long queue at the counters, the impatient customers preferred to go and shop elsewhere to avoid the inconvenience of wasted time (Hudson, 2007).


History Timeline http://walmartstores. com/AboutUs/7603. aspx Hudson, K. (2007). Wal-Mart Sales Decline Is Worst in 28 Years http://online. wsj. com/article/SB117880185064598518. html

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