More Layoffs at Walmart

Predicting the demise of Sears & Kmart since 2017!
arizonaguy
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More Layoffs at Walmart

Post by arizonaguy »

Looks like 1000 HQ jobs are on the line: http://www.nwahomepage.com/news/industr ... /177665623

Between the 10,000 Sam's Club job cuts, cuts to different positions at the store level, and thousands of HQ jobs last year it almost seems that the wheels are falling off of Walmart.

A lot of this seems reminiscent of Kmart and Sears before they really started their steady decline downwards.
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Re: More Layoffs at Walmart

Post by storewanderer »

This sort of thing seems to be an annual ritual for a lot of big retailers. Look at Macy's. They restructure every year and lay off thousands and close a good block of stores.

I would agree it definitely does not come off as a sign of strength or stability...

And these retailers wonder why their employee turnover is so high... (or do they?)
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Re: More Layoffs at Walmart

Post by wnetmacman »

arizonaguy wrote: January 19th, 2018, 8:35 pm Looks like 1000 HQ jobs are on the line: http://www.nwahomepage.com/news/industr ... /177665623

Between the 10,000 Sam's Club job cuts, cuts to different positions at the store level, and thousands of HQ jobs last year it almost seems that the wheels are falling off of Walmart.

A lot of this seems reminiscent of Kmart and Sears before they really started their steady decline downwards.
I wouldn't call it that the wheels are falling off, nor is the company in danger. Unlike many of the other retailers who have had to close stores or cut back, Walmart isn't losing money.

Indeed, what Walmart is doing is something Walmart has always done, and that's to fix a problem BEFORE it starts losing money for the company. I've said this before:

Heard of dot discount drugs? Been in one in 30 years?
Heard of Helen's Arts & Crafts? Been in one in 30 years?
Heard of Bud's Warehouse Outlet? Been in one in 20 years?
Remember Walmart Express? Been in one in 2 years?

Walmart swiftly fixes problems. They always have. They don't let mistakes linger, and they learn from them. Sam's as a whole is profitable. Cutting HQ jobs is normal, as they automate more of the company and remove the fat. Keep in mind; the lower overhead at the top, the lower prices can be at the stores.
storewanderer wrote: January 19th, 2018, 11:18 pm This sort of thing seems to be an annual ritual for a lot of big retailers. Look at Macy's. They restructure every year and lay off thousands and close a good block of stores.

I would agree it definitely does not come off as a sign of strength or stability...

And these retailers wonder why their employee turnover is so high... (or do they?)
You are correct; many retailers do this yearly. I do not believe it comes off as a sign of weakness or instability. What it does come off as to me is that when Walmart closes stores, folks get scared, because until the last 15 or so years, it just didn't happen. (Well, it happened twice, in Kinder, LA and Hearne, TX.) When the world's largest company cuts jobs, it's serious. The economy isn't what everyone thinks. Many individuals and businesses alike are hurting.

I will tell you; they simply do not care that turnover is high. It's seen as a sign of doing business. For every 1 person that comes and goes, they usually have 4-5 applications for that spot.

Panic will kill faster than a measured response. Keep in mind; A&P lost money for 41 years (with a few profitable times, but still sinking) before completely fading into oblivion. Sears has been dying for 15 years. Walmart isn't going anywhere soon. In any business, sometimes you have to sacrifice a finger to keep the body healthy. That's the rough equivalent of what Walmart has done. I can tell you; 1000 jobs in Bentonville simply cuts out available positions; there are plenty of jobs there. 63 Sam's Clubs was 10% of the total, but it's only 1.2-1.4% of Walmart's US presence. It isn't the impact of, say 103 stores closing at SHC.
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Re: More Layoffs at Walmart

Post by mjhale »

Walmart swiftly fixes problems. They always have. They don't let mistakes linger, and they learn from them. Sam's as a whole is profitable. Cutting HQ jobs is normal, as they automate more of the company and remove the fat. Keep in mind; the lower overhead at the top, the lower prices can be at the stores.
Better that Walmart attack whatever issue is going on now than let it fester and linger until the cut starts uncontrollably gushing blood. I think that is the big difference here. The other chains folks refer to when making the comparison to Walmart's layoffs - I'm thinking A&P, KMart, Sears, various other departed discount stores - had systemic, major issues that were never addressed and were left to grow to the point where they became unmanageable. That leads to "turnaround efforts", mass layoffs, etc. If there is any chain right now that can compete against Amazon it is Walmart. One of the reasons that was given for the Sam's Club closures was to convert some of the stores into eCommerce distribution centers. Walmart already has the stores, the supplier relationships and a pretty damn good distribution network. Adding to that can only benefit them in reduced delivery times and capacity in the last miles to the customer's home. Walmart will need to continue to up their service game. I have seen improvements in the stores near me that I shop. However I think they have some time to go until they fully shake the bottom of the barrel, "People of Walmart" image.
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Re: More Layoffs at Walmart

Post by pseudo3d »

mjhale wrote: January 20th, 2018, 7:41 am However I think they have some time to go until they fully shake the bottom of the barrel, "People of Walmart" image.
As long as they advertise as the "low price leader" and hiring the people they do, they never will. The Supercenter perishable programs aren't very good. The delis rarely have cold cut programs, and when they do, they certainly aren't things like Dietz & Watson or Boar's Head. Their food programs are largely just fried foods (chicken with various sauces and a few other comes-in-frozen-and-put-in-the-fryer foods), sort of like Jack in the Box except a more limited menu and food sits out for a long time. The produce has an unfortunate tendency to rot within a few days. The bakery is largely just frozen stuff with nothing made from scratch (the bread loaves of their "Marketside" brand are made in Canada). Sushi is extraordinarily rare. Their grocery program really sacrifices a lot of SKUs for big displays of their own brand, and often runs out of stock. The milk (at least in my market) is not competitively priced and goes bad faster than Kroger and H-E-B do. Also some time around Project Impact, they cut a lot of the "floor" employees, so there will be whole departments devoid of employees, which leaves more opportunities for messy stores (count the number of "misfiled" items thrown in random areas of the store).

While there's a ton of room for improvement, they'll never be able to get top-notch perishable programs to work because more affluent customers will continue to shop at "real" supermarkets.
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Re: More Layoffs at Walmart

Post by buckguy »

The only problem they're trying to solve, is how to keep increasing the dividends to the Waltons and institutional investors despite the stagnation of their core business. I'm surprised they didn't start selling of Sam's ages ago. Sam's has done ok this year but not ok for a long time. They still have those money losing stores in Japan and one never hears how their logistics venture is doing in India.
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Re: More Layoffs at Walmart

Post by mbz321 »

pseudo3d wrote: January 20th, 2018, 9:48 am

As long as they advertise as the "low price leader" and hiring the people they do, they never will. The Supercenter perishable programs aren't very good. The delis rarely have cold cut programs, and when they do, they certainly aren't things like Dietz & Watson or Boar's Head. Their food programs are largely just fried foods (chicken with various sauces and a few other comes-in-frozen-and-put-in-the-fryer foods), sort of like Jack in the Box except a more limited menu and food sits out for a long time. The produce has an unfortunate tendency to rot within a few days. The bakery is largely just frozen stuff with nothing made from scratch

While there's a ton of room for improvement, they'll never be able to get top-notch perishable programs to work because more affluent customers will continue to shop at "real" supermarkets.

This. And it least in my region, Walmart is not even that price competitive on groceries. Ok, they are way cheaper than Acme, but their everyday prices are about the same, or even higher than Giant (PA) and strangely enough, Wegmans. And they just don't have the loss leaders like ShopRite stores have on a weekly basis that really draw in business. I've tried shopping for groceries at Walmart and I just can't....poorly stocked shelves all the time, no matter the location, and like you said, food that looks far from fresh.
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Re: More Layoffs at Walmart

Post by wnetmacman »

pseudo3d wrote: January 20th, 2018, 9:48 am The Supercenter perishable programs aren't very good. The delis rarely have cold cut programs, and when they do, they certainly aren't things like Dietz & Watson or Boar's Head. Their food programs are largely just fried foods (chicken with various sauces and a few other comes-in-frozen-and-put-in-the-fryer foods), sort of like Jack in the Box except a more limited menu and food sits out for a long time. The produce has an unfortunate tendency to rot within a few days. The bakery is largely just frozen stuff with nothing made from scratch (the bread loaves of their "Marketside" brand are made in Canada). Sushi is extraordinarily rare. Their grocery program really sacrifices a lot of SKUs for big displays of their own brand, and often runs out of stock. The milk (at least in my market) is not competitively priced and goes bad faster than Kroger and H-E-B do. Also some time around Project Impact, they cut a lot of the "floor" employees, so there will be whole departments devoid of employees, which leaves more opportunities for messy stores (count the number of "misfiled" items thrown in random areas of the store).
Walmart isn't aiming at the top notch shopper, nor are they aiming at being a high-end grocer. All of these things you mention are aimed at the higher end grocer. Walmart is trying to get the no-frills shopper. Yes, they have bakery and deli offerings, and they're often cheaper than other folks, but they don't try to be Kroger or Albertsafeway. Most of the delis have limited cold cuts. No, they aren't Boar's Head or Dietz & Watson. Those are expensive, high end brands. Yes, the hot food offerings are limited. They are trying to get the folks who just happen to be shopping on the other side of the store to come over and spend a little less on some things to not have to shop 3 stores.

mbz321 wrote: January 23rd, 2018, 8:57 am This. And it least in my region, Walmart is not even that price competitive on groceries. Ok, they are way cheaper than Acme, but their everyday prices are about the same, or even higher than Giant (PA) and strangely enough, Wegmans. And they just don't have the loss leaders like ShopRite stores have on a weekly basis that really draw in business. I've tried shopping for groceries at Walmart and I just can't....poorly stocked shelves all the time, no matter the location, and like you said, food that looks far from fresh.


If a competitor has an advertised price, you can still use the Savings Catcher to get $$$ back, which gets you back into the store. They're banking on you beating the competitor's sale prices. I can do that in one store instead of 3. No, Walmart doesn't do loss leaders, which may be a mistake. Every store they compete with, they compete on the hopes that you'll use Savings Catcher, which requires you to come back to the store.
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Re: More Layoffs at Walmart

Post by klkla »

wnetmacman wrote: January 23rd, 2018, 2:28 pm If a competitor has an advertised price, you can still use the Savings Catcher to get $$$ back, which gets you back into the store. They're banking on you beating the competitor's sale prices. I can do that in one store instead of 3. No, Walmart doesn't do loss leaders, which may be a mistake. Every store they compete with, they compete on the hopes that you'll use Savings Catcher, which requires you to come back to the store.
Sam Walton is rolling over in his grave. The reason WalMart became such a big success was because it was easy to buy things at the lowest price. No games. No gimmicks. It sounds like things have really changed there.
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Re: More Layoffs at Walmart

Post by mbz321 »

wnetmacman wrote: January 23rd, 2018, 2:28 pm

If a competitor has an advertised price, you can still use the Savings Catcher to get $$$ back, which gets you back into the store. They're banking on you beating the competitor's sale prices. I can do that in one store instead of 3. No, Walmart doesn't do loss leaders, which may be a mistake. Every store they compete with, they compete on the hopes that you'll use Savings Catcher, which requires you to come back to the store.
I'm not even talking about advertised items...I'm taking about regular everyday prices. Walmart in reality really isn't that much lower, if they are lower at all. Now in certain markets (Florida as an example), they are lower, because the only real large scale competition they have is Publix and to a much lesser extent, Winn Dixie. Savings Catcher is about as gimmicky has having loss leaders. Walmart also does horribly in my area because every grocery chain except for one that I can think of doubles manufacturers coupons to a certain value, and Walmart won't do it.
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