3 Big Problems Facing Walmart Marketing

  • In 2022, Walmart reported global net revenue of $567.7 billion.
  • In Central America, a retail store has 860 establishments.
  • Mexico is the country with the largest presence after the United States.

Last week, news broke that Walmart was laying off hundreds of workers serving in corporate roles. At the same time, the accounting records for the last fiscal quarter were not good and the outlook for the rest of the year was not good either.

What happens at Walmart? The world’s largest employer is in trouble in 2022 nearly two years after the pandemic that has paid off very well.

That’s right, although cutting 200 jobs isn’t significant in a giant that employs more than two million people around the world, the truth is that it’s a warning sign that it’s struggling to fuel its growth.

As we explained last week at Merca20, Walmart is not alone with these problems, it is its big competitor, targetingIt also announced that it will resort to new strategies to overcome what appears to be a crisis.

what will he do? He will offer big discounts (more than usual) to get rid of the surplus stock Apparel, household items and electronic products.

Shops 7 eleven They also said they would cut more than 800 corporate jobs in the United States.

Walmart’s Big Three Problems in 2022

When the coronavirus pandemic started, higher prices were a good thing for Walmart.

Inflation has pushed consumers to discount retailers, and Walmart is one of them.

In 2021, Walmart realized it had the measure to absorb inflation well enough not to pass large price increases on to its customers.

But prices did not stop rising and Walmart’s “back” was no longer able to maintain prices. Sales values ​​increased as in the rest selling by pieces.

In addition, consumers spend more on gasoline, for example, and their budgets are lower.

Another Walmart problem is inventory: Walmart has too many products that it can’t sell fast enough.

Last quarter, the company founded by Sam Walton reported that Inventory has grown by more than 30 percent, and according to his employees, he no longer has room to accumulate a lot of excess inventory.

And the American media confirmed that the columns of the boxes prevented entry to the bathrooms in some stores.

An internal memo published by Business Insider shows that managers have reported this to store managers Do not use automated product ordering systems to help mitigate overstocking.

Like Target, Walmart has launched offers to purge its warehouses, but that’s driving down profits.

Another complication is HR, which came out last week.

Like its competitors, Walmart has launched a massive recruitment drive to cover staff shortages in the time of the coronavirus.

It happened until the end of 2021.

Now, with all the numbers going back, “The increase in the number of employees affects the results of the series,” the company said.

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