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Wal-Mart’s customers expect a very broad array of goods, because they’re a department store, not a specialty retailer; lots of people rely on Wal-Mart for their

Wal-Mart’s customers expect a very broad array of goods, because they’re a department store, not a specialty retailer; lots of people rely on Wal-Mart for their regular weekly shopping. The retailer has tried to cut the number of SKUs it carries, but ended up having to put them back, because it cost them in complaints, and sales. That means more labor, and lower profits per square foot. It also means that when you ask a clerk where something is, he’s likely to have no idea, because no person could master 108,000 SKUs. Having done a few years time in retail, I find this part a bit telling. I'm curious if the author has ever worked in a department store? Many department stores assign various employees to ....departments in the store. The actual SKU count you need to mentally juggle in your head is a fraction of what the entire store carries. Increasing the number of employees in a department and paying them better should give you a better knowledge on the floor of where something is if only because customers can find a department member. In my Wal-Mart it seems like you'd be lucky to find a department member in any particular department, except maybe automotive or electronics. Economic realities notwithstanding about where the money comes from to hire more employees or pay them more of course.

tanzam75 13y ago
She uses the term "department store" incorrectly. She means "hypermarket," where groceries are sold alongside general merchandise.
- cantankerous 13y ago
  Perhaps so, but still. Wal-Mart segments its departments like a department store would. Groceries are usually on one side of the store. Outdoor and auto are usually in a corner near each other. Electronics is its own thing. Home Improvement, Pet, Beauty, Pharma, Household, Crafts...they're all segmented by where their assigned shelf-space is. Each one has folks that are in some way assigned to it. This is my point.
  - Zikes 13y ago
    Segmentation at the end point doesn't necessarily mean that those 100,000+ SKUs under one roof isn't a lot. There are many places in the retail operations process where it's still a very big deal, including shipping and receiving, merchandise assortment planning, and departmental space planning. Additionally, the departments tend to be quite large, at times almost a store themselves. Whereas an employee working at a Best Buy or Circuit City could specialize in certain categories of electronics, a Walmart employee would have to be knowledgeable about all categories.

tanzam75 13y ago

She uses the term "department store" incorrectly. She means "hypermarket," where groceries are sold alongside general merchandise.

cantankerous 13y ago
Perhaps so, but still. Wal-Mart segments its departments like a department store would. Groceries are usually on one side of the store. Outdoor and auto are usually in a corner near each other. Electronics is its own thing. Home Improvement, Pet, Beauty, Pharma, Household, Crafts...they're all segmented by where their assigned shelf-space is. Each one has folks that are in some way assigned to it. This is my point.
- Zikes 13y ago
  Segmentation at the end point doesn't necessarily mean that those 100,000+ SKUs under one roof isn't a lot. There are many places in the retail operations process where it's still a very big deal, including shipping and receiving, merchandise assortment planning, and departmental space planning. Additionally, the departments tend to be quite large, at times almost a store themselves. Whereas an employee working at a Best Buy or Circuit City could specialize in certain categories of electronics, a Walmart employee would have to be knowledgeable about all categories.