Sunday, March 23, 2008

20600370 entry

At the midst of deteriorating decline a lot of retail companies are looking for some ways to keep the sales up. Wal-Mart is one of the models which structures are followed in order to sustain retail business. The reasons for deterioration decline are: there are too many stores now that provide good discounts.
So what are the ways Wal-Mart uses to keep customers "come back a little bit more often?" One of the ways is advertising. Wal-Mart is known for sharpening advertisements where they are more "into pop-culture" style.
Another thing Wal-Mart is known for is store refurbishment. Wal-Mart invests a lot of money for renovation. As a result the stores have brighter lightening and wider aisls. The study shows that a customer stays in those shops forteen minutes longer than in other stors.
The third stretergy, Wal-Mart opens new stores. They say "If you are opening fewer stores, you are not diminishing the return." This is "an extreme method" for adding moew checkout lines when you have a geografic saturation. As a result shoppers celebrate a less crouded stores by spending more money.

The last stretergy which is onpening fewer shops seems controvercial to me. People have thins perception "the more people, the better product. " Also, I think people are attracted more to more crouded placed rather than empty. However, in case the store are too saturated, taking this step does make sense.

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