Walmart Associates, Former Store Managers Meet with Analysts at Annual Investor Conference in Bentonville
Walmart Stores Inc.’s (WMT) low-cost strategies are hurting U.S. sales and the company’s long-term revenue growth, according to current and former employees who meet with more than two dozen Wall Street analysts on October of 2011 at an extraordinary meeting in Bentonville, AR.
At the meeting Walmart employees spoke about a “vicious circle” of worsening business conditions driven by Walmart’s low-cost strategies. Walmart is facing significant challenges as competitors are squeezing the company from all sides and same-store sales in U.S. are down year over year. Management’s single-minded focus on cost cutting has led to pervasive understaffing. This short-handedness, combined with the computerized management initiatives imposed by the Walmart home office, in turn leads to many long lines at the register and bare shelves as restocking lags.
Watch a short video from the meeting:
See images of how understaffing is effecting Walmart stores: