Why Wal-Mart Stores Are Unpopular in America

Why Wal-Mart Stores Are Unpopular in America

United States citizens hate Wal-Mart Stores more than any other country. In recent years, the company has been surrounded by various controversies like bribery abroad, poor labor practices, and intimidation of small businesses.

But the retail giant has a much bigger problem besides its poor popularity.  American customer satisfaction index carried out a survey earlier this month, which showed the company poor score of 68 and considered to be the most unpopular retailer in the country. Nordstrom a fashion retailer top the survey by 86 points, however the industry average was 77.

It was Wal-Mart’s poorest score since 2007. This was 8th time in a row that the company stands last between all retailers. Let’s see why the company is continuously falling.
Wall Mart has reduced its stores workforce by almost 120,000 since the recession and currently its employment level is extremely low that the stores are continuously facing issues in maintaining their shelves with the required items. That’s not all; some of the other complaints are problems in finding stock items, uncooperative staff, and long checkout ques.
Wal-Mart is always known for its low prices promise and it was able to capitalize on that for years. But with increasing online shopping and e-commerce competition, the company is against rivals like eBay, Amazon and Groupon and other online retailers that can easily challenge Wal-Mart on price cut. The decision to challenge the competitors on price has been a precarious one for the company. However, Wall-Mart has also been under criticism of its inability to match store and online prices.

As the world’s biggest retailer Wal-Mart success specify that customer satisfaction ratings are not that important for a retailer, but this is not how the company used to work always. After the death of Wal-Mart founder Sam Walton in 1992, company’s customer satisfaction rating was more than the industry average just because of the attitude of Sam Walton’s towards employees. Compared to Wal-Mart today, Walton used to reward employees with half time and pay for Sundays plus bonuses on occasions. After some time these rewards disappeared as management changes.
An unexpected announcement by the company to increase its minimum wage to $9 dollar can be taken as a positive step towards future. This decision will help the company to enhance its employee’s moral and it will affect over half a million staff members. Some of the customers welcomed the news however it will increase the prices slightly. This step of making employees happy will help the company to increase customer satisfaction and the company will end up smiling in future.

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