Wal-Mart Stores, Inc. (NYSE:WMT) Bets On More Inventory To Up Holiday Game


Wal-Mart Stores, Inc. (NYSE:WMT) is working to roll out an unusual holiday experience for its shoppers in 2015. Instead of selling holiday gimmicks like everyone else, the retailer is keen to make enough inventory available for its customers throughout the holiday season and beyond. In the strategy, Wal-Mart is hoping to stem customer defection to Amazon.com, Inc. (NASDAQ:AMZN) and other store rivals.

For years and counting, retailers have used time-bound offers and limited-edition deals to draw shoppers to their stores during holiday seasons. For retailers, the strategy is a great way to boost holiday sales as customers rush to lock in deals and spend more in store in the end. However, Wal-Mart Stores, Inc. (NYSE:WMT) doesn’t believe that traditional holiday retail gimmicks have any more flavors left in them.

What Wal-Mart Stores, Inc. (NYSE:WMT) intends to do instead is solve inventory shortage problem during this year’s festive season. According to Wal-Mart, limited-edition deals end up frustrating customers, which can see them keep off in the future if you try to entice them with such offers again. As such, Wal-Mart is planning long-term. The retail wants to keep shoppers flowing to its stores during the holidays and every day after the holiday season ends.

Fixing out-of-stock problem

One of the strategies that the company is employing is ordering enough inventories for the Thanksgiving weekend as well as Christmas shopping. By fixing the problem of inventory shortage, the retailer is hoping to impress its customers so that they don’t defect to rival stores such as Target Corporation (NYSE:TGT), Best Buy Co Inc (NYSE:BBY) or Amazon.

More online deals

The other weapon that Wal-Mart has for the 2015 holiday season is bringing more Black Friday deals online. The retailer revealed that 96% of Thanksgiving weekend deals will be offered both online and in stores.

No problem of unsold merchant

Although the issue of increasing inventory availability might see Wal-Mart Stores, Inc. (NYSE:WMT) left with too much of unsold merchant after the holiday, the management says there is nothing to worry. According to Wal-Mart US CEO, Greg Foran, they are using data at their disposal to predict inventory requirements, thus eliminating the problem of unsold goods after a busy season.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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