100 Business Strategies: Walmart's secret mantras for global success

Supermarkets have become integral to daily life, replacing small village grocery stores and evolving into a global phenomenon. From local markets to international giants, supermarkets are now ubiquitous.

Walmart’s rise from a neighborhood store to a global retail powerhouse offers valuable lessons in retail success. Its growth isn’t solely due to market demand but is driven by strategic innovations.

The power of purchase

Walmart’s success stems from its ability to buy products at the lowest prices and pass those savings onto customers. From fresh produce to high-tech electronics, Walmart’s strategy ensures high-quality products at competitive prices.

Everyday Low Prices (EDLP)

Walmart’s EDLP strategy underpins its pricing philosophy, providing a consistent array of products at low prices. This approach builds brand credibility and customer trust, reinforcing Walmart as a reliable source for groceries and household items.

The art of merchandising

Walmart excels in product presentation, creating visually appealing displays and engaging ads that capture consumer interest. Its effective merchandising strategies significantly boost sales and revenue.

Service at its core

Beyond selling products, Walmart prioritizes exceptional customer service. Staff members are trained to assist with returns, answer queries, and provide support, fostering strong customer relationships.

Rollback pricing

Walmart’s “Rollback” pricing strategy, featuring bright yellow tags on discounted items, encourages impulse purchases. These temporary discounts create a sense of urgency, compelling customers to act quickly.

Private label brands

Walmart strategically promotes its private label brands, offering quality products at lower prices. This not only attracts price-conscious shoppers but also builds customer loyalty and increases profit margins.

Relationship building

Walmart adapts to local cultures, tailoring its offerings to regional preferences. For instance, coastal Walmart stores stock beach essentials and seafood, enhancing customer connection through cultural relevance.

Walmart’s sales tactics highlight a focus on creating deep, lasting customer relationships rather than merely selling products. For those interested in business success, Walmart’s strategies offer insightful guidance.

(The author, Dr. Sudheer Babu, is an entrepreneur, writer, poet, and management consultant. He is the founder and managing director of Kochi-based De Valor Management Consultants Private Limited. Email: [email protected])