Walmart has been a household name for decades. They have been dominant in the retail industry, becoming the largest retailer in the world. There is a reason for this. The company has built their popularity around their low prices and high inventory holdings. Going to one of their stores gave the consumer the ability to find all of the products they are looking for under one roof. Although Walmart has experienced much success, there has been a major issue facing the company in recent years. I strongly believe that Walmart’s biggest issue is their brand image.
The world’s largest retailer has a major problem with their brand image. Over the years, Walmart has continued to struggle with maintaining a positive image for several reasons. They have been known to offer low pay with little to no benefits for their employees, while also having a high amount of issues within their staffing and shelving. Walmart has lost almost $3 billion per year due to stocking and vendor issues. In addition to this, the American consumer is losing their satisfaction with the retail mega-chain. More consumers today are staying away from their stores, stating in surveys that the stores were dirty, the shelves were messy, and the clientele there were crude. Some consumers don’t want to be a part of this kind of experience, and it is understandable why. Go to a Walmart, and there is a small but relevant chance you will end up witnessing a fight between a group of people, or someone being caught for shoplifting, etc. Although these problems may seem minuscule, I strongly believe that this is the root cause and the most important issue the company is currently facing.
Regarding labor relations, some of Walmart’s most loyal consumers have been shopping there less because of how the company treats its workforce. A good example of this is the fact that American women disproportionately hold the retail industry’s lowest paying jobs, resulting in a $40.8 billion pay gap between men and women. Walmart is the country’s largest employer of woman. Put those two together, and you’ve got big problem. If Walmart raised their wages to pay $25,000 a year for full-time work, they would potentially lift 1.5 million people out of poverty, including their families. Women are a large portion of this number, specifically single mothers with struggling families at home.
To combat these issues facing the largest retailer in the world, I would highly recommend that Walmart considers bridging the gap between male and female wages in the industry. This would boost employee morale and strengthen the company’s image in the public eye. As previously mentioned, according to the Union for Food and Commercial Workers (UFCW), Walmart could help push 1.5 million people out of poverty if they were to raise their wages to $25,000 year for full-time employees. I do not think that this is a risky move. With so much money already, Walmart shouldn’t have a struggle with raising their wages. I think that the benefits outweigh the negatives. This minor but significant change within the organization will cause a chain reaction that will help fix their problems with labor relations, employee morale, and stocking.
In summation, Walmart has been a household name for decades. They have been dominant in the retail industry, becoming the largest retailer in the world. Although Walmart has experienced much success, there has been a major issue facing the company in recent years. I strongly believe that Walmart’s biggest issue is their brand image. If Walmart can fix these problems, they can regain consumer confidence and repair their brand image. Raising the wages of their employees and bridging the pay gap between men and women will be monumental in changing the culture of Walmart.
