SPRINGDALE — Consumers aren’t finding the variety of products they used to on Walmart shelves, as the retailer o◊ers fewer fl avors, sizes and forms of some products.

Columbus, Ohio-based Retail Forward in its October Wal-Mart World reports some indication of consumers shopping less at Walmart because they can’t fi nd what they want.

About 24 percent of shoppers reported going to Walmart less this year compared with a year ago, while 14 percent of shoppers reported going to Walmart more often, according to the Wal-Mart World report by Jennifer Halterman, Retail Forward senior consultant.

Those numbers are from Retail Forward’s Shopper-Scape surveys from December 2007 to August 2009. The ShopperScape survey asks 4,000 people each month about their shopping habits.

“Wal-Mart’s SKU (stock keeping unit) rationalization and reduction efforts as part of Win, Play, Show may actually be a point of contention with shoppers; some report reduced inventory as a reason for shopping Walmart Supercenter less often,” the Wal-Mart World report stated.

Shoppers filled in explanations for some reasons they go to Walmart less, including “too crowded, reduced inventory, no longer carries items I previously purchased” and “they’ve cut out a lot of items they used to carry,” according to Retail Forward’s Wal-Mart World.

Wal-Mart’s win, play, show strategy means it wants to be well-stocked in major brands and categories that sell well; and will play inother brands that shoppers want, but won’t o◊er as great a selection.

Wal-Mart will devote even less shelf space to the “show” products, items it carries because some shoppers buy those items but they aren’t the biggest sellers or perhaps aren’t national or dominate private label brands.

The inventory reduction doesn’t only a◊ect customers who may have to shop elsewhere to fi nd what they want. It also affects Wal-Mart suppliers, said Patricia Edwards, financial analyst with Storehouse Partners in Bellevue, Wash.

“I’m hearing that the SKU and inventory reductions have made life difficult for all of them, but especially the mid-sized suppliers,” Edwards said. “One particular supplier in the health and wellness area was hoping as of a couple of months ago for flat numbers this year and to ‘just get to the next year.’ ”

In addition, Edwards said she’s read and heard reports the inventory reduction can hurt Wal-Mart sales.

“Consumers get cranky if they’re used to buying a certain item which gets discontinued. Sometimes, they will try another brand in its place, but if it’s important enough some will shop elsewhere to get what they want,” Edwards said.

Wal-Mart is not the only retailer reducing its inventory selection, said retail consultant Carol Spieckerman, president of newmarketbuilders in Bentonville.

“Walgreen’s customer centric retailing initiative,for example, has similar goals to Wal-Mart’s Project Impact, with less clutter, clear sight lines and elimination of duplicative stock keeping units,” Spieckerman said.

Wal-Mart is farther along in the process, Spieckerman said. She thinks inventory units can be reduced by as much as 15 percent to 18 percent without a◊ecting a retailer’s profi tability.

Spieckerman agrees with Edwards that those who supply products to retailers get pinched when product o◊erings are streamlined.

Customers, though, may get some benefi t as categories, from health and beauty aids to meat and canned goods, are easier to shop, Spieckerman said.

Wal-Mart representatives did not return a call placed to the media hot line during business hours Thursday regarding the inventory reductions.

Wal-Mart will report its fiscal 2010 third quarter earnings Thursday.

News, Pages 19 on 11/08/2009

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