Industry trends are patterns or trends that occur within a specific industry. Therefore, Walmart store focuses on tremendous sales growth, the lowest price of a commodity, and manufactured goods. Walmart was able to invest in customers ‘ goods at affordable prices to improving the sales trends, with important data to help them remain competitive in the marketplace (Rice, Ostrander & Tiwari, 2016). I shall discuss the importance of these trends, how constantly affordable goods have been able to help the sales turns out, as well as tremendous sales grown since its inception. These Three Trends would be extensively discussed and feature in this research paper as we proceed in the subsequent discussion.
First, one of the major trends of Walmart is a tremendous sales growth. This trend has made Walmart to focus more on how to increase its sales over the years. Just like other retailers in the market, Walmart’s sales and revenue growth rely mainly on its ability to open other stores as well as expand to other markets globally (Rice, Ostrander & Tiwari, 2016). For example, Walmart has set up various branches across the globe. The company has about 10,900 stores, together with 10 websites operating globally. Walmart is a company to reckon with in the retail industry. Notably, focusing on increasing its sales, the retailer has done everything possible to strike more sales. Thus, Walmart is delving into strategies that expand its market for more sales.
Moreover, Walmart has majored on data collection and analysis to understand the market because of the trend in sales. It has a big data ecosystem. The big data ecosystem examines both new data and historical data daily. The operation covers various products and customers from sources. The analytic processes at Walmart analyses about 100 million information every day to maximize the bidding of each information acquired (McAfee et al. 2012). The primary goal of analyzing data at Walmart is to maximize the customer experience at Walmart stores, or when browsing at the website using their mobile phones. The solutions from big data analytics at Walmart are done to capture customer’s interest, and in turn, boost their sales across the globe.
Walmart uses data to understand the trends in point of sales data. Mining of data assists Walmart in determining sequence used to offer products recommendations to users in regards to what products were purchased at the same time or the ones purchased before another. The efficient mining of data at Walmart has contributed to an increase in customer-base (McAfee et al. 2012). For instance, the data mining process at Walmart was used to identify the rise in strawberry pop-tarts sales prior to a Hurricane. After understanding the relationship between Hurricane and Strawberry pop-tarts, Walmart chose the check the port-tarts prior to a hurricane.
The other trend is lowering the price of commodities. Price is an important factor in the market. The success of Walmart in the retail industry can be due to the price of its products. Walmart’s success is based on its customer-friendly strategy. There is no mystery at the core of its success in the industry, while other firms are struggling. Walmart’s ability to offer customers affordable prices through its slogan “everyday low prices,” which is the outcome of a process established on principles and processes (Abecassis, 2018). Walmart’s previous and current activities help stakeholders to understand the strategy that allows the retailer to do what it does best “sell cheap.” Thus, Walmart is a retailer that has focused on offering consumers with unbeatable prices anywhere.
Today, most business organizations are adopting the strategy of setting their pricing in the market. Due to this, the focus of Walmart is to sell its products at a low price in the market. Walmart’s majors on its slogan “Everyday Low Price” is similar to Amazon’s increased aggression on a unique pricing strategy of the goods on supermarket shelves, which are contributors to Walmart’s success (Abecassis, 2018). According to the Company’s presentation at the summit, Walmart wants to maintain a low price of 80% of its sales amount. To attain this price, Walmart, the suppliers that sell their products to the retailer, must reduce their prices or rather make cost changes to shave about 15%.
The other trend in the retail industry involves dealing with manufactured goods. Companies in the retail industry are focusing on selling manufactured goods. Just like other retailers, Walmart has adopted the “Made in the USA” ethos and hosted its third yearly Open Call for products manufactured in the US. Walmart’s Manufacturing Summit, which is its initiative to invest in the US industry. The strategy is to attract customers who attach value to US-based manufactured goods. In 2013, Walmart said that it is going to increase its sourcing of US-made products by $50 billion in the next 10 years (Abecassis, 2018). The commitment intended to increase the hiring lines at many American manufacturing companies.
The trends in the retail industry are an increase in sales, low pricing of products, and dealing with manufactured goods. Most of the companies in this industry are embracing the strategy of lowering the price of products to increase their sales. That said, Walmart is experiencing tremendous growth in its sales. For instance, it has majored on opening more stores across the globe to reach out to different customers. More to this, Walmart is trying to stabilize the prices of its products to maintain its slogan “Every day low price.”