Low-cost retail giant Walmart is assessing how it sources product in an effort to reduce prices, particularly as commodity prices are down globally.
At an analyst and investor briefing last week, president and CEO of Walmart U.S. Greg Foran, said the company has initiated several projects designed to create a better price gap over its rivals, Reuters reported, including reviewing the way it works with suppliers.
“While we have pockets of leadership, in more competitive markets our gap is too small. And against some competitors we are beaten,” Foran said.
According to Reuters, Foran said Walmart’s investments in lower prices would be balanced against the need for customer service investments. The company announced in February that it would spend $1 billion to raise entry-level wages to $9 an hour, for roughly 500,000 employees or 40 percent of its workforce, a move expected to improve customer service in the long term.
Foran said Walmart stores could use improvements in terms of better shelf stocking and rotation of fresh produce.
Improvements will be put in place so that, “by the time we hit holiday season our stores are clean, tidy, well-merchandised and run by engaged associates. Today in the main we are not,” Reuters reported Foran as saying.
