- In 2022, Walmart posted worldwide net revenue of $567.7 billion.
- In Central America, the retail store has 860 establishments.
- Mexico is the country, after the United States, with the greatest presence.
Last week, news broke that Walmart was laying off hundreds of workers who are serving in corporate roles. At the same time, the accounting records for the last fiscal quarter were not good and the outlook for the rest of the year was not good either.
What happens at Walmart? The world’s largest employer is in trouble in 2022 after almost two years of a pandemic that has paid very well.
That’s right, although a cut of 200 jobs is not significant in a giant that employs more than 2 million people around the world, the truth is that it is a warning sign that speaks of difficulties in promoting its growth. .
As we explained last week at Merca20, Walmart is not alone with these problems, its great competitor, targethas also announced that it will resort to new strategies to overcome what appears to be a crisis.
What will he do? It will offer deep discounts (more than usual) to get rid of excess stock of clothing, household items and electronic products.
convenience stores 7-Eleven they also said they will lay off more than 800 corporate jobs in the United States.
The three big problems of the giant Walmart in 2022
When the coronavirus pandemic began, rising prices were a good thing for Walmart.
Inflation drove consumers to discount retailers, and Walmart is one of them.
In 2021, Walmart understood that it had the scale to absorb inflation well enough not to pass on significant price increases to its customers.
But prices did not stop rising and Walmart’s “back” could no longer sustain prices. Sales values rose as in the rest of the retail.
In addition, consumers spend more on gasoline, for example, and their budgets are smaller.
Walmart’s other problem is stock: Walmart has too many products that it can’t sell fast enough.
In the last quarter, the firm founded by Sam Walton reported that the inventory grew more than 30 percent and, according to his employees, he no longer has room to accumulate so much overstock.
The American media assure that the columns of boxes even block the access to the bathrooms in some of the stores.
An internal memo published by Business Insider shows that managers told store managers that don’t use automated product ordering systems to help mitigate overstocking.
Like Target, Walmart has launched offers to clear its warehouses, but that leads to lower profits.
Another complication is that of human resources, which came to light last week.
Like its competitors, Walmart launched a massive hiring campaign to cover the lack of employees in the time of the coronavirus.
That happened until the end of 2021.
Now, with all the numbers going backwards, the firm said that “overstaffing is affecting the chain’s results.”
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