Walmart: Sorry, We Stopped Selling Things We Couldn't Make Money On

Wal-Mart (WMT), the world’s largest retailer which has sales greater than the GDP of many countries, has decided it is so successful that it can stock products that no one wants.

According to Reuters, Wal-Mart  has put roughly 300 items back on its U.S. store shelves after the retailer said it “disappointed” customers by not stocking certain products. “We did discontinue some things that people didn’t buy very often, but were aggravating to a customer to lose,” said Wal-Mart U.S. Chief Operating Officer Bill Simon.

Simon did not mention that Wal-Mart probably loses money on the items and that shelf space could be more profitably devoted to goods that are in higher demand. Simon also did not say that the company’s yield-per-store is hurt by keeping  inventories of products that almost no customers want.

Wal-Mart’s, known for operating huge super stores which offer super low prices, has obviously changed its merchandising philosophy. The retailer will now sell products that no one wants at a loss and not make it up on volume.

Douglas A. McIntyre