“Save money. Live better.” The classic yellow and royal blue branding. The iconic smiley face. How can consumers of today’s society not associate the aforementioned with the largest retailer in the world: Wal-Mart? Society generally perceives Wal-Mart as the quintessence of all successful retailers, with its loyal consumer base and reputable brand name, among a plethora of other factors. But is Wal-Mart really as successful as it seems?

Wal-Mart recently announced its third straight quarter of steadily declining same-store sales. This time around, the metric depreciated by 0.3%, a paramount measure of any company’s welfare (or lack thereof). To make matters worse, the loyal customers that frequented Wal-Mart, amidst it’s stagnating sales, spent substantially less than their previous visits. What is the prominent reason for Wal-Mart’s persistent setback? Ironically enough, the heavily promised (and marketed) “low prices” simply aren’t low enough. Customers are shifting gears to retailers of even lower prices, namely, dollar stores. In addition, some customers expressed their frustration of poorly stocked shelves, a direct ramification of the retailer’s frugal employment practices.

Walmart’s subtle but distinct downfall over the past three quarters begs the question: will this unfavourable trend be a permanent one? Only time will tell.

Picture & source from: http://www.businessweek.com/articles/2013-11-14/why-walmart-really-needs-food-stamps#r=hpf-s