Wal-Mart to trial consumer segmentation
Wal-Mart Stores will refit its 3,256 U.S. stores over two years to give them a more customised mix of goods and layout for six key groups of customers, including Hispanics, African-Americans and affluent shoppers.
The move is the latest strategy twist for the world’s largest retailer as it struggles to revive growth rates that have fallen behind smaller rivals such as Target Corp. and after the company’s first quarterly drop in profits in a decade. The approach, called segmentation, follows months of new initiatives from Wal-Mart to make sure each store is better tailored to its locale and to lure more affluent shoppers, who may come to Wal-Mart for groceries and basics but skip the company’s more profitable aisles like apparel and electronics.
The target groups identified by Wal-Mart’s market researchers are Hispanics, African Americans, ’empty-nesters/boomers,’ affluent, suburban and rural shoppers.
Wal-Mart is testing the approach in 20 to 40 stores and one store is adopting a Hispanic identity, in part by offering more Hispanic grocery products, a fresh-from-scratch bakery and selling 300 to 500 breakfast tacos a day.
