Connect with us

Business News

How and why Walmart is thriving right now

[BUSINESS NEWS] Once again, Walmart shows their might as a one-stop shopping giant, even during the pandemic.

Published

on

girl looking at walmart home screen on laptop

Love it or hate it, Walmart is a formidable player in the U.S. retail sales game, and during the pandemic, their sales have continued to grow. Here’s how they did it and what other retailers can learn during the dark days of COVID-19 and beyond.

Walmart has always had the knack to appeal to a broad buyer base, with a seemingly bottomless well of inventory and bargain prices. Cheap and plentiful goods are part of the formula, along with options for ecommerce. In 2020, online shopping is where it’s at, due to safety concerns. Walmart has seen a massive increase in online sales–a 97% increase, in fact.

Staying home was a recommendation, then a mandate, and is now a recommendation once more. Infectious disease experts, doctors, and scientists agree that less interaction with people and fewer outings, coupled with vigilant mask-wearing in public and hand washing, will help keep us safe and prevent or slow the spread of COVID-19. For people of a certain age and/or with compromised immune systems whose risk of a COVID-19 case being fatal, it’s imperative.

People began to make fewer trips to fewer places in order to stay safe. Thus the rise in online shopping makes sense. Because they already had an online shopping system set up, Walmart easily transitioned to providing more online sales, where customers could choose to pickup their orders or have them delivered.

Being a modern day trading post of sorts, a one-stop shopping spot, also helped bolster Walmart’s sales during COVID-19. Why risk going to three or four different stores when Walmart has groceries, cooking and gardening supplies, games, electronics, jigsaw puzzles, plus bath and beauty goods? Not to mention the extra time it takes to disinfect all the packages when you get home; it makes more sense for most people to only stop at one place. This time saved by going to one store (in this case, Walmart) instead of driving around can also help save your sanity.

Affordability, availability, and familiarity are key pillars of the Walmart formula for success. Easy is the magic word. Cheap is another word with extra appeal to the millions of people in the U.S. who’ve lost their full or part time jobs or have seen their hours/clients reduced since the shutdowns began in March. Stretching a dollar is the in-demand skill we all need to cultivate now, and shopping at inexpensive stores like Walmart is one way to do this.

For these reasons, Walmart’s second quarter sales surged as people began receiving their stimulus checks. Now, as most people have already received and spent their stimulus money, Walmart’s sales are slightly falling off again, though they are still strong. Their business model is working for consumers who need convenience and affordability.

Another factor in Walmart’s 2020 success is their massive inventory of in-demand items. I’m not even talking about the water and TP hoarders. As Americans stayed home longer, people sought ways to entertain themselves, set up remote workplaces for the adults and study areas for children and college students. People needed to exercise and cook more. Even jigsaw puzzles were nearly impossible to find online or in stores by the time early May rolled around.

Walmart’s sales of electronics boomed during this period: TVs and computer sales skyrocketed early on. As quarantine remained the order of the day, more people cooked at home more often, and cooking supplies also kept moving off the Walmart shelves and out of the warehouses. Many started working on their yards and gardens, and Walmart once again was there to accommodate.

Cooking and yard items still remain popular as people are realizing that they will be continuing to spend more time at home. People brightened their days and fought off boredom and the heat with inflatable pools for them, their kids, and their pets, or maybe bought bread pans, a pressure cooker, or lawn chairs.

Like many massive corporations, Walmart has had its share of scrutiny. They have been a problematic presence for a long time. However, they have always been able to reach their audience with low prices and a wide range of available items. These same factors have helped push their sales during 2020, and will likely continue to do so, especially if the government decides on issuing a second stimulus check to aid U.S. workers.

 

Business News

Keep your company’s operations lean by following these proven strategies

(BUSINESS) Keeping your operations lean means more than saving money, it means accomplishing more in less time.

Published

on

keeping operations lean

The past two years have been challenging, not just economically, but also politically and socially as well. While it would be nice to think that things are looking up, in reality, the problems never end. Taking a minimalist approach to your business, AKA keeping it lean, can help you weather the future to be more successful.

Here are some tips to help you trim the fat without putting profits above people.

Automate processes

Artificial intelligence frees up human resources. AI can manage many routine elements of your business, giving your team time to focus on important tasks that can’t be delegated to machines. This challenges your top performers to function at higher levels, which can only benefit your business.

Consider remote working

Whether you rent or own your property, it’s expensive to keep an office open. As we learned in the pandemic, many jobs can be done just as effectively from home as the workplace. Going remote can save you money, even if you help your team outfit their home office for safety and efficiency.

In today’s world, many are opting to completely shutter office doors, but you may be able to save money by using less space or renting out some of your office space.

Review your systems to find the fat

As your business grows (or downsizes), your systems need to change to fit how you work. Are there places where you can save money? If you’re ordering more, you may be able to ask vendors for discounts. Look for ways to bring down costs.

Talk to your team about where their workflow suffers and find solutions. An annual review through your budget with an eye on saving money can help you find those wasted dollars.

Find the balance

Operating lean doesn’t mean just saving money. It can also mean that you look at your time when deciding to pay for services. The point is to be as efficient as possible with your resources and systems, while maintaining customer service and safety. When you operate in a lean way, it sets your business up for success.

Continue Reading

Business News

How to apply to be on a Board of Directors

(BUSINESS) What do you need to think about and explore if you want to apply for a Board of Directors? Here’s a quick rundown of what, why, and when.

Published

on

board of directors

What?
What does a Board of Directors do? Investopedia explains “A board of directors (B of D) is an elected group of individuals that represent shareholders. The board is a governing body that typically meets at regular intervals to set policies for corporate management and oversight. Every public company must have a board of directors. Some private and nonprofit organizations also have a board of directors.”

Why?
It is time to have a diverse representation of thoughts, values and insights from intelligently minded people that can give you the intel you need to move forward – as they don’t have quite the same vested interests as you.

We have become the nation that works like a machine. Day in and day out we are consumed by our work (and have easy access to it with our smartphones). We do volunteer and participate in extra-curricular activities, but it’s possible that many of us have never understood or considered joining a Board of Directors. There’s a new wave of Gen Xers and Millennials that have plenty of years of life and work experience + insights that this might be the time to resurrect (or invigorate) interest.

Harvard Business Review shared a great article about identifying the FIVE key areas you would want to consider growing your knowledge if you want to join a board:

1. Financial – You need to be able to speak in numbers.
2. Strategic – You want to be able to speak to how to be strategic even if you know the numbers.
3. Relational – This is where communication is key – understanding what you want to share with others and what they are sharing with you. This is very different than being on the Operational side of things.
4. Role – You must be able to be clear and add value in your time allotted – and know where you especially add value from your skills, experiences and strengths.
5. Cultural – You must contribute the feeling that Executives can come forward to seek advice even if things aren’t going well and create that culture of collaboration.

As Charlotte Valeur, a Danish-born former investment banker who has chaired three international companies and now leads the UK’s Institute of Directors, says, “We need to help new participants from under-represented groups to develop the confidence of working on boards and to come to know that” – while boardroom capital does take effort to build – “this is not rocket science.

When?
NOW! The time is now for all of us to get involved in helping to create a brighter future for organizations and businesses that we care about (including if they are our own business – you may want to create a Board of Directors).

The Harvard Business Review gave great explanations of the need to diversify those that have been on the Boards to continue to strive to better represent our population as a whole. Are you ready to take on this challenge? We need you.

Continue Reading

Business News

Average age of successful startup founders is 45, but stop stereotyping

(BUSINESS) Our culture glorifies (yet condemns?) startup founders as rich 20-somethings in hoodies, but some are a totally different type.

Published

on

startup founders average age is 45

There’s a common misconception that startups are riddled with semi-nerdy, 20-something white dudes who do nothing but sip Nitro Brews and walk around the open office showing off the hoodie they wore yesterday. It turns out that it’s extremely rare that startup offices resemble The Social Network.

However, the academic backdrop for the real social network story (AKA Harvard), produced statistics that will serve to put the aforementioned misconception to rest. According to the Harvard Business Review, the average age of people who founded the highest-growth startups is 45. Say what?! A full-fledged adult?!

In fact, aside from the age category of 60 and over, ages 29 and younger were the smallest group of founders that are responsible for heading the highest-growth startups. I guess you can accomplish a lot when you’re not riding around the office on a scooter all day.

The study also found that older entrepreneurs are more likely to succeed. The probability of extreme startup success rises with age, at least until the late 50s. It was found that work experience plays an important role.

Many will argue, “Well, what about someone like Steve Jobs?” You could easily argue right back that it took Jobs until the age of 52 to create Apple’s most profitable product – the iPhone.

The study continues to answer questions like, why do Venture Capitalist investors bet on young founders? This goes back to the misconception at the start, and there’s a notion that youth is the key for successful entrepreneurship. Wrong.

There is also the idea that younger entrepreneurs are likely working with less financial options, so it may be common for them to take something from a VC at a lower price. As a result, they could be viewed as more of a bargain than older founders.

“The next step for researchers is to explore what exactly explains the advantage of middle-aged founders,” writes Pierre Azoulay, et al. “For example, is it due to greater access to financial resources, deeper social networks, or certain forms of experience? In the meantime, it appears that advancing age is a powerful feature, not a bug, for starting the most successful firms.”

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!