Organic Growth Walmart

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Organic Growth at Walmart The latest trend or “craze” per say of the twenty first century has been that of organic foods. The U.S market for organic food at one time was growing at a pace of 20% per year, which is significantly greater as compared to the 3-4% of the food sector as a whole. This undeniable growing demand in organic foods caught the attention of Douglas Degn, an executive vice president of the wildly popular organization, Wal-Mart. With the demand of organic products often outstripping supply, Degn was faced with the decision of whether or not to jump on this shortage and give people what they want out of organics from Wal-Mart, or if he should continue to build on the products they already offer to consumers, in order…show more content…
Organic consumers are not going to feel comfortable buying their premium organic foods from the same place they could buy cheap home appliances, children’s toys, or unfashionable clothing. What it is recommended Wal-Mart do in order to boost their sales is to improve the image of the products they already have, so customers will buy more. The one area in which they could highly benefit improving is their apparel, which is a higher-margin section that is lagging behind in sales. By shifting into selling more upscale, trendy clothes and housewares, Wal-Mart would enable itself to appeal to higher income consumers, possibly reaching out to that 15% of the population who do not shop at Wal-Mart, or even enticing current consumers to purchase these high margin products. They could accomplish this by creating a “fashion merchant” position that would tour Wal-Mart and competitors stores, and suggest ways to adapt merchandise, floor plans and apparel to different groups. Degn should reconsider the fact that Wal-Marts business strategy of “everyday low prices” is what has made them into the successful company they are today and shouldn’t stray to far from what has made them successful in order to increase profits. Degn should work on improving the products Wal-Mart currently sells instead of focusing on organic food, which is something they have never done before. If
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