Walmart Lessons to Kenyan Supermarkets

In Kenya, the top supermarkets include Naivas, Carrefour and Quickmart. Others include; Chandarana FoodPlus, On The Way, CleanShelf, Eastmatt,  Choppies, Tumaini and Shoprite.

Where do find yourself shopping the most? What do you like about that supermarket? How would you rate their service?

Now let’s travel all the way to the United States, specifically to Dallas in Texas…

As we drove into the Walmart parking space with my sister, I couldn’t help but wonder how on earth she would remember where we parked because the parking lot was HUGE and full.

That was the first thing I noticed about Walmart.

They say when Americans do things they do them big. Walmart is one example. Some of their outlets can be over 20,000 square meters.

For a Kenya travelling abroad the automatic doors and the huge aisle spaces at Walmart will definitely catch your attention.

I enjoy shopping at my local neighborhood Quickmart, they have Excellent Customer Service. I also enjoy shopping at Walmart when i travel to visit my family and friends in the U.S.

Having had the opportunity to experience both sides, there are practical lessons that the Kenyan outlets can learn from Walmart.

Let’s first explore Walmart…

The Company Background

Fast Facts:

• Walmart is a retail store founded in 1962.
• Walmart is the largest retail store in the world.
• Walmart has close to 11,000 stores in 27 countries.
• The retail store has over 2.3 million employees.
• It serves more than 240 million customers each week.
• Walmart competitors include Alibaba, Amazon, Best Buy, Costco and Target and Kroger.
• Walmart returns billions of dollars to shareholders through dividends and share repurchases.

According to a Walmart financial report, this was the business description given:

• Walmart helps people around the globe save money and live better anytime and anywhere by providing the opportunity to shop in retails stores and through ecommerce.

• Walmart’s focus is to improve it customer-centric experience on the e-commerce and retail stores through innovation.

• The operations of Walmart are in three segments; Walmart U.S, Walmart International and Sam’s Club.

 

The Four basic beliefs of Walmart are:

• Service to the Customer – Listening and anticipating customers’ needs and wants.

• Respect for the Individual – Meeting customers’ expectations; safe and compliant products reflecting the best value.

• Strive for Excellence – Not just meeting, but exceeding the customers’ expectations.

• Act with Integrity – Working diligently to be the most trusted retailer.

 

Key Lessons from Walmart

1. Convenience

I asked my 15-year-old nephew Jay what he liked about Walmart and these were his exact words. “Walmart is convenient. It has everything and stuff is easy to find.”

I then asked him if it’s cheap and he said, “I don’t know because I don’t pay. My mom does.”

Walmart has a large merchandise selection and each product also has a variety of brands to choose from.

It’s not uncommon to go to a supermarket in Kenya and not get all the items you wanted. To fully fulfill a shopping list, you might have to go to two or more stores.

The first lesson is for Kenyan supermarkets to stock more variety of products to qualify to be a one stop shop.

It is however commendable that most supermarkets have fairly very well labelled aisles making products easy to find. This enhances the overall customer experience.

 

2. Price Leadership

Products at Walmart are cheaper compared to other competing retail stores. Here are some key aspects to note when it comes to Walmart’s price leadership.

• Every Day Low Pricing (EDLP)

They have a philosophy called ‘Every Day Low Pricing’ (EDLP) whose aim is to win the trust of customers by ensuring that their pricing will not change under frequent promotional activity.

• Every Day Low Cost (EDLC)

They also have a price commitment called ‘Every Day Low Cost’ (EDLC) with the focus of controlling expenses so that cost savings can be passed on to customers.

• Throw Back Prices

Walmart will often mark down their prices for promotional purposes and this is a major reason why customers love shopping there.

• Price Matching

Walmart has a policy where products bought on their online store, Walmart.com and be matched with other online retail stores.

This gives an option to customers to compare prices with other online retail stores and if they find a better deal elsewhere, Walmart matches it.

A friend once compared prices of Air pods on Walmart and Amazon and since they were cheaper on Amazon he called Walmart and they matched the price for her.

Isn’t that on a whole new level of customer service with the aim of enhancing customer loyalty and retention?

This aspect, if adopted by local supermarkets would go a long way in balancing out product prices locally. The consumer would also be on the winning end of this option.

 

3. Quality Merchandise

Walmart believes that customers shouldn’t have to choose between quality products and products they can afford

Walmart has a quality department that is responsible for product performance standards, specifications and performance testing.

They also have a team responsible for compliance with legislation and regulations through establishing and monitoring the testing compliance program and overseeing recalls and product withdrawals.

Kenyan supermarkets have quite some room for improvement when it comes to quality control of the products it offers.

It is not uncommon to find sub-standard or replicated products locally.

 

4. Strategic Locations

Walmart has many competitors especially in the U.S market but it’s true to note that you will find several Walmart stores before locating any of its competitors.

Most Walmart stores are strategically located in neighborhoods making them an easy choice for customers due to proximity.

Kenyan Supermarkets have increasingly been using this strategy with supermarkets having increased presence in most residential areas.

 

5. Ample and Free Parking Space

Supermarkets are normally anchor stores in most malls in Kenya. This means that they are usually the ones driving in traffic.

When it comes to parking space, sometimes customers have to drive round and round just to find a parking spot.

It’s quite inconsiderate for parking space to be charged to customers coming into malls to spend.

I like the fact that most retail stores pay for parking time for customers who meet the minimum shopping value. For a supermarket like Carrefour that amount is 3000 shillings. Though that amount is still high, it’s a notable incentive.

Walmart stores have huge and free parking spaces.

The only hard part might be finding a spot near the store entrance but other than that customers do not have to worry about finding or paying for parking.

6. Huge Aisles

This may seem like a trivial shopping aspect but being able to push a sizeable cart through an aisle without constantly being in the way of other shoppers enhances a customer’s shopping experience.

Walmart has such huge aisles that it can accommodate two shoppers with mega sized carts and still leave some space.

Though some supermarkets in Kenya have sizeable aisles, most have limited space that more often forces shoppers to pull smaller carts and inevitably, shop less.

 

7. Self-Checkout

Imagine being able to scan your own items and pay without having to queue for a cashier.

That is one of the aspects I admire about most retail stores in the U.S, Walmart included.

Though security issues involving theft might stand in the way of such a technology, it would be great to have more check out options in our local supermarkets.

It’s however important to mention that the option of scanning the QR Code on the Safaricom M-pesa App while checking out saves a minute or two when paying for shopping though there is still human intervention.

 

8. Online Shopping Store

Walmart’s online platform is user friendly and convenient. It makes everyday life easier for busy families.

Most top supermarkets in Kenya now have online stores but there are some aspects of online shopping that they can borrow from Walmart.

Walmart has different options when it comes to collection of shopping items.

• Home Delivery

Items bought on the online platform are delivered to the doorstep.  This is already happening with Kenyan stores.

• In store pick up with no human intervention

Items are collected from the store through a dispensing machine. The items are usually consolidated and ready for pick up. This is an option that is yet to be adopted in Kenya.

• Curb side pick up

Items are collected from a designated area at the store’s parking lot where the customer waits in the car and their shopping is delivered.

This would be a great option especially because some retail stores do not have ample parking space.

 

9. Flexible Return Policy

Walmart has a return policy where customers are allowed to exchange or get a refund for items bought.

While this option has the potential of being misused in Kenya, it would come in handy for genuine customers.

Over the last few years, Kenya’s retail store market has been hit hard with two major stores; Nakumatt and Tuskys going out of business.

Currently however, there has been tremendous growth and competition resulting in improved service delivery.

10. Walmart Membership (Walmart +)

In 2021, Walmart launched a new membership program with benefits including;

• Unlimited free shipping (On eligible items) with no order minimum.
• Unlimited delivery from store.
• Fuel discounts
• Mobile scan & go for a streamlined in-store shopping experience.

Local supermarkets have loyalty cards where shoppers accumulate points that are redeemable at a stated rate and these points can be used for shopping.

Kenyan supermarkets are however yet to launch membership programs for their customers.

 

11. Domestic Sourcing

Walmart’s goal is to spend an additional $50 billion over the next 10 years in U.S products.

Currently, Walmart buys about two-thirds of their products from what is made, sourced or grown in America.

As Walmart increases its international presence, it carries with it American companies with the top two beneficiaries being Procter & Gamble and PepsiCo.

This boosts the revenues of these and many more companies resulting in sustained employment opportunities.

Our local supermarkets source most of their products locally but over the last few years there has been an increase in imported products on the shelves.

An intentional approach to support local farmers and manufacturers and businesses would be a great way to increase brand strength and local job opportunities.

 

12. Corporate Social Responsibility (CSR)

Walmart prides itself in operating globally and giving back locally.

Walmart supports fights against hunger and healthy eating, women’s economic empowerment, career opportunities and sustainability. Walmart’s reputation for disaster relief efforts is strong.

Walmart allows a share of the giving to be directed by the local stores who better understand the needs of their communities.

Our local supermarkets have done well judging from the publicized CSR initiatives but there is always room for improvement in supporting the local communities and national level initiatives.

 It’s not all rosy for Walmart…

Walmart has found itself in the public light for numerous negative reasons but the one that tops the list is employee policies.

This has resulted in high employee turnover and poor customer service.

Our Kenyan Supermarkets can also take lessons from that and ensure good working conditions and remuneration for their workers.

 

In Conclusion…

A global business like Walmart enjoys economies of scale and market power among other countless benefits.

There are countless lessons smaller retail stores can learn from the largest retail store in the world.

This article has highlighted different lessons that our local supermarkets in Kenya can borrow from Walmart to increase growth and improve service delivery.

Through this article it is clear that Customer Service delivery in supermarkets is not limited to the one on one interactions with customers but through each of the points highlighted in this article.

They each contribute to the overall customer experience.

 

Add to the list…

Through your travel and exposure, what other aspects of our local supermarkets’ service delivery need to be improved compared to other global retail stores?