Walmart consolidating its U.S. store business divisions, restructuring to accelerate pace of change
Category: #retail  By Saipriya Iyer  Date: 2017-09-14
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Walmart consolidating its U.S. store business divisions, restructuring to accelerate pace of change

Walmart is streamlining its U.S. store operations in order to score a competitive edge in the gigantic retail business space, cite reliable source. In a bid to maintain the growth curve, the American conglomerate is reported to consolidate its U.S. businesses from six divisions to four. Experts claim this move to be extremely strategic by Walmart, given the fact that it will enhance the U.S. giant’s business profile with improved communication, better execution, and streamlined decision making. The restructuring of these U.S. stores is expected to robustly speed up the changes that Walmart is likely to usher in the retail industry in near future.

Reportedly, Walmart’s U.S. divisions are, at present, spread across the South East, West, South Central, Mid-Atlantic, and Midwest. As of now, no detailed information has been disclosed regarding the new divisions, except for the fact that these stores will reflect a fairly distinctive look from the ones designed earlier. Citing reliable sources, Walmart is likely to cut down the number of regional managers from 44 to 36, as a part of its restructuring project, which is expected to be completed by October, this year. Potential investors have welcomed this move with open arms - evidence to the fact being, the sudden surge in the share values this week. The stock value has been raised to USD 79.91 on Tuesday, registering a 15% growth with regards to its annual appreciation value till date.

With an aim to considerably simplify the U.S. business operations, Walmart is returning to an approach which they had practiced three years ago, as revealed by the company spokesperson. The retail giant has been encouraging the consolidation structure since the beginning of the year. In February, Walmart made to the headlines with its announcement of consolidating its Bentonville, Arkansas based buying operations to win an advantage over the other contemporary e-commerce giants such as Amazon. Under the agreement, Walmart had claimed to integrate both - web orders and store order, in a single platform.

The shake-up followed several layers of job cuts at the retailer’s home office at Bentonville, Arkansas over the past two years. It is also being reported that Walmart has been paring expenses to counterbalance the increased spending on employee wages and e- commerce. Walmart’s business profile and structure has changed dramatically over the years and experts claim, this consolidation is yet another move by the retail giant to accelerate the pace of change.



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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