Walmart's same store sales have been declining and those of rivals Family Dollar and Amazon have been increasing. What could explain this recent change?
A) Walmart was too aggressive with its low-cost position and lost customers who wanted more upscale products.
B) Walmart changed its strategy to focused differentiation.
C) Amazon and Family Dollar changed their strategies to attract more upscale customers.
D) Walmart changed its strategy to attract more upscale customers.

Question

Quizplus · Accepted Answer

Walmart's decline in same store sales could potentially be attributed to a shift in strategy to attract more upscale customers, which may have resulted in a loss of its traditional customer base. Meanwhile, rivals such as Amazon and Family Dollar have been increasing their same store sales, potentially due to their ability to appeal to a wider range of customers, including both budget-conscious and upscale shoppers. Option A is possible, but lacks evidence to support it. Option B and C are unlikely scenarios as there is no indication of strategy changes from Amazon or Family Dollar, and Walmart has yet to fully embrace a focused differentiation strategy.

Walmart's Same Store Sales Have Been Declining and Those of Rivals