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  1. #1
    OPM and Moderator Chuck Hamrick's Avatar
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    Wal-Mart Profit Shrinks After Weak Holiday Sales
    Thought this was intriguing report of the retail brick & mortar giant's lack of success with Q4 sales:

    Wal-Mart on Thursday reported full-year net income tumbled to $16 billion, down by nearly $1 billion from the previous year. The holiday season was especially disappointing. Link:
    Further makes the case for selling online and offering an affiliate program to get out the word.
    Last edited by Chuck Hamrick; February 21st, 2014 at 03:50 PM. Reason: typo

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  3. #2
    Outsourced Program Manager John Jupp's Avatar
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    Irony is that Walmart's UK arm is ASDA (bought out by Walmart) and ASDA has an affiliate program (actually more than one including a partnership with a giftware company). Is this another indication of affiliate marketing being light years ahead in the UK or is it more a case of US companies testing things out in the UK first?
    Flambi Media Limited - USA/UK/EU Affiliate Management Expertise

  4. #3
    OPM and Moderator Chuck Hamrick's Avatar
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    Wal-mart has been slow to push for eCommerce all along. They shuffled top brass a few years ago and I have yet to hear anyone comment on their success. Another important point on that podcast was that the cutbacks in the Food Stamps program hurt them directly as they make 50% of their revenue from groceries.

  5. #4
    What's the word? Rhia7's Avatar
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    I thought Walmart had an affiliate program on Linkshare?
    ~Rhia7 -- Remember the 7
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  6. #5
    Outsourced Program Manager John Jupp's Avatar
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    Quote Originally Posted by Rhia7 View Post
    I thought Walmart had an affiliate program on Linkshare?
    Yep, you're right. 2 in fact, one for Canada and 1 for the US.

    In the UK through their ASDA subsidiary they have a number and it gets confusing. They have one or is it three for insurance, one for promoting the George range of clothes and the partnership with Buyagift for gift experiences and personalised gifts, plus a grocery one as well.
    Flambi Media Limited - USA/UK/EU Affiliate Management Expertise

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  8. #6
    OPM and Moderator Chuck Hamrick's Avatar
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    They always did, never hear anything about it though.

  9. #7
    Outsourced Program Manager John Jupp's Avatar
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    Chuck

    Being pedantic now so apologies but doesn't that therefore make your statement
    Quote Originally Posted by Chuck Hamrick View Post
    Further makes the case for selling online and offering an affiliate program to to get out the word.
    somewhat nonsense if they have an affiliate program already?
    Flambi Media Limited - USA/UK/EU Affiliate Management Expertise

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  11. #8
    Outsourced Program Manager John Jupp's Avatar
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    I think what you meant was "further makes the case for selling online and having a properly managed affiliate program."
    Flambi Media Limited - USA/UK/EU Affiliate Management Expertise

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  13. #9
    OPM and Moderator Chuck Hamrick's Avatar
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    somewhat nonsense if they have an affiliate program already?
    Thread is not about Wal-mart's affiliate program but about the failure brick and mortar to grow in the face of the growth in online retail sales. Sorry if that wasn't obvious.

  14. #10
    Outsourced Program Manager John Jupp's Avatar
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    Nah mate, my apologies. I didn't read the article. Plus it's the weekend now for me, so time to kick back, feet up and relax.

    Stores could do a lot more than just buy online and collect in store. In some UK stores you can browse in store and pay online. Marks & Spencer have even trialed staff in some of their stores walking around with a tablet, taking customer orders, accepting payment over the web and arranging delivery, after customers have tried clothing and viewed merchandise in store. Wal-Mart could easily, given their huge inventory of products, trial something similar.
    Flambi Media Limited - USA/UK/EU Affiliate Management Expertise

  15. #11
    What's the word? Rhia7's Avatar
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    Quote Originally Posted by John Jupp View Post
    Chuck

    Being pedantic now so apologies but doesn't that therefore make your statement somewhat nonsense if they have an affiliate program already?
    Maybe they need more advertising and awareness for their affiliate program?
    ~Rhia7 -- Remember the 7
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  17. #12
    What's the word? Rhia7's Avatar
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    Quote Originally Posted by Chuck Hamrick View Post
    Thread is not about Wal-mart's affiliate program but about the failure brick and mortar to grow in the face of the growth in online retail sales. Sorry if that wasn't obvious.
    But in addition to the jist of the article you did say:
    Further makes the case for selling online and offering an affiliate program to to get out the word.
    http://www.abestweb.com/forums/1173816-post1.html
    And responses are taking that statement into account.
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  18. #13
    OPM and Moderator Chuck Hamrick's Avatar
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    Well you found me out, I had an ulterior motive to make the case for more online marketing by retailers via their affiliate program. I pick on Wal-mart because I always felt they snubbed online.

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  20. #14
    OPM and Moderator Chuck Hamrick's Avatar
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    Well I have been dupped, looks like Wal-mart did well in ecommerce last year:
    Wall Street wasn’t wowed when Walmart announced its consolidated net sales for fiscal year 2014 grew just 1.6% year-over-year. But the retailer was able to hang its hat on its global ecommerce sales, which CEO Doug McMillon said grew 30% and surpassed $10 billion. Link:

  21. #15
    ...and a Pirate's heart. Convergence's Avatar
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    Interesting that the cutbacks on SNAP last year (November) was only $29/family of three and $36/family of four - per month. You wouldn't think that would have that big of an impact until you look at the overall picture: $5B in total SNAP cutbacks for Fiscal Year 2014 - Good portion of that will be Walmart shoppers, I imagine. Any disposable income recipients had probably went to make up for groceries and not gifts, about $800M total for November/December 2013.

    Walmart announced a couple of years back they weren't happy with the amount of business they were doing online - so they started vamping up their online marketing. Their online business was never "bad". They are the number one B&M and they want to be the number one online, as well.

    Don't cry for them - they're far from hurting...
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  22. #16
    OPM and Moderator Chuck Hamrick's Avatar
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    Talked to a cashier at our local Wal-mart that supports an area population of 10k. She said grocery shopping was noticeably down in Dec. '13 over Dec. '12. Wasn't Wal-mart a big contributor to the current presidents last campaign?

  23. #17
    ...and a Pirate's heart. Convergence's Avatar
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    Probably used to averable about $600/month or so at Walmart - then discovered one of the local grocery stores DELIVERS. $10.95 delivery charge, 15 minutes online, and I get what I want without having to fight the crowds. Walmart is late to the party in home delivery, plus out here they don't offer groceries for home delivery. Easily $7K/year am spending elsewhere...
    Salty kisses, Sandy toes, and a Pirate's heart...

  24. #18
    OPM and Moderator Chuck Hamrick's Avatar
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    I think you are the exception but would be interesting to see if Wal-Mart, Target, etc. move into home delivery over the next five years.

  25. #19
    ...and a Pirate's heart. Convergence's Avatar
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    Walmart is testing it already.

    I still don't buy my good meats from them. Their USDA steaks are fine, but selection is not. Their Jenny-0 ground turkey is $1/package less. Veggies are fine because they're mostly from local farmers. Big savings in Shampoo, cleaning and paper supplies. Overall it's probably 20% less to shop at Walmart.

    I would consider using them for delivery, if their staff delivers what I want like their competitor does (same two ladies every week - they know what I like).

    I have no problem with Walmart - is that what you mean by being the exception?

    Not a fan of Target - clean stores but selections in groceries are limited. Occasionally buy a gadget there but their clothes suck as bad as Walmart's, lol...
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  26. #20
    Outsourced Program Manager John Jupp's Avatar
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    I did mention didn't I that the UK is always the test bed for US companies, before subjecting US consumers to the latest innovation? After all they don't want to upset their domestic customers right? So they get a subsidiary to try it out, in this case ASDA, Walmart's UK subsidiary.

    Online Food Shopping - ASDA Groceries

    Pay 8 ($13.36 at current exchange rates) a month and get deliveries to your door for the entire month with no additional charge.

    Don't want it delivered, choose a suitable time slot to collect from a store (any ASDA store).



    We’ll pick and pack your shopping for you, for free.

    No need to wait in for delivery, just collect whilst you're out & about — whether you’re picking the kids up or on your way home from work.

    We’ll even load everything in the boot (trunk) for you.


    Shop on the move with mobile apps.
    Flambi Media Limited - USA/UK/EU Affiliate Management Expertise

  27. #21
    ...and a Pirate's heart. Convergence's Avatar
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    A lot of what you said IS done in the US already - by companies that are more upscale and have higher margins than Walmart. Can't say the UK is a testing ground - least not with any conviction. Also, your "labour" rates are higher - Walmart has been considering using NON-store employees for deliveries - in fact, they're considering other shoppers to do their deliveries...
    Salty kisses, Sandy toes, and a Pirate's heart...

  28. #22
    OPM and Moderator Chuck Hamrick's Avatar
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    I have no problem with Walmart - is that what you mean by being the exception?
    No with home delivery, we're not that organized.

    We have Wal-mart, Smiths (Krogers) and Whole Foods. Smiths is 15% higher than Wal-mart and Whole Foods is 15% higher than Smiths.

  29. #23
    Outsourced Program Manager John Jupp's Avatar
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    Quote Originally Posted by Convergence View Post
    in fact, they're considering other shoppers to do their deliveries...
    I would not trust another customer to deliver my purchase whatsoever! I can just imagine some guy in a Columbo type Mac picking up some groceries, giving off a dirty muttering about the woman he's delivering to because the Kotex she's ordered was super sized. Why did an image of me in a dirty Mac just pop into my head?
    Flambi Media Limited - USA/UK/EU Affiliate Management Expertise

  30. #24
    ...and a Pirate's heart. Convergence's Avatar
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    Quote Originally Posted by Chuck Hamrick View Post
    No with home delivery, we're not that organized.

    We have Wal-mart, Smiths (Krogers) and Whole Foods. Smiths is 15% higher than Wal-mart and Whole Foods is 15% higher than Smiths.
    Population has a lot to do with it, I'm sure.

    36K population -

    1 King Soopers (Kroger) that does deliveries. 2nd one opening in May
    1 Super Walmart
    1 Super Target
    1 Big K (ROFL) Which should be out of business soon
    1 Safeway

    Albertson's was next door to Kmart but closed down about four years ago.

    We have Whole Foods about 30 minutes away - but really have to be in the mood for some free range something or another in order to head that way to pay twice as much...
    Salty kisses, Sandy toes, and a Pirate's heart...

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  32. #25
    OPM and Moderator Chuck Hamrick's Avatar
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    We buy all our meet at Whole Foods and it tastes much better. Get dairy and eggs delivered from a local dairy. Buy organic veggies for dinner. Wife likes Wal-mart deli meats over the others.

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