Tuesday, April 21, 2015

Wal-Mart to Remove Zone Managers in Store Overhaul

There are changes going on and the workers need to see it coming if they don't 
know already. Be aware of this and if you need to get out, work at doing so.
These are changes again coming. If it gets crappy get out!

~~~~~Wal-Mart to Remove Zone Managers in Store Overhaul
Retail giant Wal-Mart Stores Inc. WMT announced that it is eliminating the job position
of zone managers from its U.S. stores in an effort to streamline its operations.
The change will affect around 14,000 employees, as there are generally about
six zone managers per store. The company will re-assign these zone managers as assistants
and department managers with no changes in their pay structure, Bloomberg said.

The zone managers own responsibility of several departments, which may include
overseeing the pharmacy, health or beauty-product sections.
The position was created in addition to individual department managers to improve
efficiency and customer service and hence sales. However, the Bentonville,
AK-based company reportedly found that department
managers better understand and interact with shoppers instead of zone managers.

The decision to remove the zone managers' post is thus justified on part of the retailer,
as it has been working to improve customer service. The move is expected to reduce
bureaucracy, improve customer service, and will give more responsibility to front-line
workers. In addition to the shift of zone managers, the world's largest retailer stated
that it has plans to add 7,000 to 8,000 department managers as part of an overhaul
of its store operations. Increasing the number of department managers will help
the company better understand customers' needs.
The company is expected to complete the changes by mid-June.

We note that Wal-Mart is undergoing a turnaround plan in order to improve its sales,
business operations and customer service. As part of the strategy, the company expects
to strengthen the roles of the department managers and will raise the starting wage for
some of these positions to at least $13 an hour this summer and at least
$15 an hour early next year, as was stated in the open letter to employees in February.

Walmart also stated that it will raise entry level wages to at least $9 an hour this month
and to at least $10 an hour by Feb 2016. In addition, the company would spend around
$1 billion to raise wages of approximately 500,000 full-time and part-time associates at
Wal-Mart U.S. stores and Sam's Clubs in the first half of fiscal 2016.

The strategy also involves addressing other perceived weaknesses such as poorly
stocked shelves or stale grocery offering.
It is encouraging that Wal-Mart has been vigorously working on improving its shopper
trends through these initiatives. The company also believes that assigning ownership
of work to department managers will help to retain good employees in a restricted
labor market.

***Keep in mind Walmart made around $500 billion in sales and is up in gross income
and internet sales also up. The wage cost is covered by sales and gross income not an
issue about it at all!

No comments: