Store Reports and Decision-Making

Store Reports and Decision-Making

Use at least one specific example to explain the relationship between the information in a store’s OSCA Report and Lost Sales for the store.

The OSCA (On Shelf Customer Availability) report shows items on an outlet’s shelf—the things there could fail to meet the client’s expectation of quality. In addition, these items could just be missing. For instance, the skin toners found at Walmart could have alcohol as a significant ingredient. Considering the adverse effects that alcohol can have on human skin, clients are likely to avoid these toners, which means the current stock does not move. This results in sales loss as clients seeking the specific toner purchase it elsewhere. If the store does not find the skin toner that meets the client’s needs and expectations, it could lose many sales and clients.

Explain the potential influence of external environmental factors (weather, infrastructure repairs, changing community demographics, etc.) on a monthly Comp Sales Report for a Walmart store.

External factors could affect the Comp Sales Report for any Walmart Store that has been operational for over 13 months. The changing demographics of the community is one such factor. As the community members grow older, they are more likely to purchase healthier items due to health conditions. In addition, the younger, more health-sensitive generations are also expected to look out for more nutritious food items. This implies that the Comp Units for healthy food items increase significantly. At the same time, the Comp Units for other non-healthy food items were reduced considerably. In addition, the on-hand healthy items increased due to the new demand.

 Describe one recommendation for moving a Walmart store from deleveraged to leverage.

Deleveraged stores tend to incur more labor expenses and make fewer sales, which may not support the payroll costs. To change this situation, the store can seek to increase its sales by providing clients with the desired goods and services. The OSCA report is sufficient to guide a change. Besides ensuring that these goods are available, the store should advertise to its target market to inform them about the presence of specific goods and services.

Identify one KPI you believe is a good indicator of overall store performance and present your rationale.

The Leveraged/deleveraged report is an ideal indicator because it provides a general overview of a store’s performance. From the information, one can quickly tell if a store is profitable by comparing the sales to the payroll costs. This leads to further investigation of any identified anomalies while referring to the specific KPI.

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Store Reports and Decision-Making

Review: Common Terms and Reports Used by Walmart Operations Managers to Make Decisions

Conduct additional internal and external research to identify and understand other standard terms and reports used in the retail industry and the Walmart organization. Use the information gathered from the linked resource, this week’s readings and videos, and your research to address the following:

1. 1. Use at least one specific example to explain the relationship between the information in a store’s OSCA Report and Lost Sales for the store
   2. Explain the potential influence of external environmental factors (weather, infrastructure repairs, changing community demographics, etc.) on a monthly Comp Sales Report for a Walmart store. Comp Sales reports show daily, weekly, and monthly sales comparisons for a store.
   3. Describe one recommendation for moving a Walmart store from deleveraged to leveraged.
   4. Identify one KPI you believe is a good indicator of overall store performance and present your rationale.