Walmart Store Departments and Product Categories
Provide at least two financial motives for having a Home Clearance section in the Furniture area of the Home, Furniture & Appliance Department, and expound your reasoning.
Walmart is among the companies that have invested in creating a website that attracts customers and increases the need to purchase. For instance, the company has a top deals section that is used to attract customers by informing them about discounted and unique products. The company’s website also has a Home Clearance section for furniture. One of the financial reasons for having this section is to enable the company to list the same product in different categories, thus ensuring that customers see the same product many times and create a smooth shopping experience without going to many links to get the item. Customers may also develop an interest in an item if they see it many times, hence increasing sales, particularly impulse sales, which increases revenue and income and expands the profit margin. The second financial reason is enhancing marketing. If the customer does not see the product in the general category, such as the furniture category, they will still view it in the home clearance section.
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Give details on why high performance in unit sales doesn’t always result in high levels of revenue and profitability.
A company’s success is, in most cases, accessed based on the sales made and the income generated. High performance in unit sales does not always lead to high levels of profitability and revenue. For instance, the grocery department at Walmart has high sales due to the high demand for grocery products, but it does not yield a lot of revenue because most products in the unit have a low profit margin. On the other hand, the Shoes and Apparel department has lower unit sales but yields a lot of revenue and creates profitability because the items in the category have a high-profit margin, and customers are willing to spend more to get the products they want in the category due to assure high quality.
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Question 
Product performance is a common KPI used to inform managers which products are selling well. However, some products may have high unit sales but still be poor revenue generators.
Walmart Store Departments and Product Categories
Instructions
- Access the Walmart.com – All Departments
- Under All Departments, select the Home, Furniture & Appliances department, then choose Furniture. On that page, scroll down to the section titled Home Clearance. Use information from the Walmart website, course content, and additional research to complete the following:
Respond to these prompts:
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- Provide at least two financial reasons for having a Home Clearance section in the Furniture area of the Home, Furniture & Appliance Department and explain your reasoning
- Explain why high performance in unit sales doesn’t always lead to high levels of revenue and profitability
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