Wal‑Mart plans massive overhaul

Wal‑Mart Stores Inc. will retool its 3,256 U.S. stores over two years to give them a more customized mix of goods and layout for six key groups of customers, including Hispanics, African‑Americans and affluent shoppers, the executive in charge of Wal‑Mart’s U.S. operations said Thursday.

The move is the latest strategy twist for the retailer as it struggles to revive growth rates that have fallen behind smaller rivals such as Target Corp. and after the company’s first quarterly drop in profits in a decade.

The approach, called segmentation, follows months of new initiatives from Wal‑Mart to make sure each store is better tailored to its locale and to lure more affluent shoppers, who may come to Wal‑Mart for groceries and basics but skip the company’s more profitable aisles like apparel and electronics.

Eduardo Castro‑Wright, president and chief executive of Wal‑Mart U.S., said stores will get a more specific mix of products and layout to appeal to one of the six target groups–based on what market research showed was the best approach for that location.

“Driving customer relevancy will drive growth,” Castro‑Wright said in a Webcast of a presentation to financial analysts. In Arizona, the world’s largest retailer employs 28,738 people at 68 super centers, discount stores and neighborhood markets along with three distribution centers and 13 Sam’s Club outlets.