There are several demographic factors that can affect Walmart’s financial growth
There are several demographic factors that can affect Walmart’s financial growth. One example, is the income level of Walmart’s customers within the different countries that it operates in. Walmart focuses on offering low cost products with the best value to three different tiers of shoppers (Walmart Target Groups, 2009). The first tier is called the “brand aspirational” or low-income shoppers (Barbaro, 2007). The second tier is called the “price sensitive affluent” or wealthier shoppers who are looking for a deal. The third tier is called the “value-price shoppers” or low-income individuals who can’t afford anything more.
Another demographic factor that Walmart must consider is age of their customers (Retailers, 2016). Providing products that are appropriate for younger and older customers will help them remain competitive in the industry. Family size is also another factor that the company must consider. Family sizes have consistently grown over the last few decades. Walmart has recognized the importance of this and has developed the “Super Walmart” that provides a one stop shop for the whole family. Overall, demographic factors allow Walmart to make strategic decisions when determining where to locate and how to meet the expectations and demands of their customers.