During 2006 and 2007, Walmart decided to eliminate two long-standing components of its business: merchandise layaway and off-the-bolt sales of fabric (also called by-the-yard sales). Each of these decisions met with considerable controversy among Walmart customers.

Required:

1. Research these two Walmart decisions and write a brief paragraph explaining its point of view in making each decision. Include any information you can find about the profitability of the segment and possible plans for an alternative in the fabric decision.

2. Describe the “typical” Walmart customer who was most impacted by these decisions.

3. Write a brief paragraph from this typical customer’s point of view explaining how Walmart’s decision would impact the customer.

4. Identify three possible effects of each decision on other segments of Walmart’s business. Be specific in terms of both the segment and the possible impact.

5. Consider a small rural community in an economically depressed area of the United States. How might each of these decisions impact the people in that community? Contrast this to the impact felt in larger urban areas of the country.