Spending On Employees, Technology Pays Off For Walmart

Though investors were at first frightened about profit-depressing expenditures by Walmart – on e-commerce technologies and higher employee wages – there may be reasons tobe relieved. The company’s 3rd quarter results showed same store sales in the U.S. up for the fifth quarter in a row; store traffic increased 1.7 percent. The company acknowledged that its $1.2 billion “investment in our people” – i.e., wage hikes for thousands of employees – was the key driver of the big drop in consolidated operating income. But the increased pay for low-wage employees as jobs get more complicated and demanding has helped improve customer service, increase store cleanliness and reduce out-of-stocks. A key benefit is a big hike in customer satisfaction scores.