Walmart Merchandising and Pricing Strategy Questions and Answers 2

Question 1

A product has a cost of $8.00 and Walmart targets a 25% markup on cost. What should the retail price be?

Accepted Answer

$10.00

Answer

$9.00

Answer

$10.50

Answer

$11.00

Question 2

What is the primary purpose of an endcap display in a Walmart store?

Accepted Answer

To highlight promotional or high-margin products and increase impulse purchases

Answer

To store excess inventory

Answer

To block aisle access for crowd control

Answer

To display items that are being discontinued

Question 3

What does 'planogram compliance' mean in Walmart's merchandising context?

Accepted Answer

Stocking products in the exact positions specified by the visual merchandising plan

Answer

Having enough staff on the sales floor

Answer

Keeping the store clean and organized

Answer

Meeting daily sales targets

Question 4

A vendor wants to increase their shelf space from 2 facings to 4 facings. What data should drive this decision?

Accepted Answer

Sales velocity, inventory turnover rate, and profit contribution per facing

Answer

The vendor's advertising spend

Answer

The vendor's relationship with the store manager

Answer

The attractiveness of the packaging

Question 5

What is 'shrinkage' in retail merchandising terminology?

Accepted Answer

The loss of inventory due to theft, damage, administrative errors, or vendor fraud

Answer

Products getting smaller over time

Answer

A decline in customer traffic

Answer

Reducing the store's square footage

Question 6

During a modular reset, you find a product that is not listed on the new planogram but still has significant remaining inventory. What is the correct procedure?

Accepted Answer

Place it on the clearance endcap, mark it down, and process it through the disposition system

Answer

Throw the product away

Answer

Force it onto the new planogram wherever it fits

Answer

Return it to the vendor without authorization