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

A 25% markup on an $8.00 cost equals $2.00, making the retail price $10.00.

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

Endcap displays are premium retail real estate used to showcase promotional items and drive impulse buying.

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

A planogram is a visual diagram showing where specific products should be placed on shelves, and compliance means following it exactly.

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

Shelf space allocation should be based on measurable performance metrics that justify the additional space.

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

Shrinkage represents inventory loss from all causes, directly reducing profitability.

Walmart Practice Test