Walmart (NYSE:WMT) stores in low-income neighborhoods may have poorer customer service, according to a study.
Research conducted by Contexts — a quarterly publication ran by the American Sociological Association — determined that the location of one of the retailer’s stores could be linked to the effectiveness of its customer service.
The study found a correlation between low-income communities — many of which have large numbers of minorities — and underwhelming customers service. More than 35,000 Yelp reviews were examined in more than 2,800 Walmarts around the nation.
Assistant professor of sociology at Columbia University Adam Reich believes that Latino and black communities have poorer customer service than white communities because Walmart is understaffed in the former, which puts more of a burden on each worker, thus reducing the quality of their work.
“Walmart is the largest retailer and largest employer in the world; moreover, it has consciously branded itself as a champion of and boon for disadvantaged communities,” writes Reich. “Its underinvestment in these communities is thus particularly notable.”
It is believed that a move by the company in the early 2000s is associated with this result due to policies that eliminated employees and lowered the quality of stores. This study was not true in every location, and some customers were more affected than others.Walmart has made recent efforts to boost store presence with more employees working on the floor. However, the move will require the megastore to cut costs, including a decision to cut about 7,000 office jobs with the company.
WMT stock is up 0.7% Tuesday.
