Why Walmart Customers Rank the Chain Second to Last

In recent months, there's been a steady stream of customers who've stopped shopping Walmart (WMT). Now, a recently released Consumer Reports survey of more than 30,000 American shoppers details exactly what's pissing off Walmart shoppers.

It turns out Walmart shoppers are so dissatisfied with their shopping experience they rated the chain next to last, with Kmart the only store getting a worse satisfaction rating. Among the findings:

• On Walmart's key appeal factor -- price -- survey respondents rated 10 other retailers at least as good, including Sears (SHLD), Dillard's (DDS), and JC Penney (JCP). So much for Walmart's "Always low prices -- always" slogans and dedication to being the low-price leader.
• Complaints about Walmart were legion: Nearly three-quarters of shoppers had at least one thing to complain about regarding their Walmart experience, and half had two or more complaints. Among them: poor quality in categories such as apparel.
• Dillard's stood out for customer service, while Walmart and its membership-warehouse chain Sam's Club tied with Kmart for stores where shoppers were unhappiest with service levels.
• Long checkout lines were a factor customers didn't like at Walmart, Kmart and Midwestern superstore chain Meijer.

The results stood in contrast to the top rankings snagged by Costco (COST), which earned outstanding scores for merchandise quality, exceptional value and great selection.

Walmart president and CEO Mike Duke has been talking up the company's commitment to consumer research and "listening to the customer" lately. The company could save some money on R&D and use this report as a textbook for what to change at Walmart that might help them retain the customers who are straggling away as the recession ends. But oops -- Sam's Club's plan is to cut staff levels, not increase them.

Toughest of all may be changing public perception that there are lowest prices elsewhere. Walmart would seem to be knocking itself senseless on that point, but apparently the message still isn't getting through.

Photo via Flickr user James Ellsworth Related:

• Walmart: Too Big to Succeed?
• Walmart's Huge Overseas Expansion Distracts From Its Domestic Saturation Problem
• Walmart's Fantasy $100B Expansion Plan
• Sam's Club Plan -- Pay More for Memberships While We Cut Our Staff
• Why Walmart Can't Hang Onto Its Customers