Wal-Mart adding salaried managers to auto service centers

Wal-Mart confirmed plans to add a salaried position of an assistant manager to each of its more than 2,500 Walmart Tire and Lube Express centers within its U.S. stores. This move comes in addition to the deployment of department managers recently announced by Walmart U.S. CEO Greg Foran.

The expanded staffing is an effort to improve customer service ratings for the retail giant and, if the plan is successful, perhaps boost sagging supercenter sales.

“We began testing this back in 2012 in a couple of stores and it was gradually expanded to 600 stores. Now we are in the process of rolling it out nationwide because the tests have proven greater customer service,” Wal-Mart spokesman Kory Lundberg told The City Wire.

He said that half the assistant managers will come from the hourly ranks within the stores. The other half will come from current assistant managers or outside the store.

“It also provides a clear path for advancement for hourly associates working in auto care center,” Lundberg said.

He said the extra labor to stores will not result in a price increase in services because it is part of the $1 billion investment in wages, training and career opportunities announced in February by Wal-Mart Stores CEO Doug McMillon.

Wal-Mart execs recently said they plan to tweak and expand their services portfolio this year in response to customer requests. Improving overall customer service ratings is a one of the major goals for Foran and his U.S. team since he took over in October 2014. The retail giant took the bottom spot among retailers earlier this year in the American Customer Service Satisfaction Index rating report. It was Wal-Mart’s worst ranking since 2007 and executives have since vowed to address these issues with added store labor and services while also improving in-stocks and guaranteeing everyday low prices with an expanded options for delivery of online orders.

Foran said it won’t happen overnight but the retailer is making progress in recent months with much work still to do. 

Retail experts said expanded and improved services offered within Wal-Mart’s formats, are one way the retailer may draw more traffic, particularly in supercenters, given they are likely losing some share to competing Neighborhood Markets. 

Foran said he likes the supercenter’s full offering potential with vision and auto services which are two of the recent announcements out of Bentonville in recent days.

Consumers are often drawn to Wal-Mart’s car-care services because of the price. The standard oil change with Quaker State Oil retails for $19.88, and includes a battery check with rear and front tire pressures also checked. This is a value compared to the $29.99 cost for similar services at Sears.  

One main gripe from consumers is the time it takes to get a car serviced. Wal-Mart does not guarantee a time-specific service. It’s first come, first serve basis could mean up to a 2.5-hour wait, which was the case recently mid-week, mid-day at the new Walmart Supercenter in Springdale.

For consumers with an hour or more to spend, Wal-Mart is likely banking on them shopping in the store during that wait while the service is performed. Experts said tepid same-store comparables reported in the recent quarter are reason enough for Wal-Mart to invest in improved services. Edward Jones analyst Brian Yarbrough said customers may not think to go shopping while they wait, so it’s not a slam dunk.

Wal-Mart stores are equipped with free Internet so even if consumers don’t want to shop  in the store, the might shop online while they wait.