The Walmart Incident: Leadership and Communication Lessons from Walmart for Small Business Owners
On a warm August evening, after we had dropped our daughter off at UNCW for her first year of college, we decided to make a quick run to Walmart in Wilmington, North Carolina. It was around 8 PM, and like many families in the same situation, we needed a few last-minute items to help our daughter decorate her dorm room.
We finished our shopping and headed to the checkout area only to find a chaotic scene. The self-checkout lanes were closed, leaving a long line—about 50 people—waiting for assistance at the only open checkout station. A man, who appeared to be the supervisor in charge, was standing by the self-checkout area. When we asked why the self-checkout lanes were closed, his response was both shocking and frustrating: “I was supposed to be relieved 30 minutes ago, and no one has come, so I am shutting down the line so I can go.”
Meanwhile, the store manager was in one of the checkout lanes, bagging items as the cashier worked. She wasn’t helping solve the larger issue; instead, she seemed visibly upset, frustrated with the customers for being there in the first place. The result? Customers were leaving in droves, some visibly upset, and others abandoning their carts entirely.
This entire situation could have been avoided with clear communication and effective leadership. And unfortunately, these lessons from Walmart are lessons that many small business owners can relate to.
The Cost of Poor Communication
Communication breakdowns are one of the most common issues small businesses face, often leading to dissatisfied customers, lost sales, and a tarnished reputation. The lessons from Walmart are a clear example of how quickly things can fall apart when communication fails. The supervisor didn’t communicate his needs to the team, the store manager didn’t step up to take control, and ultimately, the customers were left feeling frustrated and neglected. The lessons from Walmart go beyond big box stores and show up on small businesses too.
The Small Business Administration (SBA) reports that 78% of customers will abandon a business after just one bad experience. That’s nearly four out of five customers walking away, never to return, simply because they didn’t receive the service they expected.
The Role of Leadership
In the lessons from Walmart, the store manager’s actions (or lack thereof) compounded the problem. Instead of addressing the issue head-on, she remained in one checkout line, bagging items while the rest of the store was in chaos. This is a textbook example of poor leadership—focusing on a minor task instead of solving the larger problem. Her failure to lead created a ripple effect, leaving both employees and customers to fend for themselves.
As a small business owner, your leadership sets the tone for how your business operates. If you’re not actively involved in solving problems and guiding your team, your business is at risk of falling into disarray.
Lessons From Walmart: 3 Ways Poor Communication and Poor Leadership Hurt Your Business
- Reduced Customer Trust and Loyalty
When communication fails, customers lose trust in your business. As seen in the Walmart incident, poor communication leaves customers feeling neglected, which can lead to a loss of loyalty. For small business owners, especially those serving local communities, this can be devastating. - Decreased Employee Morale
Employees look to their leaders for guidance. When leadership is lacking or when there is no clear communication, employees can become disengaged. The Walmart supervisor had essentially given up because he felt unsupported, and this attitude trickled down to the entire team. - Loss of Revenue and Customer Retention
Ineffective leadership and communication don’t just hurt customer satisfaction—they directly impact your bottom line. Customers who leave unhappy may not return, and worse, they could spread negative reviews online, driving away future business.
Learning from the Breakthrough Blueprint: Effective Leadership & Communication Strategies
At McKinney Business Solutions, I help my clients overcome these challenges by using strategies from my Breakthrough Blueprint framework. Here are three effective communication and leadership strategies small business owners can implement that came from the lessons from Walmart:
- Establish Clear Communication Channels:
Have structured and open communication pathways in your business. Regular team meetings, feedback loops, and clear roles ensure everyone is on the same page. The management clearly knew there would be an influx of parents and students buying last-minute items. This was evident by the aisle displays and specials for “back to college” promotions. Having a huddle for common problem avoidance and resolutions would have gone a long way. - Empower Your Employees:
Just like the supervisor at Walmart, your employees need to feel empowered to make decisions and solve problems. Leadership isn’t about doing everything yourself; it’s about enabling your team to step up when needed. Take charge and do the right thing in the moment. Stepping over to the self-checkout as the manager of the store sends a strong message that you are willing to roll your sleeves up and others should be willing to as well. It would have also solved the growing problem in about 5 minutes. - Lead by Example:
As the leader of your business, your actions set the tone for your employees. If you show calm and decisive leadership, your team will follow suit. If you’re disorganized or disengaged, your employees will mirror that behavior. If you put your head in the sand and avoid problems, your employees will quietly quit on you like the self-checkout manager at Walmart.
How to Implement Clear Communication Channels in Your Business
Start by assessing where your communication breakdowns are occurring. Are employees unsure of their responsibilities? Are customers receiving inconsistent information? Once identified, put clear structures in place. This could include:
- Daily huddles or weekly team meetings to align everyone on current priorities.
- Open feedback systems where employees can voice concerns or suggestions.
- Customer communication protocols that ensure a seamless experience, from initial contact to follow-up.
These are simple yet powerful steps that can drastically improve the communication flow in your business. These lessons from Walmart could have saved thousands of dollars that night in August, but more importantly, they can save your business countless costly mistakes.
Conclusion
The lessons from Walmart and the incident in Wilmington serve as a cautionary tale for small business owners everywhere. Poor communication and ineffective leadership can lead to chaos, lost sales, and a tarnished reputation. By implementing strategies like those found in the Breakthrough Blueprint, you can avoid these pitfalls and ensure your business thrives.
If you’re ready to take your business communication and leadership to the next level, contact me, Ryan McKinney, at McKinney Business Solutions. Let’s work together to build a business that runs smoothly and efficiently.
