Based on consumer evaluations across various retail categories, Wal-Mart provides the least satisfying customer experience—three times over. According to the American Customer Satisfaction Index’s annual report on retail, Wal-Mart consistently ranks at the bottom among competing stores in three categories: department & discount stores, supermarkets, and drug stores. Compared with industry averages in these categories, the mega-retailer receives its best rating for groceries, but Wal-Mart’s customer satisfaction score of 71 (100-point scale) remains a far cry from the supermarket leaders: Trader Joe’s and Wegmans at 85.
The ACSI report is based on survey data collected in the critical fourth quarter of the year, which encompasses the holiday shopping season. The best of the best in 2014 includes upscale department store Nordstrom and perennial ACSI leader Amazon.com, which tops the Internet retail category at 86. But even among rivals on the discount side, Wal-Mart lags far behind. Target and Dollar Tree earn ACSI scores of 80 and 79, respectively, while Family Dollar and Dollar General tie at 75.
A year ago, Wal-Mart scored 71 in the department and discount store category, but now tumbles down 4% to 68—its lowest score since 2007. In the supermarket category, Wal-Mart’s customer satisfaction also declines, but by a scant 1%. 2014 marks Wal-Mart’s debut in ACSI’s drug store category. At 68, Wal-Mart’s pharmacy services are no more highly regarded than its overall merchandise or groceries.
This dismal customer satisfaction picture for Wal-Mart coincides with the company posting its weakest sales growth in five years. As reported by the Associated Press, Wal-Mart recently announced its intention to raise worker pay. While there is a connection between highly satisfied customers and happy employees, Wal-Mart clearly has a long way to go to reach a level of satisfaction that matches—let alone exceeds—retail sector averages.