Will Wal-Mart Greeters Increase The Company's Bottom Line?

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infamous store greeters are back, and they mean business. The friendly staff who stood in front of the company's entrances to smile and say hello to customers have been absent for three years as the company tried them in new positions like directing store traffic and helping to stock shelves. However, the low-cost retailer is going back to basics and

to their position at the front doors in hopes of saving the firm money and boosting its bottom line.

The Wal-Mart greeters will be encouraged to improve customers' experience in the store, but their primary function will be to save the company money by cutting down on theft. Without the greeters, Wal-Mart saw a rise in thefts as people filled their carts and simply walked out the door. The greeters will also be instructed to randomly check receipts in an effort to dissuade people from leaving with stolen merchandise, a problem that took 0.13 percentage point off of Wal-Mart's quarterly profit from February to April.

The reintroduction of greeters also underscores the company's renewed focus on customer service. Chief Executive Doug McMillon has encouraged store managers to improve customer relations as it has proven to make a sizable impact on sales. Workers are encouraged to greet customers who are 10 feet away and walk customers to find specific items rather than giving them directions.