Following the shutting down of its kiosk program, XM Satellite Radio has discontinued its contract managing store level retail field support staff with Wal-Mart, Orbitcast has learned.
The national team, which was employed by National In-Store (NIS), was comprised of over 30 field personnel and 4 regional managers. Their duties were primarily to manage the training and merchandising compliance of the Wal-Mart associates at the store level.
It's important to note that this does not affect XM's retail partnership with Wal-Mart which is XM's largest retail partner. This team supported over 2,000 Wal-Mart stores nationwide, according to a person familiar with the matter.
XM made the announcement internally on Friday, but the program will continue "business as usual" until the end of February. The company cited budgetary constraints and lack of company revenue to justify keeping the program going forward, according to the source.
As a result, XM will manage their relationship with Wal-Mart directly (much like what Sirius already does). This is yet another sign that the company is reducing retail-related expenditures, especially following weak holiday shopping sales.
And the cuts continue. Wal-Mart, by the sheer number of locations it has, is a relatively large retail powerhouse for XM. It doesn't make sense to support this retailer with a dedicated field force for 3+/- receivers and misc. acessories.
Wal-Mart will continue to produce 2 - 3 receivers per month for XM and Sirius each just by blind luck. Did it ever really make sense to have a warm body in the store to "teach" or "train" the uneducated and unsophisticated hourly sales staff about XM? I guess the answer is a resounding "NO"!!!!!
Let's hope that Circuit City and Best Buy are next.
I might be wrong, but it looks like XM is betting the farm on the merger going thru.
Hopefully XM will not be sending an entourage of executives and their wives to he Grammy Awards in February. If they do, they should be forced to stay at the Motel 8 and rent minivans to shuttle them to and from.
Let's see how serious these folks are about getting their affairs in order.
I don't think that XM is betting on the merger going through. I think the better scenario is that they are trying to survive in the event, I mean when, the merger is challenged by DoJ and the FCC does not bless it.
This company is Broke - With a capitol "B"
I think XM is preparing for the merger.
To Good Riddance:
I hope your company decides to replace you!!! Preferably with something of equal intelligence like say.....a ROCK!!!!!
Get a clue!!
I never knew these guys existed for the Walmart stores! Every time I go into Walmart, I check the satrad section and it is usually in total disarray with very few products on display.
It's XM logic to replace the only field sales team that actually had a positive market share
It's XM logic to replace the only field sales team that actually had a positive market share
To: "Good Riddance is an Idiot"
I guess you're one of the elite Wal-Mart cast members beeing let go.
Sorry to hear about your job loss. Maybe you can find a position at Wal-Mart in the pet food section. Give me a "W". Give me an "A" . . .
Have fun.
Has anyone looked at XM or Sirius financials? XM is overvalued and on its last legs, SIRIUS is a dead horse. Whether they can combine two losing management teams into a winner is a dicey proposition. The company is saddled with extraordinary debt and expenses (this is a satellite based company afterall)--- I doubt even Mel can lasso this wild horse even if the merger is approved.
Has anyone looked at XM or Sirius financials? XM is overvalued and on its last legs, SIRIUS is a dead horse. Whether they can combine two losing management teams into a winner is a dicey proposition. The company is saddled with extraordinary debt and expenses (this is a satellite based company afterall)--- I doubt even Mel can lasso this wild horse even if the merger is approved.
Has anyone looked at XM or Sirius financials? XM is overvalued and on its last legs, SIRIUS is a dead horse. Whether they can combine two losing management teams into a winner is a dicey proposition. The company is saddled with extraordinary debt and expenses (this is a satellite based company afterall)--- I doubt even Mel can lasso this wild horse even if the merger is approved.
Has anyone looked at XM or Sirius financials? XM is overvalued and on its last legs, SIRIUS is a dead horse. Whether they can combine two losing management teams into a winner is a dicey proposition. The company is saddled with extraordinary debt and expenses (this is a satellite based company afterall)--- I doubt even Mel can lasso this wild horse even if the merger is approved.
Good cost cutting move by XM. It is of my belief that XM is preparing for a thumbsdown on the merger and is engaged in slashing costs. Once this merger is turned down, further cuts will be on the horizon. Getting their "fiscal house" in order will be top priority. While Mel and the dog runs out of money by year's end.
Billy Bob, according to NPD data Sirius has been the retail share leader in wal-mart for the last 5 quarters. And Sirius does not have a retail team in Wal-Mart. What does that tell you?
It was a good move by XM to cut them loose.
Pfreak, just as a point of clarification, Wal-Mart sales are not recorded by NPD. Still, it's true that if Sirius doesn't do this and they're doing just fine, there's no reason for XM to do it either.
Cutting the fat is all.
While the cost cutting of a National sales force my be beneficial on the surface ;it is prudent that you remember the reason you use third party companies is cost savings , in otherwords XM could not have run the program internally as cost effective as farming it out .It will be of interest to see if any of the upper management support positions associated with this program and anyothers that are cut respond by having their positions eliminated. After all if you are getting your "fiscal house" in order then XM's got to look at their top heavy salaries for internal adminstration of any persuing programs involving retail
distribution. I agree that XM is preparing for a merger turn down and this is the begining of a "panic attack" and most likely a reduced product offering in Wal Mart and other retailers that currently offer XM products.
Agreed Pfreak
By the way, If your buying an xm and don't know anything about sat. radio. Avoid getting advice from a walmart employee.
A point of reference on a national sales force and Wal Mart >Pfreak.
Satellite radio is what Wal Mmart calls a category, true Sirius did not have a sales force calling on their stores, but to push XM products you still touch the competition and explain the differences to WM associates. Now if I am Sirius, why not let XM train the category, after all
satellite radio is satellite radio, a few bells and whistles different in the equipment, the big difference is programing. To train you have to show the differences, to show the differences trains the associates on both companies. Sirius had the best of both worlds, no cost for a sales force and exposure in the category.
To Pfreak :
WM does not share info with NPD. Having a positive share with WM, gave XM leverage with investors and later Sirius. An advantage now lost.
To Pfreak :
WM does not share info with NPD. Having a positive share with WM, gave XM leverage with investors and later Sirius. An advantage now lost.
Good point Sat Rad Fan, the strategic advantage of leveraging market share at store level has now been lost and we must remember on the negative comments on WM associates not knowing Sat rad, the National sales team only touched about 2000 stores per the article and just maybe your experience Pfreak had was in a store with no sales team coverage. I would hate to have had the job of trying to train WM asociates with their turn over, it was an endless endeavor. It will be of interest to see what all plays out. In the WM enviroment out of sight out of mind, loss of a national focus on XM's part, the inability to motivate market share, at store level, and most likely reduction of products offerings( you know retail sales were down) and in a WM enviroment that spells( reduced) offerings or the boot all together.
The deeper consideration here is the impact the National Team did make and the bigger question" is the fate of these 34 or so WM experienced veterans. Would truly be a human interest story to see who grabs them up( maybe Sirus market share goes in the toliet) after all they were around for a while apparently and must have done someting right to help XM get to the merger.
Wiley said ~ "This company is Broke - With a capitol "B""
No offense Wiley, but what is your definition of broke? If you're speaking from the point of view of strictly business, then yes... XM is hurting, but they are far from broke and are taking all the correct and necessary precautions to survive in a post-merger denied world. The moves of the last couple of months will certainly help this company to survive for a couple more years just fine... though the stock price will not be pretty.
But if you're speaking from a sense of comparing XM to Sirius... then you should know that XM has much higher liquidity than Sirius -- and has higher cash flow than Sirius. If your speaking from the point of view of comparing XM to Sirius -- then you would be wrong.
I don't know your position on Sirius -- so I'm just giving you both sides of the arguement up front...
-
What is interesting about all of these cuts announced over the last week, like the elimination of the Wal-Mart support team and the mall stands is the lack of any major firings at the top of the sales and marketing organization for XM. Isn't there a Chief Marketing Officer whose job it is to rebrand the service to make it more compelling?
Where are the results of the actions taken by this Chief Marketing Officer and his staff?
All I've seen from the company so far is cutting the pawns and keeping the generals.
When the war in Iraq wasn't going so well, didn't the President accept the resignation ('fire') of Rumsfeld and replace ('fire') the generals in command and replace them with new leadership?
I fear that there are many more cuts to come in the retail field at Best Buy and Circuit City and any other place that XM currently supports and that senior management will continue to refuse to accept responsibility that rightfully belongs at their feet.
Just a thought . . .
What is interesting about all of these cuts announced over the last week, like the elimination of the Wal-Mart support team and the mall stands is the lack of any major firings at the top of the sales and marketing organization for XM. Isn't there a Chief Marketing Officer whose job it is to rebrand the service to make it more compelling?
Where are the results of the actions taken by this Chief Marketing Officer and his staff?
All I've seen from the company so far is cutting the pawns and keeping the generals.
When the war in Iraq wasn't going so well, didn't the President accept the resignation ('fire') of Rumsfeld and replace ('fire') the generals in command and replace them with new leadership?
I fear that there are many more cuts to come in the retail field at Best Buy and Circuit City and any other place that XM currently supports and that senior management will continue to refuse to accept responsibility that rightfully belongs at their feet.
Just a thought . . .
Good point "outside trader Dan" XM did help to train the category, but I would think it was slanted toward XM. By cutting their field staff, XM has only helped to eleviate Sirius, and lower their own value. WM also suffers as now there is no one to help train their staff. Shoppers will now go to competitors.
Point of information to all, my son does work in WM and Sirius does have a presence In Wal-mart, albeit a much smaller one than XM.
I agree with bk2.. I didn't know they even had anyone in the store who knew what XM radio is.. i think they think it is an i-pod thingy... what a bunch of bananas...
I never knew these guys existed for the Walmart stores! Every time I go into Walmart, I check the satrad section and it is usually in total disarray with very few products on display.
--------------------
Most of the Wal-Marts I've been in , the Sirius and XM displays are in disarray , the display models aren't working . Luckily , my local Circuit City has a good supply of Sirius and XM . With new car sales falling , Sirius and XM can't give up on retail altogether . They need to get their retail act cleaned up .
It obvious that Anonymous Coward is a mis-informed idiot, Wal-mart does not have display models for sat radio.
Interesting comments from everyone.
For those that do not understand the retail world, XM's Wal-Mart team covered a HUGE number of stores per rep. (It isn't like going to Sam's Club and having the cell-phone kiosk being manned by a cellphone employee.) A retail sales rep has a tough job because they depend on things out of their control to function properly.
#1 Rule-The Account Manager MUST have a great relationship with the buying office.
The manufacturer (note: XM is NOT a radio manufacturer) MUST have a supply ready to meet demands.
Store associates MUST care enough to monitor shelf stock and learn the products.
The mismanagement of an account like Wal-Mart starts from the top! "No Rose Colored Glasses" is correct. If a player doesn't perform, replace the player. If the team doesn't perform, replace the coaching staff.
@Concerned Associate
Some WAl-Marts do have working demo radios on display, I know of a couple in the DC area that have them soooooooooo know your facts before speaking.
ignorance is bliss,,, DC area???? you sound like XM upper management mole. Hope your package is better than the one for you low level WM reps.
Information from XM's corporate info page:
Fire the EVP and CMO, Vernon Irvin;
Fire EVP of Retail Aftermarket Distribution, Dan Murphy
What are these two doing to add value to the organization? Retail category and market share are slipping. Maybe it's time for a major shake up.
Suggestions, anyone?
To Good Riddance:
I'm not part of the WM team you moron, but maybe I will get a job there in the pet food section. Just make sure you stop by and introduce yourself the next time you and your hillrod family stops in for some peanut butter or because there is a sale on family teeth!! Yeah, you know what I'm talking about!!! Let me ask you, do you post during your after school program or does the special ed school not let you use the computer??? Go drink some more cool-aid dummy!!
For everyone else:
The WM cuts we obviously a cost cutting measure, but the WM team didn't even work for XM....they were contracted out to a 3rd party labor company, read the article. The fact of the matter is that the contract was up and the ROI of that program wasn't worth renewing!!! Any company would do the same thing....especially one who is expecting a merger to be blocked!!
Thanks for the info Watchdog. Murphy was a slacker and an underachiever at Sony, it's good to see that his track record remains consistant. When the merger goes thru, I expect Mel to right the ship Murphy nearly sank.
What's to say this merger will save satrads bony ass anyway... this merger and all the talk of "it's passing, it's not passing" is killing the market for this technology anyway.. it will take a while for these two, or one, companies to recover either way... what walmart or circuit city does with their displays is irrelevant, they screwed the pooch when they announced this merger a year ago.. what's to say they won't try to merge with some other company after this fiasco is finished... I've been in walmarts where the radio displays are working and I've even been in walmarts where you can find the radios, and some where if I ask where these type of radios are they send me to the meat section... the new direction XM is taking in their sales is they could care less either way, if the merger passes great, they've unloaded a dead goat.. if the merger doesn't pass they go bankrupt and someone else will get the dead goat.. either way it's a dead goat...
@ Power for the People
Actually I have never had the "privelage" to be employed by the company nor do I want to be. I have simply lived in the "DC AREA" for 23 years and several of the wal mart stores I have been in do have an XM display set up. Yet another one that needs to get his facts straight before he speaks, common occurance around here it seems.
ignorance is bliss-looks like you need some help spelling too. Take some of your XM cash and go back to 3rd grade (again). I stand by my facts you XM tool.
Wm
i used to work for the xm walmart group and got out when the gettin was good
the drunk spastic bitch in charge ran the program in the ground
i hate that she has a job and my old friends are losing theres
id like to slap her in her face
thats a cat fight she wouldnt win even with murphy covering her
to my old friends and ram
hang in
there better jobs working for people who know what there doing
love & kisses to you
some of you know who this is
call me
@ Power for the People;
You couldn't be more wrong about me. My job is right here at my house taking care of my 3 kids, My husband is the one that makes all the money and I assure you that it is not with XM. So you can stand by your facts all you want but I think we see who the real "tool" is