NEW YORK – The Wall Street Journal reports that Walmart is “spending heavily” to win back customers who have strayed toward the competition, such as Amazon and Kroger. 

The news source writes that over the past year, Walmart has concentrated on improving operations through the basics: in-stocks and operational efficiencies. The company also increased the starting pay for 500,000 of its 1.2 million U.S. store employees.

On Thursday morning the company reported softer-than-expected sales growth in its U.S. business during the holiday quarter and cut its sales outlook for the year, notes the news source. 

To get back on track, Walmart is reportedly putting $2.7 billion toward increasing store employee wages, $2 billion on e-commerce and billions into lowering prices in about 4,600 U.S. stores.

The retailer is also investing in fresh produce, writes the Journal, “a section of the store where [Walmart] has floundered but is a key determinant for where consumers choose to shop.”

Walmart is planning to hire hundreds of “fresh operations managers” over the next three years to train staff on how to best present and maintain fresh produce. So far the company has hired 30 such managers, who will oversee 10 stores each. “We believe it’s the right investment for our customers and look forward to expanding the program,” a company spokesman told the news source about the emphasis on fresh produce.

Charles Redfield, Walmart executive vice president of food, said at a supplier conference that the company is opening a food sensory lab in May to bring “a real food culture” to Walmart stores, according to the Journal.