Sunday, February 6, 2011
Wal-Mart, humbled king of retail, plots rebound
Three years ago, Wal-Mart overshadowed other retail shops such as Costco, Target and various dollar stores. Customers praised Wal-Marts low prices and affordability. During the beginning of the Great Recession (late 2007). Wal-Mart was at its peak. After a remodel and renovation, customers were pleased that the retail store was cleaner and more organized. This was only one of the factors leading to its success. At a time when people need to watch their budget, more went to Wal-Mart because of its guaranteed low prices. The store sold brand name merchandise for a smaller price than fellow retailers. More affluent shoppers during the recession started shopping at Wal-Mart instead of the pricier places. However starting mid 2009, Wal-Mart started losing its competitive edge. Target started their 5% discount card, which Wal-Mart did not match up to. Dollar stores sprung up in more neighborhoods with very reasonable prices. Costco started taking in designer and premium merchandise (from Michael Kors to premium beef). During its remodel, Wal-Mart got rid of thousands of products. 20% of the groceries were reduced. The large retail store started to stray from its "everyday low prices" slogan. Customers became more wary and starting looking at newer places to shop at.
Subscribe to:
Post Comments (Atom)
3 comments:
Although this is a loss for Wal-Mart, I think its healthy for the American economy to have competition between these large corporations. It ensures that no company becomes too powerful as to hold a monopoly. Furthermore, I think the public will benefit from stores such as Costco and Target competing with Wal-Mart because it forces them to lower their prices in order to attract customers. The general public is then able to buy more, which will encourage spending and increase the economy.
Wal-Mart will always be there, both as a store that has cheap stuff, and a store that sells most everything. As far as I'm concerned, i don't see Wal-Mart disappearing anytime soon. Although I do think its good that people find themselves drawn to stores like Target and Costco, and Tony has a point when he says that competition is healthy for the American economy. Even if Wal-Mart has suffered some short term losses, i dont think this will be the end of a giant.
Plus...there's like no walmart's near us...so I sometimes forget about it...since Target and Costco are the places to go around here. I think it's great to get a bargain at any store...but it makes me wonder how well (or not well) the workers at those stores are getting paid..."prices go down...(caugh caugh) so does everyone's salaries (caugh caugh)"
Post a Comment