Wal-Mart’s Achilles’ Heel

This story from Utne Reader explains why big box retailers won’t take over the economy - and it’s NOT because their prices are too low. Rather, the author explains, people’s tastes are too varied for any big box store to truly win the retail competition. The story cites Wal-Mart’s foray in Germany as one example of this weakness:

The inability of many big-box retailers to adapt to local tastes and their failure to anticipate technological market shifts has been their Achilles heel. When Wal-Mart was forced to shutter its German stores, a mystified company spokeswoman told a reporter, “We thought everyone around the world loved Wal-Mart.” (The International Herald Tribune quoted a baffled Wal-Mart shopper in South Korea, where the company has also abandoned operations, wondering, “Why would you buy a box of shampoo bottles?”) The chain had made the mistake of assuming that full-spectrum retail dominance is achieved by virtue of size alone, without regard to cultural and regional difference.

Author Michael C. Moynihan rightly points out that the life and death cycles of big retail chains have been evolving for over 100 years. As major retailers come and go, so too wane opposition groups and citizens brigades.

[S]tores like Wal-Mart will always be with us, just as they were when they were called Woolworth’s or A&P. If Sam Walton’s creation disappears, it will doubtless be replaced by a more clever, more modern adaptation of the business model he popularized.

Moynihan focuses on the aesthetic and feeling-based reasons for shopping locally, but fails to examine the potential national chains have for changing the dynamics of U.S. working life. Every time Woolworth’s or GM improved their business practices, the entire U.S. economy was lifted towards better working conditions and better pay. As Moynihan points out, Wal-Mart is only the latest in a long line of national retail chains, and like its predecessors it has the ability to change the economy for the better.

Posted by Alex Goldschmidt on Friday, May 09, 2008

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COMMENTS

"[S]tores like Wal-Mart will always be with us, just as they were when they were called Woolworth’s or A&P. If Sam Walton’s creation disappears, it will doubtless be replaced by a more clever, more modern adaptation of the business model he popularized.”

From Revelation 13

16And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:

17And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.

Imagine a Sam Walton and Adolf Hitler business merger into a all government operation.

SanDiegoView in
Friday, May 09 at 05:41 PM

pretty rich flavor. a young wasn’t at competing

glassjhonlet in London
Friday, May 09 at 07:03 PM

think I know we just I grew we house you yes We need places the tree, my university stay right

wehouseyouye in London
Friday, May 09 at 07:03 PM

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juicywe in London
Friday, May 09 at 07:04 PM

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minorusa in London
Friday, May 09 at 07:04 PM

rich flavor. The hollow a bit of tree neighborhood decay year well I noticed crashing down

dogkeyheadye in London
Friday, May 09 at 07:04 PM

I like the last 5 posts.... they are about as literate as the first one.

mary in
Saturday, May 10 at 06:21 AM

So, “mary”. Like RDS and vantress you think of yourself as a person of literary and intellectual substance. What does your therapist think about that?

WalMart/Edelman- We hire internet fakes and frauds.

SanDiegoView in
Saturday, May 10 at 08:08 AM

Rather, the author explains, people’s tastes are too varied for any big box store to truly win the retail competition.

The inverse of which implies that conformity favors Wal-Mart. I guess there’s nothing wrong with that if you choose to conform.

We can all dress the same (clothes from Wal-Mart), decorate our homes the same (decor from Wal-Mart) and eat the same food (groceries from Wal-Mart).

Corporation: An ingenious device for obtaining profit without individual responsibility. ~ Ambrose Bierce

Wal-Mart is only the latest in a long line of national retail chains, and like its predecessors it has the ability to change the economy for the better.

Ken V in Texas
Saturday, May 10 at 10:57 AM

I Don’t Know, Ken!

“We can all dress the same (clothes from Wal-Mart)...”

I can’t speak for you Ken, but I don’t look good in khaki or camouflage.

“...decorate our homes the same (decor from Wal-Mart)...”

I made a vow to eliminate, if not severely limit the amount of useless plastic crap I allow in my house.

“...eat the same food (groceries from Wal-Mart).

How many different ways can you eat macaroni and cheese?

ScrewedbyWal-Mart in Anytown, America
Saturday, May 10 at 01:08 PM

You really don’t get it. This goes hand in hand with “Multi-Culturalsim”. Once you’ve “broken down the barriers” that divide people (which is actually what gives us our strength) you can sell whatever you want to the sheeple and they’ll buy it. Slowly, they are driving our individuality towards a more homogenized outlook on life. Eventually, if this is allowed to continue, there will be only one flavor -VANILLA!

Vinny in Chicago, IL
Saturday, May 10 at 08:42 PM

“a more homogenized outlook”

By this Vinny, do you mean that every town in America with a population of 20,000 or more, will have a supermall with a Wal-Mart Supercenter, one Home Depot or Lowes, either a Kohl’s or Target, with a Taco Bell and a McDonald’s on the ends?

Hey...VANILLA needs a little “topping” so throw in a Goodwill Store or a Salvation Army Family Store to complete the “mix”.  Afterall, people need a place to recycle their useless plastic crap before they can head back to Wal-Mart and buy some more!

ScrewedbyWal-Mart in Anytown, America
Sunday, May 11 at 05:48 AM

...people need a place to recycle their useless plastic crap...

As the price of petroleum goes up plastic may become very expensive. What a refreshing change. Instead of cheap plastic crap. Wal-Mart can sell us expensive plastic crap.

I can hardly wait!

Ken V in Texas
Sunday, May 11 at 07:44 PM

target,home depot and your favorite stores ken already sell expensive plastic crap.why are you not bitching and moaning about that?you are a big time hypocrit like all walmart haters are because we never hear a dam thing from them when their favorite stores do the same things they bitch at walmart for.

m att hew vantress in gresham,oregon
Monday, May 12 at 05:02 AM

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