Customers Weigh in on Wal-Mart’s Marketside Stores
This video from the Financial Times takes a look at Wal-Mart’s new small-format Marketside stores, and their close competitor Tesco’s Fresh & Easy. The analysis of the two stores is interesting: Marketside looks more polished, whereas Fresh & Easy focuses on house-brand bargains. But the most interesting - and perhaps saddest - part of the video is hearing customers’ explanations of why they like the new small format stores:
“It’s kinda like a small grocery store,” one man says. “I kinda like the idea of the local markets instead of great big stores you’ve got eight million people in.”
That is, customers are attracted to these markets because they’re like the local grocery stores Wal-Mart so frequently puts out of business. After years of flocking to Supercenters, these consumers have realized the value of shopping close to home, though still seem unwilling to support real locally-owned businesses. Marketside has all the appeal of a local store with none of the benefits: money spent there doesn’t stay in the community and its owners have no incentive to treat employees well. Wal-Mart seems to be capitalizing on the very holes its own business model has left in the retail landscape.
Big box stores go small [Financial Times]
Posted by Alex Goldschmidt on Tuesday, October 07 | 2 comments | Permalink
Wal-Mart’s Shoppers Less Loyal Than Other Retailers’, Study Says
A story out today from Advertising Age has an in-depth break down of Wal-Mart’s current business and marketing strategy. Most retailers are scrambling to stay afloat as the economy declines, but in the last month Wal-Mart has seen rises in both its stock price and profits.
Shoppers are trading down, and Wal-Mart is as low as they can go. A bad economy has always been good for Wal-Mart, and today’s recession-like atmosphere is no different. Wal-Mart’s execs claim the recent boost in sales is due to a “strategic three-year plan,” but most analysts agree: when the going gets tough, the tough go to Wal-Mart.
“But,” says one analyst quoted in the article, “there is a chink in the armor of Wal-Mart, which is these customers are not saying they necessarily feel loyalty.” Though more people are shopping at the low-price retailer, they’re not likely to stay. Wal-Mart’s only advantage is its prices: customer service, product quality and company ethics are all secondary objectives, and shoppers know that. Brand loyalty might not be a problem for Wal-Mart now, but once the economy improves the company could face the consequences for putting low prices above all else.
Wal-Mart Grinning Big Through the Tough Times [Advertising Age]
Looking for a silver lining in the economy? It’s shining brightly from Bentonville, Ark.
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Posted by Alex Goldschmidt on Monday, October 06 | 3 comments | Permalink
Friday Blog Round-Up: Christmas in October Edition
SANTA TO WORK LONGER HOURS WITHOUT OVERTIME THIS YEAR
Wal-Mart announced this week that it will start cutting toy prices almost three months before Christmas. To which Santa Claus replied, “Seriously?”
Wal-Mart starts the discounting early this year [BloggingStocks]
According to The Wall Street Journal, “Wal-Mart Stores, Inc. said it will cut prices on some of the most popular toys and speed up the opening of Christmas shops in its stores nationwide as it tries to lure budget-conscious shoppers and jump start its biggest selling season.”
Wal-Mart: Coal In The Retail Industry’s Stocking [24/7 Wall St.]
Wal-Mart’s action is a typical method for burying the competition. It can afford almost endless inventory build-ups for the busy shopping season. It can pull in the very modest amount that the consumer has to spend and leave other retailers with scraps off the table.
In which Walmart explains why we’re all doomed. [Writing on the Wal]
Obviously, I’m a masochist. I actually read Walmart’s press release on its early rollback of toy prices. While the Play-Doh Ice Cream Shop would be tempting if it weren’t Walmart we’re talking about here, I was much more struck by the survey results at the bottom of the document. Most notably:
Sixty-one percent of Americans do not plan on making cut-backs on how much they spend this Christmas season.
*Those who do plan on making cut-backs, plan on cutting back $50 or less.
Don’t you think that result seems just a tad self-interested? Why is that stat there if not to convince people to spend more whether they can afford to or not? I suspect Walmart has declared Christmas early because they’re afraid nobody will have any money left in December.
After the jump, Wal-Mart shuts down DRM music downloads, managers make up their own rules and 210,000 toasters get recalled.
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Posted by Alex Goldschmidt on Friday, October 03 | 8 comments | Permalink
Friday Blog Round-Up: Talk Like a Pirate Edition
WAL-MART EARNS BUCKETS OF MONEY
In case you weren’t aware.
Winners and Losers [Floyd Norris on the New York Times]
As the stock market goes back to gyrating –the Dow has been up more than 100 points, and down more than 200, during the first two hours — here, courtesy of Howard Silverblatt of Standard & Poor’s, are the Lucky 13 and the Unlucky 13 for this year.
Lucky 13:
1. WAL-MART +$52.1 billion
MAN IT FEELS GOOD TO BE A WALTON
The Walton family is worth over $100 billion. Discuss.
The Waltons: SUPER DUPER RICH!!! [WakeUpWalMart.com Blog]
Of course there is nothing wrong with this family being so absurdly wealthy. No, our objection is that they make their profits on the backs of their workers by mistreating them and paying them poverty level wages. Contrasting a typical Wal-Mart workers wage with the Walton families wealth is mind boggling, and more than a little depressing. For example, it would take someone making $20,000 a year (which is a relatively high wage for your typical Wal-Mart cashier) on million years to net the amount of money one Walton sibling is worth.
If I Were A Rich Man… {Smart Profits Blog]
Warren Buffett with 50 billion takes second while Lawrence Ellison comes in at third with significantly less: a mere 27. Then fourth, fifth, sixth and… sixth… are all Waltons, somehow or another tied to WalMart founder Sam Walton. Jim Walton possesses a cool 23.4 billion, his brother S. Robson Walton has slightly less at 23.3, while their sister Alice Walton and sister-in-law Christy Walton tie at 23.2.
Walton Family Dots 10 Richest Americans List [Family Store Online]
Jim Walton, son of Wal-Mart Stores Inc. founder Sam Walton, reclaimed a leading spot this year at No. 4 with a $23.4 billion fortune after falling off last year. ... Eldest brother Robson Walton, 64, comes in a close second with $23.3 billion, landing him in the No. 5 spot. He is chairman of Wal-Mart. WHAT’S IN **YOUR** WALLET?
Forbes 400 richest out [Writing on the Wal]
The Walton’s, still the friends of downtrodden shoppers everywhere…
Forbes 400: List of the Richest Americans [Young, Famous and Fashionable]
The Walton family are all stinkin rich, controlling abt 40% of the worlds largest retailer,
illegal child labor marti meanworkers can’t unionize martwoops.. i mean Walmart, with abt $23B each.
After the jump, shopping for groceries, reasons not to shop at Walmart, and sure signs the economy is REALLY bad.
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Posted by Alex Goldschmidt on Friday, September 19 | 45 comments | Permalink
Friday Blog Round Up: People’s History Edition
MEXICAN SUPREME COURT SLAMS WAL-MART’S LABOR PRACTICES
Mexico’s Supreme Court rules against Wal-Mart’s labor practices [AlterDestiny]
Mexico’s Supreme Court has been making some really interesting decisions lately. Last week they upheld Mexico City’s law to provide access to abortion. Yesterday, they ruled in favor of a Wal-Mart employee in Mexico who brought a case against the corporation for its practice of providing store coupons in place of a portion of one’s salary. (English story here, Spanish here). The court likened Wal-Mart’s practice to the old company stores that operated under the dictatorship of Porfirio Diaz (1876-1910), that were subsequently outlawed with the 1917 constitution.
Walmart Slammed by Mexican Court [Politics and Hypocrisy]
Now to be fair, I am far from knowledgeable on the working conditions in Mexico. I do know that they must be bad enough to cause 1000’s of Mexicans to cross our borders yearly in search of a better life.
So knowing that, how bad must Walmart be in Mexico if their Supreme Court is criticizing their labor practices? I’ll give you a hint, an 1890’s dictator and store only salary vouchers are mentioned.
I wonder if they tell their employees how to vote down there as well?
After the jump, Wal-Mart’s new in-store TV network, the company’s outreach to mommy bloggers and why you should love the REALLY free market.
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Posted by Alex Goldschmidt on Friday, September 05 | 33 comments | Permalink
What’s Good for the Middle Class is Good For Wal-Mart
Last month, the Wall Street Journal exposed the fact that Wal-Mart was telling its employees to vote against the Democrats in November - fearful that a Democrat in the White House would pass legislation making it easier for workers to unionize. Today, an op-ed by Congressman Rahm Emanuel in the Wall Street Journal suggests that Wal-Mart’s potentially illegal activities may even be misguided. Emanuel suggests that Wal-Mart is ignoring the economic facts in advocating for Republicans, and has actually fared better under a Democratic administration.
The piece explains that the American middle class - Wal-Mart’s core demographic - has always done better under Democrat administrations. Supporting measures that bolster the working class - such as the Employee Free Choice Act, which the company warned against - would mean better living for Wal-Mart’s employees AND its shareholders. Such support might mean thinking outside the box for this notoriously Republican company, but Wal-Mart stands only to gain from such innovations.
Opinion: Wal-Mart Thrives When Democrats Are in Charge [Wall Street Journal]
Last month, reports surfaced indicating that Wal-Mart managers and department heads were holding meetings with associates and warning of dire consequences if Barack Obama is elected president.
Wal-Mart may have its political reasons to vote Republican, but if economics are the criteria, Wal-Mart should be rooting for a Democratic administration. Instead, the company whose television ads encourage you to save money and live better is ignoring the economic facts and backing Republican economic policies that have resulted in families losing money and living worse.
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Posted by Media Team on Friday, September 05 | 34 comments | Permalink
Wal-Mart draws a line between the company and its stores
A story out today from the Arkansas Democrat-Gazette helps to clear up some of the questions about Wal-Mart’s recent logo change. The article explains that Wal-Mart The Company will continue to use the current, hyphenated form of the logo but that Walmart The Store will use the fancy new non-hyphenated version. As if that weren’t confusing enough, the article explains that the ever popular “squiggly” will remain in the Wal-Mart cheer. Yes, questions of how to spell Wal-Mart’s name will now involve a lengthy existentialist examination.
Exactly why Wal-Mart feels the need to make this distinction - between “the company” and its stores - remains unclear. The company wanted a new look for its stores, but changing every instance of its logo might have proven too complicated. Wal-Mart is, after all, the world’s largest company. But the distinction also plays in to an issue we raised yesterday - Wal-Mart The Company is beginning to distance itself from its stores. The company’s new Marketside shops bear no mention of their Bentonville parent, and perhaps the hypen/no-hypen distinction plays in to that. Does Wal-Mart The Company exist separate from its stores? Can it ever?
‘Walmart’ new, but store’s familiar [Arkansas Democrat-Gazette]
Wal-Mart or Walmart ? That depends, the company says. With the June 30 announcement of its new, nonhyphenated store logo, “Walmart” started showing up in some of Wal-Mart Stores Inc. ’s news releases and other statements and has been appearing in its printed advertising and in-store signs since then.
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Posted by Alex Goldschmidt on Thursday, August 28 | 109 comments | Permalink
Wal-Mart: Always Low Wages, Always
Earlier today Wal-Mart, the largest company in the world by revenue, announced its earnings figures for the second fiscal quarter of 2008. Between April and June, the company earned a whopping $3.45 billion, and sold an almost unfathomable $101.6 billion worth of merchandise. Prospering as American consumers are forced to downgrade, Wal-Mart has been enjoying a rare window of prosperity in a declining economy.
The Walton family, which holds a majority share of the company’s stock, stand to profit greatly from Wal-Mart’s sales. The company’s stock rose $17 a share between November 2007 to June 2008, and with 43% of the company’s stock in its possession, this means the Walton family made around $29 billion off the stock price increase alone. Also standing to benefit is CEO Lee Scott, who earned a total of $59.8 million last year - 1646 times what an average Wal-Mart hourly employee earns annually.
Despite the company’s massive profits, Wal-Mart’s wages remain shamefully low. In fact, when accounting for inflation, wages for Wal-Mart’s hourly employees has actually fallen since 2004. Our newest fact sheet - “Wal-Mart: Low Wages, Always” - provides more details about the company’s efforts to keep wages low.
Wal-Mart depends on low wages to keep profits high, and the company is willing to go to extreme lengths to keep it that way. Wal-Mart’s recent anti-union propagandizing is just one such example, but it’s part of a larger, cohesive company policy to keep benefits poor and wages low. Learn more in our fact sheet: click here to download “Wal-Mart: Low Wages, Always.”
Posted by Research Team on Thursday, August 14 | 36 comments | Permalink
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