Posted on 03/23/2005 10:47:44 AM PST by kellynla
It sounds counterintuitive. But a new report says the secret to retailers' survival in a Wal-Mart world isn't about attempting to outrun the 800-pound retail gorilla but about the ability to maneuver around it, according to a recent study entitled "Outsmarting Wal-Mart" from the global retail practice unit of New York-based consulting firm Bain & Company.
So who's thriving in a Wal-Mart world?
The report's authors, Darrell Rigby and Dan Haas, picked Best Buy (Research) in consumer electronics; Walgreen (Research) in pharmacy products; Wal-Mart's arch-rival Target (Research) in the discount arena; PetsMart (Research) in pet supplies; and privately held regional chains HEB and Publix among grocers.
The CEO of one successful Wal-Mart competitor was quoted in the report as describing his strategy as the following: "It's like the two outdoorsmen who wake to find a raging bear at their campsite," he said. "One camper slowly stands and backs away; the other starts to lace up his sneakers. 'You can't outrun the bear!' whispers the first. 'I don't have to,' replied the second. 'I just have to outrun you!'"
Competing with Wal-Mart, the world's largest retailer, on price alone is futile. Wal-Mart's mantra of "everyday low prices" may as well be written in stone.
That's how it pounded its rivals and built it $288 billion retail empire -- setting prices not just below the competition but close to rock bottom while still making a profit.
"Wal-Mart clearly wins on price, and to a lesser degree, selection -- but nowhere else," the report said. "Price isn't everything."
(Excerpt) Read more at money.cnn.com ...
As a person who avoids Walmart like the plague (lousy service, crappy merchandise, dirty stores) I also think the Anti-Walmart Jihad is ridiculous.
Yeah, everyone I know prefers to shop at Target because they usually have better help, shorter waits at the register, and a better selection of nicer products. Walmart is only for the times you can't find anywhere else or you need one big item that you know will be cheaper there.
I live in the Houston area. We have the HEB grocery stores, that were mentioned in the article. They are great, good services, good prices. They routinely beat the great walmart of china on meat prices and quality. I do occasionally by packaged goods at wallyworld but Heb has better selection and service.
Agree all the way around.
"Yeah, everyone I know prefers to shop at Target...."
I quit shopping Target the day they gave the Salvation Army the heave-ho. Haven't been back.
I like shopping at Wal-Mart. Why pay more for things you need on a regular basis such as soap, detergent, razor blades, etc. When my kids were babies I saved a bundle on diapers and formula.
If I want to shop cheap, I'll hit Target or Costco.
I will go to Wal-Mart for certain items, on which their prices are so much lower to make it worthwhile.
But, for most things, I prefer to go somewhere where there is good service and atmosphere.
I recently started shopping at Safeway for the first time in many years. They have it figured out. There is no way they can compete on price, so they have spent the past decade making their service excellent (at least at the store I went to).
The other grocery chains around here have lackluster service, and their prices are not low enough to compete with Wal-Mart. They won't last long when Wal-Mart gets their grocery operation going strong.
You can't beat Wal-Mart on price...it is in other areas where they can be beaten easily.
Maybe you have nicer Walmarts in your area than many of us. I have been to a couple of nicer newer Walmarts that I would shop at again if I lived in the town. But for the most part, Targets are in better shape. At every Walmart near me, the lines are always long and slow, you can't expect to get much help if you ask a question or can't find something, and if you need anything besides standard stuff (like if you need to buy a gift for someone) you don't have a good selection of decent quality stuff. The prices at Target are about the same or sometimes even less on certain items, and you can find much nicer things if you're shopping for more than toiletries and school supplies. (I do go to Walmart sometimes if all I need are toiletries and school supplies!)
Obviously, the beauty of this is that we have the choice and can shop where we want given what are looking for. Walmart is a huge force in the retail world, but they are not the be all and end all.
The National Labor Relations Board has ruled that if a company allows any solicitors on their site, they must permit labor organizers free access as well. Target (which, like Wal-Mart, is under constant threat from the union vultures) realized that the unions could argue that since Target permits Salvation Army bellringers to solicit charitable donations, that therefore labor organizers must be permitted to hang out at the stores as well.
Consequently, Target decided they had to prohibit the bellringers. Unfortunately, for PR reasons, Target couldn't really make an announcement about why.
As stated above, Target lost my business when they couldn't even muster the character to stand up for the Salvation Army. That was beyond the pale IMO.
Consider yourself outed, Senator!
Target sells better quality furniture and clothes than WalMart. But I'd have to say really there are two reasons that we shop at Target much more than Walmart 1)Target is more convenient to us. and 2) Our Walmart is filthy.
Not an acceptable excuse to stiff the Salvation Army. At the very least, if they were sincere and that was the reason, they should make a donation to the Salvation Army about equal to what their anti-union stand cost the Salvation Army.
Without a doubt, that's a reason. Yet somehow, Walmart is able to weather the firestorm. Along with Sears. And Meijers. And K-Mart. And Best Buy. And ToysR'Us. And Kroger. And ...
I agree, no bell ringers, no TXBSAFH dollars spent at target.
Good detective work there Ern....only one flaw with your theory. I doubt that the swimmer even knows what Walmart is, much has ever been in one. Reason?, they don't have Chivas on discount.
There was a good case made that the reason Target tossed the Salvation Army was because they did a deal with a different charity (I won't mention the name) that demanded exclusivity. Since that deal involved gift cards there was the potential for Target to make money off the breakage (gift cards or remaining value that are not redeemed). Subsequently my wife and stopped shopping there.
They really should make a statement of some type because if it is all about keeping union goons off the premises then we'd be happy to go back.
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