Posted on 04/20/2007 12:05:23 PM PDT by 2ndDivisionVet
Declining growth, increasing competition, and not an easy fix in sight.
John E. Fleming, Wal-Mart's newly appointed chief merchandising officer, is staring hard at a display of $14 women's T-shirts in a Supercenter a few miles from the retailer's Bentonville (Ark.) headquarters. The bright-hued stretch T's carry Wal-Mart's own George label and are of a quality and stylishness not commonly associated with America's über-discounter. What vexes Fleming is that numerous sizes are out of stock in about half of the 12 colors, including frozen kiwi and black soot.
Fleming may be America's most powerful merchant, but a timely solution is beyond him even so. Wal-Mart failed to order enough of these China-made T-shirts last year, and so they and other George-brand basics will remain in short supply in most of its 3,443 U.S. stores until 2007's second half, depriving the retailer of tens of millions of dollars a week it sorely needs. "The issue with apparel is long lead times," says the quietly intense Fleming, who spent 20 years at Target Corp. (TGT ) before joining Wal-Mart Stores Inc. (WMT ) "We will get it fixed."
For nearly five decades, Wal-Mart's signature "everyday low prices" and their enabler—low costs—defined not only its business model but also the distinctive personality of this proud, insular company that emerged from the Ozarks backwoods to dominate retailing. Over the past year and a half, though, Wal-Mart's growth formula has stopped working. In 2006 its U.S. division eked out a 1.9% gain in same-store sales—its worst performance ever—and this year has begun no better. By this key measure, such competitors as Target, Costco (COST ), Kroger (KR ), Safeway (SWY ), Walgreen's (WAG ), CVS, and Best Buy (BBY ) now are all growing two to five times faster than Wal-Mart.
(Excerpt) Read more at businessweek.com ...
These retailers better watch out - the crazy libs will be coming after them before too long.
The libs have nothing to worry about Walmart the whole time. Competition is a beautiful thing.
Amen to that and Wal-Mart has a habit of addressing problems and solving them.
Poor stocking and failure to reorder stuff is a biggie at my Wal-mart. Empty spaces where something you want should be.
But I’m not worried about them either. They’ll survive or something better will take their place.
Unless, of course, the government takes over private industry.
Sure sounds like they're doomed!
For many of us it is the only and or the cheapest source of fabric. The fabric department in my super Wal-Mart in Millington, TN has been eliminated, when I called cooperate their HQ I was told they are "studying it", well they studied it into non-existence.
The next source of fabric while only 10 minutes away is in a high crime area and at least $2.00 a yard more for the same material. But for others in more rural areas the next source is an hour away or more.
Check out the on line petition and comments there are 33,000 signatures. Please call 1-800-Wal-Mart and complain about the closing of the fabric departments. It has been restored in a few stores and some of the eliminations have been put on hold according to the lady who is head of the 'former' department in my little berg.
You may find my analysis of Wal-Mart’s “Secret Solution” interesting:
http://www.customersandcapital.com/ Check it out.
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