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Wal-Mart: Moving Beyond Low Prices
Seeking Alpha ^ | 9/15/08 | Rafael Grillo

Posted on 09/15/2008 10:38:14 PM PDT by Santa Fe_Conservative

In the current economic situation, it was to be expected for Wal-Mart (WMT) to thrive. It has always offered the lowest prices in groceries and other basic goods. Yet, in the good times, many consumers would refuse to shop at Wal-Mart for issues ranging from convenience all the way to, very simply, status. In the face of rising prices and economic uncertainty, those issues are mostly gone for a good chunk of the population. Consumers will do whatever is necessary to stretch their paychecks. Consequently, Wal-Mart has been able to report sales growth quarter after quarter for over a year now. With it, we've also seen its stock price increase nicely, from the low 40's back in October 2007 to $63 last week.

Now, this growth has not happened just out of inertia. Wal-Mart has been very conscious of the opportunity the economic downturn represented for the company. As a result, it very purposefully refocused its marketing efforts to attract a wider range for middle- and upper-middle-class embattled consumers by positioning itself as the best alternative to preserve the lifestyle they are clinging to.

Wal-Mart's campaign "Save money. Live better" is an excellent effort in that direction. In the past, Wal-Mart communication focus had always been around its low prices, under their "Always low prices. Always" creative platform. Their target audience was comprised fundamentally by cost-conscious, low-income segments. Even though this was the promise that made it a retail giant, during the years of economic surge this approach was actually affecting Wal-Mart negatively.

(Excerpt) Read more at seekingalpha.com ...


TOPICS: Business/Economy
KEYWORDS: cheapgoods; economy; walmart
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Never been a fan of Wal-Mart but all of this certainly true.
1 posted on 09/15/2008 10:38:14 PM PDT by Santa Fe_Conservative
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To: Santa Fe_Conservative

That’s a good website. First time there for me.

Thanks!


2 posted on 09/15/2008 10:58:29 PM PDT by ConservativeMind (What's "Price Gouging"? Should government force us to sell to the 15th highest bidder on eBay?)
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To: Santa Fe_Conservative

Philosophically, the lefties hate Wal-Mart because it makes everyday life easier and more affordable to millions, and they think the masses should be struggling daily for the basics (”decreased consumption”).

Practically, they hate Wal-Mart because it lets poor and middle class people afford to live near them, versus when the only shop in town is Whole Foods with its organic $7 milk.


3 posted on 09/15/2008 11:13:14 PM PDT by BobbyT
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To: All
” Messy stores, out-of-stocks, apathetic, nowhere-to-be-seen and unhelpful associates, low-quality merchandise and unacceptable long lines at the few registers that are open at any given time still plague the experience at Wal-Mart. At Wal-Mart, you don't enjoy the experience: you endure it”

The Wal-Mart I go too has large quanties of inventory, helpful associates and never has long lines. As for Low Quality... most of it is acceptable, not cheap but acceptable level of quality. But Portland, OR is not Wal-Mart friendly.. the one down on 82nd is crowded and has less inventory than the ones in Woodburn and Clackmas.

The poster Obviously has it in for Wal-Mart before he even walks through the door.

4 posted on 09/15/2008 11:54:55 PM PDT by Kitanis
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To: BobbyT

They also hate it because they are the biggest non-union employer in the U.S., I have read.


5 posted on 09/15/2008 11:56:41 PM PDT by Marie2 (Everything the left does has the effect and intent of destroying the traditional family.)
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To: Kitanis

Those in Salem are well stocked too.


6 posted on 09/15/2008 11:59:16 PM PDT by Salvation ( †With God all things are possible.†)
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To: Salvation

You should check out the one in around Bentonville Arkansas. They are huge and have very large selections. Of course that is home base.


7 posted on 09/16/2008 12:20:20 AM PDT by fella (.He that followeth after vain persons shall have poverty enough." Pv.28:19')
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To: Kitanis

You are fortunate—I use to love Wal-Mart, but the Wal-Mart here in Santa Fe and the ones in Albquerque are such disasters such as what he describes coupled with the fact so many of the employees around here speak Spanish only.


8 posted on 09/16/2008 1:01:32 AM PDT by Santa Fe_Conservative (The RINOs think that they have won but we shall see who has the last laugh in '08...)
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To: Santa Fe_Conservative

Just got back from vacation in Santa Fe. The store IS a mess. Long lines at checkout, but the staff there was very helpful to me. VERY crowded-I guess nobody goes there anymore-it’s too crowded!


9 posted on 09/16/2008 3:26:46 AM PDT by mozarky2 (Ya never stand so tall as when ya stoop to stomp a statist!)
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To: Santa Fe_Conservative

I’ve never been a huge Wal-Mart fan but found myself forced to shop there when most other stores had gone under in my area. Fortunately, I recently discovered Aldi’s where milk is $1.99 a gallon every day and their other prices are equally reasonable. You must either provide your own bags or purchase bags (plastic or paper) at the store, and bag your own groceries, but the savings are well worth the effort. I learned that Aldi’s is world-wide and would encourage anyone interested in saving money to do a quick search at www.aldi.com to see if any stores are available in their area. I can proudly say that I haven’t seen the inside of a Wal-Mart store in more than 3 months now!


10 posted on 09/16/2008 3:52:25 AM PDT by steppinhi (God Bless & Protect Our Troops and their families!)
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To: Santa Fe_Conservative
Within the last six months, I purchased Wal*Mart at $53 a share. Yesterday it closed at $61.63.

It's a good stock.

sw

11 posted on 09/16/2008 4:04:54 AM PDT by spectre (Spectre's wife (Is He the one?)
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To: steppinhi

We’re lucky. We have a Super Walmart 15 miles from here. My inlaws say it’s the cleanest, most well maintained walmart they’ve ever seen. Across the street we have an Aldi’s, and down the street from there is a Hyvee store.

My impressions of these three places used to be:
a) Walmart is cheap
b) Aldi’s sells crap
c) Hyvee is expensive

None of that is true.
The truth is, we shop at Walmart for the occasional convenience of “all in one stop” shopping. But if we want to save money, we hit Hyvee for the sales. We compare quality and prices to Aldi’s as a baseline, and if we can get stuff cheaper, it’s a buy.
Often Hyvee will be cheaper than Walmart for the way we shop. There are things at Aldi’s that we cannot beat for price, like bread. And their quality if very good.
We do coupon shopping pretty heavily, and I tease my wife of being a Rockstar coupon shopper when we hit Walgreens, as the clerks all come running to see what kind of deals she put together.


12 posted on 09/16/2008 4:21:21 AM PDT by Big Giant Head (I should change my tagline to "Big Giant penguin on my Head")
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To: Santa Fe_Conservative
In the current economic situation, it was to be expected for Wal-Mart (WMT) to thrive. It has always offered the lowest prices in groceries and other basic goods.

That simply is not true. Wal-Mart carries a lot of Wal-Mart only SKUs that make it impossible to scompare prices. (e.g. that inexpensive package of Jack Links's beef jerky is only 80% of the size of the package in other stores.)

Where I live, Woodman's (small employee owned grocery chain, stores are bigger than entire Wal-Marts) is cheaper than Wal-Mart for groceries and has better selection.

Target matches Wal-Mart on name brand health and beauty aid prices, and things on things like Similac baby formula. ($5.89/qt)

If you buy two, that same formular is $5.50 at K-Mart.

If you buy a case of six (which is no big deal in the world of baby formula), the winner is the brand new Babies R Us at a jaw-dropping $4.75 per bottle (again, it adds up).

On the other hand, Wal-Mart does carry Reese's peanut butter. But I have not found them to have the lowest prices on a whole lot around here.
13 posted on 09/16/2008 4:51:39 AM PDT by Dr. Sivana ("[Gov. Sarah Palin] is Phyllis Schlafly, only younger." -- Gloria Steinem)
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To: Kitanis
” Messy stores, out-of-stocks, apathetic, nowhere-to-be-seen and unhelpful associates, low-quality merchandise and unacceptable long lines at the few registers that are open at any given time still plague the experience at Wal-Mart. At Wal-Mart, you don't enjoy the experience: you endure it”

This simply does not at all describe the 3 Walmarts in my immediate neighborhood, nor the one at Carthage, Missouri, when I was visiting there, or Gainesville Florida, or Jacksonville...

14 posted on 09/16/2008 5:28:22 AM PDT by arthurus (Old age and guile beats youth and enthusiasm.)
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To: Kitanis

YES! I shop at that Wal-Mart and the experience is frustrating. Always low prices, but always overcrowded and understaffed. (And there’s a 15-40 minute wait for Customer Service.)

The only reason I shop at that location is that I don’t have a SuperCenter that I can get to by bus - I really wish there were more Wal-Marts around town, especially more SuperCenters.

But I wonder if all the hostility comes from the politicians or from the residents? I think the average resident is more favorable to Wal-Mart than the politicians are. The politicians don’t speak for the residents east of 82nd.


15 posted on 09/29/2008 2:34:22 AM PDT by judsonlegacy
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To: mozarky2

Crowded with illegal immigrants, perhaps.


16 posted on 09/29/2008 2:35:39 AM PDT by judsonlegacy
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To: Big Giant Head

Does anyone know whether the grocery prices at Supers are the same as grocery prices at ‘regular’ Walmarts?

I’ve never been to a Super, but many of the grocery items I see at Walmart are cheaper at some other stores.


17 posted on 09/29/2008 2:40:29 AM PDT by judsonlegacy
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To: judsonlegacy
Agreed.. but you can't tell Sam Adams that.. he is one of the more vocal people on the city council against Wal-Mart.. and Tom Potter the outgoing mayor did not help.

But you say that the bus takes you buy the Wal-Mart.. dose it go down by the one on 82nd in Clackmas?

18 posted on 09/29/2008 3:59:16 AM PDT by Kitanis
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To: Kitanis
The Wal-Mart I go too has large quanties of inventory, helpful associates and never has long lines.

All the Wal-Marts around me do. Add to that the miserable shopping experience at Sam's Club and that's why I've got my membership at Costco and haven't set foot in a Wal-Mart in some time.

19 posted on 09/29/2008 4:09:57 AM PDT by Non-Sequitur
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To: judsonlegacy
Does anyone know whether the grocery prices at Supers are the same as grocery prices at ‘regular’ Walmarts?

Walmart prices vary according to region, slightly. There is a Super Walmart about 45 miles south of here, and their prices are slightly higher than the one north of here.

I was scouting a software game and found the exact same item priced $5 higher at the southern store.

20 posted on 09/29/2008 4:49:05 AM PDT by Big Giant Head (I should change my tagline to "Big Giant penguin on my Head")
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