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To: MississippiMan
Also note this: Pay attention to the "boutique" businesses that pop up to differentiate themselves. Wal-Mart does. And the moment those niches start to become widely accepted and dependably profitable, Wal-Mart will step in and take them, too.

There are some areas Wal-Mart really can't compete in because their business model doesn't allow for it. Around the DC area, we have Wal-Mart, but we also have a very succesful high-end food chain called Whole Foods. The type of people who shop at Whole Foods aren't going to go shopping at Wal-Mart for their organic food needs.

Wal-Mart can beat anyone on price, true, but price isn't everything.

103 posted on 04/11/2005 12:04:16 PM PDT by Modernman ("I'm in favor of limited government unless it limits what I want government to do."- dirtboy)
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To: Modernman
There are some areas Wal-Mart really can't compete in because their business model doesn't allow for it. Around the DC area, we have Wal-Mart, but we also have a very succesful high-end food chain called Whole Foods. The type of people who shop at Whole Foods aren't going to go shopping at Wal-Mart for their organic food needs.

Wal-Mart can beat anyone on price, true, but price isn't everything.

The crowd to whom price isn't everything is a tiny percentage. In a large metro area, sure, the ultra-specialized businesses that are run right can make it because even a small percentage of the whole still constitutes a large enough customer base. Not in small towns.

Just keep an eye on the ever-expanding Wal-Mart selection. Twenty years ago, if you wanted a nice TV, you went to a consumer electronics store. Ten years ago, you went to Circuit City as the indies were by and large fading into the sunset. Now you can buy HDTV plasma at Wal-Mart, and for the vast majority of people, those models are good enough. And that is of course just one category of merchandise. The trend applies to many others.

MM

110 posted on 04/11/2005 12:43:28 PM PDT by MississippiMan (Americans should not be sacrificed on the altar of political correctness.)
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