Is The Internet Killing Wal-Mart?
The Skinny: Big-Box Behemoth Losing Power As Consumers Shop Online, And Elsewhere
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Wal-Mart's overwhelming business and social influence in America is drawing to a close, the Wall Street Journal reports. (AP)
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Wal-Mart changed America, the Wall Street Journal reminds us this morning in its obituary for the retailer's "overwhelming business and social influence." But now America - and the world -- is changing too fast for Wal-Mart to keep up.
The price-slashing, union-busting behemoth has been having a rough go of things lately. For 10 years through 2005, Wal-Mart's sales gains at stores open at least a year averaged 5.2 percent. So far this year, its comparable-store sales are up just 1.3 percent. The pricing gap between Wal-Mart and it's competitors has narrowed, and more customers are now choosing convenience over wading through a supercenter.
The result is Wal-Mart's competitors are kicking its supersized backside: Target's comparable-store gains so far this year are 4.6 percent, while Costco's were 6 percent. And let's not even talk about the retailers bombed experiments in Germany and South Korea, both called off after failure last year.
Part of the change is competitor wiliness. Part is shifting tastes of increasingly affluent American consumers away from bargain-basement big-box toward greater convenience, more selection, higher quality or better service. ("For the first time in a long time, quality has a chance to gain on price," said one industry analyst.)
And part of it, apparently, is the Internet. Wal-Mart's loss of clout "is a reflection of a more fragmented world," the Journal reports. "Big-box stores thrived by selling recognizable national brands, which themselves were fed by two phenomena: the growth of mass media and freeways, which encouraged large stores in remote areas. Stores and brands together achieved scale efficiencies that allowed them to overwhelm local chain stores and regional brands."
"But the Internet is transforming the retail definition of scale. The once-stunning compilation of 142,000 items found in a Wal-Mart supercenter doesn't seem so vast alongside the millions of products available on the Internet. At the same time, the cost of creating and sustaining a national brand is rising because of media fragmentation."
Niche brands, promoted through Internet world-of-mouth, are stealing market share. One result is that "retail giant hold less sway over their customers - and their suppliers."
A case in point: Wal-Mart brought the barcode into our lives in 1984, when it demanded that all its suppliers have them as a way to help the store check people out more efficiently. But when the retailer jumped into the next big logistics technology, radio-frequency identification, in 2003, suppliers balked. Too expensive, they said. Sorry. We used to be scared of you, but we're just not that scared anymore.
Pakistani Army Losing To Al-Qaeda And Taliban
While Pakistanis picket about who's going to be president for the next five years, dark things are happening in the wilds of Waziristan.
Pakistan's government is losing its war against emboldened insurgent forces, giving al-Qaeda and the Taliban more territory in which to operate and allowing the groups to plot increasingly ambitious attacks, the Washington Post reports.
The radical Islamic fighters who were kicked out of Afghanistan by the 2001 U.S.-led invasion have intensified their campaign in Pakistan's tribal areas, now affecting major cities.
"Military officials say the insurgents have enhanced their ability to threaten not only Pakistan but the United States and Europe as well," the Post reports.
Meanwhile, Pakistan's military is considering pulling back from the fight in the face of mounting losses, officials say. They're not trained in counterinsurgency, they whine. The government is busy with "problems of legitimacy," the offer as an excuse.
They're also kind of embarrassed, the Post reports, ever since insurgents captured a convoy of 250 Pakistani soldiers a month ago without firing a shot. The soldiers, members of the sixth largest military in the world and recipients of $10 billion in U.S. military aid in recent years, are still in Taliban hands a month after they were taken hostage.
"In Waziristan, people are laughing at the army," said one tribal elder. "I really feel pity for those soldiers."
Anti-Smoking Police Kick Down Doors, Enter Apartments
We all knew this day would come. And, really, if we had to think about it, we probably also knew it would come first to California.
Smoking bans finally are inviting themselves into private homes this month, as lawmakers in two California cities are casting votes on unprecedented legislation that would let landlords and residents associations ban smoking inside apartments and condos, USA Today reports.
Today in Calbasas, the City Council plans to vote on expanding its anti-smoking law to bar renters from lighting up inside existing apartments. And next Tuesday, the City Council of Belmont is scheduled to cast a final vote on a similar measure.
Tens of thousands of apartments and condos have gone smoke-free in the past five years, management companies and health activists say. But legislating the bans is new.
Critics say the bans violate civil and property rights. The Belmont ban, in particular, has triggered outrage over the idea that a tenant could be evicted for lighting up. But few doubt that other cities will soon follow in its footsteps.
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See all 97 CommentsM&S are successfully riding out a sales downturn, not by selling cheap Chinese rubbish but with quality and a smile, it is a pleasure to spend in their stores which is more than I can say for Wal Mart.
If this idea catches on, maybe next will be kicking down doors to find somebody sneaking a slice of pizza at 1:00 AM...''cuz ya know that stuff contributes to obesity and high cholesterol, two more "maladies" that impact the bottom lines of Business and the insurance industry.
At the rate personal liberties are under attack these days maybe those Matrix films were prophecy rather than speculative fiction.
Anybody ever done any investigative journalism aimed at finding out how much money the insurance industry provides to legislators who back such ideas?
Not fast enough!
And remember when George W. Bush said "We must get Osama Bin Laden dead or alive!"?
That was just another lie from our cheerleader-in-chief.
I wonder when Wal-Mart is going to start some communist youth groups in America like they have done in China.....
Let''s hope so.
Posted by Rick_VT at 12:15 PM : Oct 03, 2007
You will be assimilated, resistance is futile.
Actually, when Sam Walton opened Walmart, he did so to provide an inexpensive market for American-made goods. After his death a man named Glass took over, that was when you first started seeing alot of foreign products on the shelf. Now, the dream that was Walmart has become as a previous postr says:
China-Mart.
I hate smoking. Poeple will still do it.
wal mart is a life saver but us surfers are only
thinking of ourselves i think. its a big world out
there.
"I don''''t know if you can even find a prodect 100% made in the USA anymore." posted by lewiston14
If you come to Canada, you might find some things made in the U.S.A.:)
It''s also brought up some new opportunities, but isn''t life more important than i-life?
I shopped a brand new Supercenter recently when it first opened out of curiousity since I had not been in a Wal-Mart store for several years. It was depressing and way too large. I won''t be back. As far as their grocery section was concerned, I found that my local Hy-Vee grocery chain has much cheaper prices and a far better selection.
I am still amazed every day and night, when I drive by their full parking lot, at just how many idiots continue to support them and their anti-American antics...
Say, did edwards ever get those pesky Republicans that live across his compound to move?
As far as breaking into people houses for smoking they better get a bigger morgue because people have had just about enough of government. Lew
The pendulumn is starting to swing back to the small, AND CONVENIENT neighborhood store, which has a lower overhead to pass on to the consumer, is easier to get to, and you find what you want quickly.
So, all you Wal-Mart corporate managers, either open your eyes to what you are doing to Sam Welton''s dream, or go the way of Montgomery Wards, Spiegel''s, and Sears.
By saving fuel costs, I save the same savings that
Wal-Mart offers by shopping closer to my home.
This c-r-a-p about the stuff in Wal-Mart being poor quality is just that,C-R-A-P. I don''t know about the U.S. but in Canada they sell exactly the same brands as everyone else.
My father-in-law bought some VERY expensive binoculars from a store that sold popular brand name stuff once. My husband and I saw the exact same binoculars, same brand, at another store for A LOT less money. I asked him why he would spend that kind of money on them when he could get it so much cheaper at another store. He told me that because they were more money, they must be better quality. Now the sad thing is that there are others out there that believe that too. We are talking about the SAME pair of binoculars, identical, same brand name. There is no difference in quality. What there is is stores taking people for a ride and ripping them off!
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Posted by erasmus6 at 03:07 PM : Oct 03, 2007
erasums6; You never heard of 2nd''s, brand name products with some kind of flaw? Well, thats what Wal mart sells, the products that have a small flaw on/in them. Most people can''t tell, but they are there.
Buy GE lightbulbs there and see how long they last. Then buy them at a Lowes or somewhere like that, and see how long those same bulbs last. I think you''ll be surprised. Thats why Wal mart is cheaper.
Posted by erasmus6 at 03:07 PM : Oct 03, 2007
Did you know that despite a well-publicized "Made in the U.S.A." campaign, 85 percent of a Wal-Mart stores'' items are made overseas, often in Third World sweatshops. It is to late to stop this now.
Given a choice, they most certainly will.
I moved to a town where the stores cater to the RICH. Why? I have no idea. I am not rich, but neither am I poor.
In this town everthing is mostly little EXPENSIVE shops. They do have a Zellers department store and have just built a HomeDepot but that is about it. Now they are building a Wal-Mart and that has everyone jumping up and down. They say it will put the small businesses out of business.
When I first moved here I was looking for a Hobbie or craft store and I finally found a small one. I wanted to buy some embroidery floss. Now this embroidery floss costs around 32 cents each at Michael''s and I had to pay 85 cents each at this little dinky store. That is more than double the price!!! That is absolutely ridiculous! I wouldn''t pay that if I was RICH! I could afford to pay it, but why should I? These people should be put out of business for ripping people off. Now that Wal-Mart is going in maybe these people will have to come down off their high horses.
So, all you Wal-Mart corporate managers, either open your eyes to what you are doing to Sam Welton''''s dream, or go the way of Montgomery Wards, Spiegel''''s, and Sears.
Posted by walt1944 at 02:45 PM : Oct 03, 2007
Now, we all know that Walmart did not start the erosion of "main street" and the end of the mom&pop stores, it mere was there to nail on the lid. The real culprit was the Malls. People (especially women) wanted the convenience of having everything under one roof, that way they could get their prescriptions, clothes, latest movie...etc without having to drive all over town. The elements that are destroying Walmart (although it will never really be gone, another one will rise up from the ashes) are also starting to tear down the large malls. The local one in my town has nothing, unless you want shoes, jewelry or clothes.
When I was talking about the binoculars being cheaper at another store, I wasn''t talking about Wal-Mart.
Also I don''t know what it is like in the States but here anything that has a FLAW must be stated on the packaging or in the advertisement of the product.
Now if you were to go to a dollar kind of store, you might find something that LOOKS identical to another brand, but isn''t the SAME brand and it could be inferior.
Sorry, I disagree. It is NEVER too late. All people have to do is start complaining and stop buying all products form China. The problem is that people are just to LAZY to do that. They b-i-t-ch and complain but will do nothing to try and change things. If people stop buying and bombard them with phone calls they will have no choice but to change. NO MONEY, NO BUSINESS!
Here in the States, Wal Mart is/was our dollar store, when Sam was alive. And yes it is posted, well used to be anyways. But do as I suggested in my earlier post, don''t take my word for it, but I think you''ll be surprised.
Like I said, nothing can be sold here if it is flawed, without it being stated.I have shopped at Wal-Mart many times and have NEVER found anything that has said that it is flawed.
Also we have another store that has even cheaper priced stuff than Wal-Mart in it. It is called the Canadian Superstore. Neither Wal-Mart or the Superstore can be classified as a dollar store. A dollar store sells things that are no more than a dollar. Anyways, at the Superstore, I can buy make up and many things for up to $5.00 cheaper. I am talking about Cover Girl, Mabeline or whatever. I can buy my CHEERIOS made by GENERAL MILLS for $2.50, whereas at Safeway or any other store I would be paying $6 or $7. I can assure you that these things are NOT flawed.
People have been brainwashed into thinking that if they aren''t paying more for something there must be something wrong with it. NOT SO. At least where I live it isn''t like that.
I am thinking that you may have a problem in the U.S. with not being able to believe in what you are getting. Like your medications and stuff, for instance. If I have to get a particular medication, it is a guarantee that what it says is in it,IS IN IT.
Innovation is the best thing for eliminating a conglomeration of power. Large companies are forced to either buy out or crush small innovators in order to retain their power and monopoly positions. Arguably the free market economy suffers from such large companies as a result, both while they dominate, and then later while they fall.
Well Canada must have continouse rainbows, always springtime and gold dust in your eyes of blue, and angels suddenly appear.......etc, etc....Walmart sells 2nd quality, or 2nd tier products here. I know, I quit buying that *** long ago, Oh and I stopped buying the notion that the American dream is attainable and true too! It doesn''t exsist, it was a scam! I know , I lived it, Like Wal mart sells junk.
Now medicine, thats a different story.
Well, all I can say is that I feel very sorry for you. It must be awful living in such a corrupt country. Hearing what your country is like makes me feel like there are continuous rainbows and springtime .....:)
I think Canada is nice country otherwise, just got on a little tiff about walmart. And I need to tip my hat to the Carpenters, half my post was their words.
Ya this country blows any more. Been lied to ever since I started working. Work hard and this will happen, that will happen,......blah,........blah doesn''t work like that. It''s always who ya know, and who b low here
I hate to tell you this, but we don''t live in igloos like some people think. Where I live, (and with global warming :))the temperatures can reach 80 to 90 degrees and the winters are, for the mostpart, fairly mild. We do get some snow but really not that much.
Differrent story, same end result, that blows here too erasmus6
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Posted by erasmus6 at 05:33 PM : Oct 03, 2007
Hey, what did I say, I know you don''t live in igloos. I''m from upstate like I said, Thats too cold for me. GOT IT!! Now I know your just trying to p i s s me off
I really think you would be so much happier if you moved to Canada (west).
NO GUNS ALLOWED, though! :)
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