Joel Warady

Wal-Mart Taking Hits Over Price, Selection

March 9, 2010

FROM RETAILWIRE:
Two separate articles conclude that Wal-Mart Stores is having a tougher go of it since the economy began to rebound, in part because a wide variety of competitors have found ways to beat the world's largest retailer on price. Do you see Wal-Mart as being more vulnerable to competition today than in the past?      [more...]

Walmart has put itself in a tough position. The dollar stores, like Family Dollar and Dollar General are less expensive on most items when compared to Walmart. And they now carry many of the major brands, with products produced specifically for this low-priced channel. Target has a higher perceived quality, and a greater perceived selection, along with a better shopping experience than Walmart, which places Walmart right in the middle.

Being in the middle is a very tough position in which to be, and a difficult position to defend. Interesting how Walmart has boxed themselves in this way. Should we count Walmart out? I hardly think so. But it does show how they have lost their way a bit. They need to rethink their strategy, and figure out what message will best resonate with the consumer.