Walmart Takes Steps to Deal with Dollar Stores
Former Walmart CEO David Glass once famously named dollar
stores as the biggest threat to the chain’s dominance in the retail market.
than 10 years later, Mr. Glass’ concerns appear to be born out by a New
York Post article that reports Walmart is asking suppliers to come to
the retailer with their lowest "opening price points" to deal with
competition from the likes of Dollar General, Family Dollar, etc.
One unnamed supplier
to Walmart told the Post, "It’s pretty unusual
to have them calling you instead of the other way around. They told us, ‘The
dollar chains are eating our lunch, and we’re not going to let them do that
Another quote attributed to a supplier to Walmart claimed, "The
message is, ‘Anybody who can deliver opening price point [goods] for us will
become a vendor — anybody who can’t, can leave.’ Not since the 1990s have
we seen Walmart signal this level of competition on price."
Discussion Questions: Are dollar stores “eating” Walmart’s lunch as suggested in The New York Post report? If the report is correct, what will Walmart’s response mean for its dollar store competition?