Though the final numbers are not yet in, the analysts are predicting an unusual win this holiday season for Walmart:
So what has turned the tide for Wal-Mart?
Johnson traced it back to strategy changes that the retailer made in January.
Wal-Mart hired a new advertising firm, Martin Agency, ranked by Advertising Age as one of the top five agencies of the year in 2006. In the same month, the company named Stephen Quinn as chief marketing officer.
Said Johnson, “Quinn used to be CMO at Frito-Lay. Industry insiders say he has a very strong marketing mind.”
Wal-Mart strengthened its branded electronics offerings by introducing Dell computers to its stores in June. In September, Wal-Mart discarded its staid “Always Low Prices” slogan for a new tagline – “Save Money. Live Better” – in time for the holidays.
“If you make a promise like that, you have to deliver it in your store,” Johnson said.
Industry experts said Wal-Mart backed up that theme by being the first to aggressively slash prices on thousands of toys in late October followed by a round of early discounts in November on some of the year’s hottest electronics.
Target chose not indulge in an early price war with Wal-Mart.
Analysts said Wal-Mart appears to have outperformed Target on grocery purchases as well, which account for a big chunk of both retailers sales.
“There’s a real sense of urgency at Wal-Mart. The stores had that festive feel and look in early November,” Johnson said. “In some Target stores I visited, the level of service varied from indifference to non-existent.”
And here we thought “that festive feel and look” was annoying. Shows what we know. Here’s another interesting observation:
“This holiday season Wal-Mart really outmaneuvered Target in service,” Buxbaum said.
“As a merchandiser, you can’t ignore the customer experience. The level of helpfulness in Target stores is approaching Home Depot territory,” Johnson said.
Really? Can it be true? Is Target really as awful as Home Depot?
How Wal-Mart stole Christmas [CNNMoney]
(Photo:meghannmarco)
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My father used to work in Wal-Mart management, and he told me that a few days ago that he thought that they would have a great year, in part because 2007 was the year that they finally killed layaway.
@ekthesy:
I love those stupid singing rat Quiznos commercials! They got a pepper bar. Those rats got me to start eating at Quiznos, then the Quiznos service and food quality went down while prices stayed up.
The main difference between Target and Walmart is that Target has their own brands and designers, they make it a fun place to shop for things that make you feel like you’re buying boutique items without paying boutique prices. But with the higher prices compared to Walmart, I also expect better customer service and cleaner stores shopping at Target whereas I don’t expect any customer service at Walmart. Most of the Target stores in my area have gone steadily downhill in the last year, they’re dirty, shelves are not stocked, no help to be found. What really pissed me off was that the pharmacy hours weren’t posted anywhere, the CS reps chit chatting in the messy returns area didn’t even know what the hours were, it turns out the pharmacy was open during the hours of 9am to 8pm…which makes it pretty difficult to pick up and drop off prescriptions in the 2 hour window when I’m not at work. They’re now making a big deal that the pharmacy hours are extended to 9pm, oh geez I can barely contain myself.
@ HN333 … your Wal-Mart has 10 of 30 checkout lines open??? The one near us has 30 checkout lines – just like yours – but often has as few as 3 checkout lines open (sans the “self-checkout” lines). You should count your blessings!
The Kmart here is the worst, the cashiers you can just tell are the lowest of the low people in this world, and they keep a whole TWO registers open even during the busiest times. Add to that the constant need for managers overrides and price checks and printing up those overrides on a computer system that is probably outdated by 20 years does not add up to a pleasant shopping experience. Perhaps this is why the other Kmart near me is now in the process of closing. They also don’t hire young people, but rather overwork their older workers that have been there for years, which means less jobs for young people who need a temp job.
Target and Walmart are basically the same, both stores are understocked, both stores never have what you want when you need it. Both stores have an extremely limited stock of products, and narrow aisles that you can barely fit through. Both stores are equally dirty and sell an equal amount of chinese made goods. Both have staff that avoid you. Both stores fire most of their holiday staff leaving 2 registers open starting December 26th (this is a precedent for shopping at Kmart, never expect more than 2 registers open throughout the whole year). At least there is no shortage of young people working at target, so by shopping there you support jobs for young people.
It looks like the new tagline is meant to make people feel less guilty, if they know Walmart’s record, just like not wanting the Salvation Army standing at the door reminding customers that some people can’t afford to eat or buy a blanket. And if wages aren’t keeping up with the cost of living, of course people are going to gravitate towards companies that slash prices.
Let’s not forget that wages have fallen by more than 40% in the last 30 years… but living standards haven’t.
Relentless, brutal cost-cutting by firms like Wal-mart is what has made that possible.
Wal-mart teaches the importance of good customer service to its employees and puts associates out on the floor to field questions and give assistance. That is the difference. Target seems to use its wage budget on overnite stocking and maybe in customer service areas, like electronics and cashiers. This is okay except they are skimping on floor associates to save money, which is a losing strategy. Customer service makes a big difference.
My fiancee doesn’t want me going to Wal-Mart alone at night…I say I want to go to Target, he doesn’t bat an eye. They’re in the same shopping center.
’nuff said.
So wait….so do we take statement at face value from a firm who’s contact is with Walmart ?
Do you really think they are going to say somethign *bad* about their client ?
dude… never compare target to home depot… wtf.
though their no receipt policy would have me second guess registering there…
@ekthesy: Those “cadaver gerbils” (my name for them) are apparantly called Spongmonkeys, which they apparantly bought the rights to from the creators (see [www.rathergood.com]). I had never eaten at Quizno’s before, and those things actually kept me from wanting to eat there for years (who approves anything that nasty looking to promote food?!). it wasn’t until sometime late in 2006 that I tried a Quiznos. And it wasn’t very impressive for all their hype, so I havn’t ever been back.
Customer service at Target is non-existent. I waited for help after I asked one of the pharmacists to page the person in charge of the department I needed help in. After no one showed up for 10 minutes, I picked up the red phone and 5 minutes later, someone showed up. 15 minutes of waiting! If it weren’t for the fact that Target was the only game in town that sold what I needed…I would have walked away almost immediately.
I prefer Target. ALWAYS Target.
First Ben on Fox Business Channel and now this ridiculous propaganda from Meg? Are you trying to make me cry, Consumeristas?
C’mon. “Brilliant marketing mind?” Why must everything in the world be portrayed as reducible to one genius/hero or moron/villain?
If I wanted that kind of schlock, I’d follow the MSM.
Please, there are just as many crap items from China in Target as Wal-Mart – just like ANY retailer in this country. It is abominable! Where is the “made in the USA” store??
@suburbancowboy: