Walmart's New Competitor-Crushing Initiative
Walmart is looking to grow. Yes, grow. Their latest initiative, "Project Impact," aims to make stores easier and quicker to navigate, improve customer service, and to move in on competitors' territory as much as possible.
Project Impact calls for remodeling about 70% of Walmarts in the next five years, and improving sales in major competitors' fields, such as toys and crafts. So long, Toys 'R Us, it was nice knowing you.
"They've got Kmart ready to take a standing eight-count next year," says retail consultant Burt Flickinger III, managing director for Strategic Resources Group and a veteran Walmart watcher. "Same with Rite Aid. They've knocked out four of the top five toy retailers, and are now going after the last one standing, Toys "R" Us. Project Impact will be the catalyst to wipe out a second round of national and regional retailers."
Which would you rather have—a bigger, more pleasant Walmart, or more competing retailers in your area?
Walmart's Latest Move to Crush the Competition [Newsweek] (Thanks to everyone who sent this in!)
(Photo: genebob)
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Comments:
If Walmart provides great service and a products then I'm fine with it.
My grandparents use to tell me that people worried about how A&P stores had monopolized the grocery story market in their area (circa 1960s). Many thought once there was no competition that their food prices would rise. That didn't happen and in fact food prices have been decreasing since the 19th century. Now there isn't fear of an A & P monopoly because it didn't last and in fact there isn't a store left in the entire state.
I think this kind of growth is fine and not really monopolistic. It's different when they are buying up all of their competitors and closing them down or merging them into the bigger brand. What Walmart is doing here is pure growth, even if they are intentionally targeting their competition. Can't really fault them for providing a service that people want better/cheaper than everyone else.
More and bigger Walmarts means more people of Walmart
[peopleofwalmart.com]
Always good for a laugh.
Screw Walmart. That place is awful. The one near me is dirty, understaffed... the Target by me, on the other hand, is freaking awesome. I know Target is just as bad, honestly, but lesser of the two evils. I never want to give my money to Walmart, considering the evils they do with it. I'm sorry, I can't patronage a place that treats it's workers so terribly, moves out all the other local businesses and makes the world a worse place altogether.
Their commercials annoy the hell out of me too. I forget which blog it is, maybe Jezebel, that pointed out that in all the college ads, Walmart seems to only have single mothers in them. I'm not against single mothers, I dunno how to phrase this in a way that doesn't make me seem like a jerk, but isn't that sorta weird?
I'll shut up now. Walmart just raises my hackles.
There are two Wal-Marts in close proximity to me. The one on "the wrong side of the tracks" is what you'd expect out of Wal-Mart: dark, dingy, messy, and unhelpful (though I still go there often because its, well, cheapest).
The other Wal-Mart (obviously one of the new, remodeled ones) is in a nicer area, and its surprisingly bright, clean, and pleasant. Actually, it's become nicer than pretty much any competing retailer around it. If this is a part of Wal-Mart's big plan, then I'm very-much all for it.
@Kogenta: They did this in the early 90's. As they killed off other stores prices went up and the stores gradually started to suck more and more.
They will do it again. Walmart already feels like some Soviet era state store. I really don't want them to actually become one.
@rte148: One can only imagine the half dressed greeters washing cars and eating burgers commercial.
Only it is Walmart, so they are still using retirees.
@Eldritch: I find Target way better in a number of ways. They are a big box store, they don't pay the greatest and much of their product is imported. Other than that they are less abusive to the employees, the products are better quality and the stores are much more pleasant to use.
@bohemian:
Walmart isn't gobbling up other stores; they are just taking those store's customers because they'd rather shop at WalMart.
Ah yes, it is so sad when one faceless, all-knowing conglomerate takes over where another faceless, all-knowing conglomerate use to rein.
People speak of Wal-Mart taking over from the little guy when the little guy doesn't exist anymore. It's fighting between one national chain or another.
@Bunnyhat: no there's at least one mom n pop toy store left that i know of. it's right in the heart of UVA charlottesville. i try find an excuse to shop there every time i am in the area, but that only happens a few times a year. it's sad watching them struggle to make sales though
@Bogart's Falcon: Just Forget the Other Name: While I don't exactly hate them (I save that disdain for K-Mart.) I agree with you in wanting to see more competing retailers. Now do you mean existing retailers or new stores? Here in Texas we have more "Dollar" stores then you could imagine so those occasionally make a fairly decent alternative Wally World.
@TheSeeker: I LOVE this site. I have almost convinced myself to start taking my camera with me when I go. I have seen some things that would would not believe. Or maybe you would.
You know, the worst part of this plan is that it hurts the consumer. Category specific stores such as Michael's carry a wide array of merchandise of a particular category so you are able to find niche items that might not sell as many units but are still something that people need. There is more depth and breadth vs. Wal-Mart who is only going to see a shallow, limited supply of those items that turn quickly. We just won't have as much variety, and will be faced with few choices. So greedy.
@jamar0303:
That's pretty rational. Two employees go off the reservation in a country where standards are drastically different and shoplifting is seen as a significantly more serious crime than it is here and you swear off the store completely.
@HogwartsAlum: It just occurred to me to be veeeeerrrrryyy careful what I wear when I go to the store.
@Bogart's Falcon: Just Forget the Other Name: Competition is almost always better for the consumer and Walmart has built itself up by eliminating any possible competition. I'd love to see them go away.
Hasn't this happened before?
When Home Depot first came into the neighborhood, before it snuffed the local and really good lumber and hardware stores, it offered free loan of tools (and some rather industrial ones to boot), stuff like free glass cutting and oogles of other useful things. Now, it's only tool rental and you can buy a glass cutter and DIY. And the prices aren't nearly as super as they were. Their basic propane tank is $32, at Costco with a gauge it's $27.. but I don't think they'll snuff Costco.
Is Walmart on the same track?
@bohemian: Heh. Can you imagine a dark future when Walmart is bailed out in a recession and then goes on to be even bigger? They'll take over the country and have Walmart KGB agents everywhere.
It works in my head anyway.
@EtherealFlame: I'd like to see both new stores and existing retailers. We currently have K-Mart, Target and some "Mom and Pop" type stores. I try to shop in the latter whenever I can. Even though I might pay a bit more for something I'd rather give my money to someone who lives in my community.
We also have a large number of different "Dollar" stores but I don't purchase too much from them.
I think Wal-Mart's starting to feel the pain. I've noticed their prices are creeping past their competition while their stores stay the same horrid places to shop they've been for the past 10 to 15 years.
Wal Mart got where they were through a combination of low prices and friendly people. When they got huge they completely abandoned everything but the low price.
My money is on Target starting to kick their butt. K-Mart and Sears used to be number one. Look what happened there.
@Esquire99: What would it take for you to consider this a monopolizing effort? Really, what else can it be?
If this isn't the final solution towards monopoly, I don't know what is.
And, no offense, but it still surprises me to hear that anyone savvy enough to comment on the consumerist would also go to Waldemort. Maybe some folks just don't have a choice. Sounds like a...
@TheSeeker: They'll have to change the name to peopleofamerica, because that will be the same thing before long.
@mackjaz: I have a choice of where to shop and I do shop at Walmart with some regularity. So much of what we buy these days is commoditized - you'll get the same products no matter where you shop, so why wouldn't I frequent the retailer that manages to get me the best price?
I've seen the tirades some have on this site about Walmart. It drives other stores out of business? If other stores can't compete financially that's capitalism. Kudos to Walmart for delivering goods more efficiently.
They don't pay or treat their employees well? The employees are free to work elsewhere. They choose to work at Walmart and some (gasp) actually enjoy it! It is work which is tough to get in this economy. Do you really think that the Mom & Pop stores and (God help me) fast food pay or treat their people better?
No you are not likely to get the best customer service at Walmart - won't find that at the big box stores either, but you do save money. I'm happy to say I shop at Walmart and I'm very glad for the savings.
@bohemian: I'd say they aren't taking the customers. The customers are CHOOSING to shop there instead of the smaller, less efficient stores.
@bigd7387: AT&T was a government regulated monopoly that was broken up as a strategic issue, not because it was a monopoly. Microsoft was not broken up as a monopoly but had some restrictions placed on who it could purchase and what it could bundle into their operating system.
What market is Walmart supposedly a monopoly in? Groceries, clothes, consumer electronics, pharmaceuticals? They are not a monopoly in any of these. They are one of many dominant players in each of these and a formidable one at that but capitalism rewards efficiency. There's certainly nothing illegal in that. Consumers vote with their dollars and overwhelmingly in Walmart's favor.
@varro: Do you avoid fast food for the same reason? Think your wait staff at the restaurants are paid well? How about the maids and gardeners? Might as well not shop at any retail store then either. All of these are paid at or near minimum wage.
@jamar0303:
Funny thing at the Walmart near me I haven't seen them check receipts in a couple of years. I've seen the greeter put stickers on bags or items that people bring in with them but thats it.
@Bogart's Falcon: Just Forget the Other Name:
Don't blame Walmart for its tactics, blame the consumers that enjoy its low prices and that its a one stop stop for everything.
Walmart would be nothing if people didn't shop there, however since people do, they must be doing something right.
@YouDidWhatNow?: Thanks for the Demolition Man movie reference. I agree with you. I shudder at the thought of Wal-Mart making themselves the only game in town. I would like to think Sam Walton is rolling over in his grave. He wanted to build a place where his local neighbors could shop affordably, not put them out of a job by forcefully recommending that a company off-shore their labor to save money. They also shave down the product's features or quality to get that price lower. They keep pushing us down to the lowest denominator.


















Considering I dislike Walmart with a passion I would rather see more competing retailers.