No. of Recommendations: 5
Wal-Mart Fishes Upstream
Its new Supercenter in Plano, Tex., is a laboratory for the retailing giant's attempts to lure higher-income customers

It was not just another Wal-Mart store opening. On Mar. 22, thousands of shoppers, vendors, and media got a glimpse of what could be the Store of the Future for the No. 1 worldwide retailer. This upscale version of a Wal-Mart Supercenter in Plano, Tex., is a 203,000 square-foot laboratory where management intends to test some radical strategies and tactics that aren't in the tried and proven Wal-Mart (WMT) playbook.


http://yahoo.businessweek.com/investor/content/mar2006/pi20060324_117687.htm

Denny Schlesinger
Print the post Back To Top
No. of Recommendations: 2
The fact that they are aggressively examining ways to make the stores more attractive (and to include a greater range of products) strikes me as a good sign.
Print the post Back To Top
No. of Recommendations: 3
Its new Supercenter in Plano, Tex., is a laboratory for the retailing giant's attempts to lure higher-income customers

There are only two companies that Wal-Mart concerns themselves with; Target and Costco. Costco is obvious as they generate something over 4 or 5 times the dollar volume per store as Sam's Club and a higher end of customers.

Target is only somewhat obvious. Target is about 1/10th the size, but it is not its size or its rate of growth. It is the fact that women express that they like going to shop at Target and they don't like going to shop at Wal-Mart. Wal-Mart understands that this is a weak point in their marketing, but it may also be a certain amount of envy that a store that uses a similar physical presentation of the product is perceive so differently.

I guess that this is their first try at changing their image. It may not be a bad thing, but, then again, is Wal-Mart doing the right thing trying to change their image?

Note that I own some Wal-Mart shares, but I bought on the basis that Wal-Mart would eventually find a new market to get into that will increase growth, not try to change their image. This is actually a sign (though a small one) of weakness on the part of Wal-Mart. It may be that they feel they can't get any more domestic grwoth through other business ventures and have to "fix" what they already have to generate new sales. I can't remember too many companies that have successfully changed their image, at least in the retail market.

bozob
Print the post Back To Top
No. of Recommendations: 0
Wal-Mart understands that this is a weak point in their marketing, but it may also be a certain amount of envy that a store that uses a similar physical presentation of the product is perceive so differently.


Really? My experiences with the two stores is that Wal-Mart is generally less organized, cluttered, and less inviting then Target. But I have to admit that the local Wal-Mart has improved in that area lately. Seems cleaner lately. Maybe it was a local management problem.

Dan
Print the post Back To Top
No. of Recommendations: 1
Really? My experiences with the two stores is that Wal-Mart is generally less organized, cluttered, and less inviting then Target.

I guess I was just thinking of the big-box format which is decidedly different from, say, a department store. One of the things I've heard that Wal-Mart is doing is reducing their shelf height to make the store presence more inviting.

But I have to admit that the local Wal-Mart has improved in that area lately. Seems cleaner lately. Maybe it was a local management problem.

Stores that are not well organized, chaotice, and not very clean is usually the first sign of a retailer going downhill since they cut floor personnel first to save costs.* But if it is reorganizing and improving the appearance then it shows that management cares about store appearance which is most important in appealing ot the consumer.

I don't think that Wal-Mart is poorly run, but the question is out there whether they can change their image without losing their regular clientelle.

One thing is certain...Wal-Mart is second to none in the logistics of getting the goods to the customer at the lowest cost. So long as they can maintain that while they are trying to make the stores more appealing they should do well.

bozob

*I learned this from my sales manager who used to be a buyer in both a department store and a discount store before switching jobs and selling to those same buyers.
Print the post Back To Top
No. of Recommendations: 1
People who shop at Walmart (and my wife and I count as such) will not stop just because upper class people start shopping there. Lower prices will always attract those who can't afford other options as well as cost-conscious shoppers.

Regards,
Trond
Print the post Back To Top
No. of Recommendations: 1
Hi Denny.

new Supercenter in Plano, Tex., is a laboratory for the retailing giant's attempts to lure higher-income customers.....

....upscale version of a Wal-Mart Supercenter in Plano, Tex.


Somehow I don't associate high income, upscale customers with Plano, Texas.

MW
Print the post Back To Top
No. of Recommendations: 0
Somehow I don't associate high income, upscale customers with Plano, Texas.

Then you don't know the north Dallas area. One of the wealthiest parts of Texas.

--
whyohwhyoh
Print the post Back To Top
No. of Recommendations: 1
Somehow I don't associate high income, upscale customers with Plano, Texas.

Boy! Get the bovine feces out'a your preconceived notions.
Just 'cause we Texans got guns (and a lower violent crime rate than y'all) don't mean we ain't got no cash (small unmarked bills) or class.

"Plano is within the Dallas–Plano–Irving metropolitan division of the Dallas–Fort Worth–Arlington metropolitan area, a title designated by the U.S. Census, and is colloquially referred to as the Dallas/Fort Worth Metroplex. The city is home to many corporate headquarters, including Dr Pepper/Seven Up, Inc., Electronic Data Systems, Frito-Lay, Cinemark Theaters International, and JCPenney."

http://en.wikipedia.org/wiki/Plano,_Texas

Q. How do you know which one is the Aggie on the offshore oil rig?

A. He's the one throwing bread to the helicopters.
Print the post Back To Top
No. of Recommendations: 1
When I was down in Palm Desert CA a few weeks ago I noticed that across the street from Home Depot and Costco the newest construction was both a Sams Club and a Wal Mart - right next to each other. Up the hill was a Lowes.

Where are they going to get the business to maintain market share? They will, for the most part, be cutting proces on each other (to the consumers benefit), just to get the traffic.

cat
Print the post Back To Top
No. of Recommendations: 2
Somehow I don't associate high income, upscale customers with Plano, Texas.

Boy! Get the bovine feces out'a your preconceived notions.
Just 'cause we Texans got guns (and a lower violent crime rate than y'all) don't mean we ain't got no cash (small unmarked bills) or class.


Boy am I glad I ducked just in time :))

Denny Schlesinger
Print the post Back To Top
No. of Recommendations: 0
One of the wealthiest parts of Texas.

That probably explains why I don't know about it, I don't run in those circles. Must be where Mark Cuban lives, huh?

MW
Print the post Back To Top
No. of Recommendations: 0
That probably explains why I don't know about it, I don't run in those circles. Must be where Mark Cuban lives, huh?


Probably the most well-known person associated with Plano, Texas is Ross Perot, who founded EDS and PER, both are headquartered in Plano, TX.

--
whyohwhyoh
Print the post Back To Top
Advertisement