Just when we think Wal-Mart is gaining ground in certain areas, it loses in others. This is nothing new to a point, as Wal-Mart Stores, Inc. (NYSE: WMT) has a whole host of things against it every day; fierce competitors try to chip away at pieces of its business with differentiated offerings and fresher strategies, and many communities that will stop at nothing to keep the world's largest retailer from entering certain cities and towns.Wal-Mart estimated over the weekend that October same-store sales will increase only 0.5% in October, setting the stage for possible share turnover today (it's already underway -- the stock is down 2.64% to $49.39 at last check) to more and more comparisons against Target, which continues to outshine much-larger competitor Wal-Mart every month with higher same-store sales reports. Remember though -- a 2% gain at Wal-Mart is not equitable to a 2% gain at Target Corporation (NYSE:TGT) -- the two chains are quite different beasts when it comes to overall sales and revenue figures, with Wal-Mart being about five times larger than Target in terms of overall revenues.
But, with that being said, Wal-Mart's latest estimate has been dropped in the midst of a series of sales misses. Wal-Mart has struggled, and will continue to do so, to shed its bargain-basement image and attract higher-scale customers. These are the ones who now flock to Target, which has made that exact transformation in the public eye recently. Wal-Mart has one massive re-badging effort to go, and I'm not sure if they can ever get there without incredible moves -- which most of us have not seen yet.
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Reader Comments (Page 5 of 22)
10-30-2006 @ 9:20PM
upset walmart customer and employee said...
Walmart is really going down hill. Every since Sam Walton passed those kids of his are just f****** up everything possible. They are taking away sick time and starting this stupid a** points thing. After 7 dings they can let you go. Crock of sh** huh, I hope Target rises so high that Walmart gets left way in the dust. I'm sorry they are already in the dust.
10-30-2006 @ 9:20PM
Elizabeth said...
Walmart is a All in one, One stop shop, Which Target is not. Target is Higher in prices, Hard to get into, and misplaced. Target is headed up By a French firm i hear, And the French dislike Americans. They put there stores here to ripe us off, everybody tries to jump on the bandwagon, lets hate the americans, take there money, verbal assault them and everything else we can think of. At least Sam walton was American! yea he is rich, But that is because he is smart, don't bash him cause you didn't think of it first!
10-30-2006 @ 9:23PM
Debra Cain said...
I like to shop at Wal Mart,but now that they are getting rid of layaway,I might be forced to shop elsewhere.I think a lot of people think the same.The poor and people who have a limited income used the layaway plan.That's the only way I could buy Christmas gifts for my family.And it's a shame it won't be available for people like me any more.
10-30-2006 @ 9:24PM
steve smith said...
Target is much more expensive in their prices, and even their generic store brands aren't that much cheaper than brand name products. Target's increase in sales must have some relation to the profits they make from overpricing their products a lot more than Walmart.
10-30-2006 @ 9:21PM
Gary said...
Walmart hires all the surly, disinterested people looking for jobs and deprives other businesses of the opportunity to employ them. And they become more surly because they think they are underpaid and overworked instead of lucky they even have a job. Yes, Walmart's prices are better than Target but the shopping experience is unbearable. But watch out for Target's Pharmacy. They are consistently much higher than any other Pharmacy, even Walgreen's. We recently checked the costs of 11 common prescriptions and they were up to 70% higher than Costco and 28% higher than WalMart. Target gives you a good price in one place and then sticks it to you on another.
10-30-2006 @ 9:21PM
Jane Lawrence said...
Target is owned by the Target Corporation which is based here in the Twin Cities of Minnesota -- not FRANCE!! Target started out as a subsidiary of Daytons, a family-owned department store that eventually acquired both Hudsons (Detroit) and Marshall Fields (Chicago). The deparment stores were sold off a while back, but the corporate HQ is still here in Minneapolis. Target gives 10% of pretax profits to charity -- I love Target!!
10-30-2006 @ 9:32PM
Kelly said...
I don't shop at WalMart and never will. They destroy the economy of any community they come into with low paying jobs, terrible service and shoddy products. They drive Mom and Pop type businesses out of the market and add nothing to the community.
10-30-2006 @ 9:24PM
Julio P said...
For those of you that find Walmart so cheap do not forget that thanks to them arts&crafts in this country does not exist anymore as a viable business due to a flood of chinese made things.Thanks to them China has the fastest growing economy in the world and their demand for natural resources for their growth is now making it expensive for us to buy anything to maintain our own industry. Just check the price of steel, nickel aluminum or the delivery time for any kind of industrial equipment all of it ........Is going to china!. Keep buying Walmart to save a few pennies and maybe soon you will lose your job because the chinese imports will make your company close their doors.
10-30-2006 @ 9:25PM
tallan said...
You can sure tell the wal mart crowd by the way they spell. Hee-hee I agree with the one comment, i will gladly pay the extra five or ten cents for peace of mind and better service.
10-30-2006 @ 9:30PM
Maria Hall said...
As a Great Grandma I have to use the lay-a-way especially at Christmas. There's no other way I can shop for all me grand and great grandchildren. I'm going to find another source that has lay-a-way options.
10-30-2006 @ 9:29PM
socalcustomer said...
PS: I went to Walmart, for a lack of a nearby Target, for the first time in about 6 years. And as expected, I found the ailes were still filled with merchandise, while shelved ailes were filled almost to the ceiling! How the H*ll can anyone shop with so much cr*p obscuring the store view. There were hardly any floor employees to help me find bathroom tissue, and the store layout is so confusing. When I finally found what I was looking for, the product selection minimimal. What a lousy compromise I made, AND I WON'T BE RETURNING! EVER!
10-30-2006 @ 9:30PM
Sharron Landin said...
if WalMart is loosing to Target it is, in my opinion, because WalMart seem to be competing with Target. i LOVED WalMart because i could always find clothes that worked for me, an over 50 lady. lately, it seems all the WalMart clothing is for the younger set. that was always my complaint of Target. now i don't see a big difference between the two, as far as clothing is concerned, and other things are not that different either.
10-30-2006 @ 9:26PM
jen said...
Target is the best company to shop or work for. Walmart may claim to be into community service and giving back but Target does so much more then they do. Walmart has untrained and hang high types in their loss prevention. Target provides a safer store because there loss prevention team is trained and cares more about everyone's safety. I think feeling safe in a store has alot to do with where peopl want to shop. I rather be at a store that is not going to watch someone for a minute and think because I fit the description of someone they saw steel something and then stop me at the door when I didn't do it it was some one else. How would you feel if you got tackled by accident and all you got was a my bad I thought you where the other guy. (I saw this happen before) I would much rather have a saftey focused store as my place to shop over walmart any day. Someone that would care if they have a kid near by the doors and chose to let the person go rather then hurt someone!
10-30-2006 @ 9:44PM
Ruth said...
I live on the border of PA/MD line. I commute to work in Baltimore and DC.
I am smack between a Super Walmart and a smaller one in Gettysburg.
I have to remark on some of the things I have read.
Rude customers? Try going to Giant anywhere in Maryland. No one has heard the phrase "excuse me", or "please".
Maybe it is your area, the two I am in the middle of are kind, hardworking people. I get better customer service from Walmart than Radio Shack, Giant, Borders, Target was awful as far as customer serivice went, and numerous upscale stores.
No, not all of the checkout lines are open, and sometimes you have to stand and wait. Have you had to do this at Giant?? Yes.
Using the self checkout is a blessing.
Walmart participates with many charities. It opens it's doors and allows many to enter. Due to the high volume of customers, the charities are highly visible and the much needed gifts, and money are recieved.
Okay, I am not touching religion...
Yes, Walmart employees steal, just like employees steal from other places of employment, is that really an issue here?
Music blocked?? Walmart has been known to block the sales of more than one or two artists. So, Target and Garth Brooks??
In this type of business, what employee has not been treated like trash by one customer or another??
Whoever wrote that Target is out of the way, is correct. I find the parking difficult, and the store is too big for the amount of items it carries.
No, I do not agree with all of Walmarts beliefs. It drives me nuts when I find a product I like and poof it is gone.. oh well.
That is why there is CVS, Giant and other places to go to. Walmart is not my one stop shopping. I won't give any store that much power.
Walmart is needed in the community now. It is established and people depend on their jobs there to live and survive.
In one aspect, Walmart paved the way for other retailers to come in once the areas economy was stable enough to handle more. It has and it is holding.
Yes, there are many aspects of Walmart that are being challenged. Pay, treatment of employees, it's way of obtaining products to sell, and it's image.
Many times I hate the place, and other times I am grateful it is there, and I can afford to purchase what is needed.
Hell, The Gettysburg store is back to being open 24 hours. It was closing at 11 pm.
Each store has it's problems, when you are honest enough to look at them all with an open mind.
Giant in Gettysburg, relocated near Walmart. It refused to sell the old building for over 8 years to anyone that could compete with them. Finally this year, they sold the building and ground to Rite Aid.
Now, think about this. In the area Giant was..is considered a fairly poor area. People depended on Giant to walk to. When they left, they left behind a whole host of people and an angry community. They moved to the outside of town. You had to drive to get there.
Dollar General stepped to the plate, now carrying more food and put in freezers and refrigerators to accomdate these people.
Enough said. I don't sit on my high horse and preach one way or the other about the store.
This store is like a person, there is good and bad..
10-30-2006 @ 9:32PM
Frank Blair said...
I will pay more at Target rather than shop at WalMart
The French may have very bright backup lights on their Tanks but they are better than the world outlet store for China WalMart or ChinaMart
10-30-2006 @ 9:28PM
Ron said...
Target should buy Wal mart out , Everything from wal mart is made real cheap , no matter what is , it doesn't last long , target stores are a lot better .
10-30-2006 @ 9:30PM
June Kennedy said...
I do not shop at Target or Walmart. I quit shopping at Target long ago, because of their anti-Christian stand. Walmart recently made the same decision, so I no longer shop there either. Very sad too, because they used to support families.
10-30-2006 @ 9:29PM
Chad Pennington said...
I am happy to pay more money on products and shop at Target. The aisles are wide and free of clutter and you never have to wait in long lines. Every Walmart store I have entered is filthy and you can hardly pass through the aisles because they are jam packed with merchandise. You also grow old waiting in their long lines. Sorry Walmart I will go out of my way to shop at a Target. Customer service and cleanliness beat out pricing any day in my book.
10-30-2006 @ 9:30PM
Mohammed A.Khan said...
I love walmart buying from cloths to pricriptions and manymore walmart is the place to be.I went to Target store also but the things I have found with better price was walmart.Nobody is perfect anyway eventhough I found walmart is perfect place for shopping.For overall shopping experience walmart is the place.
10-31-2006 @ 6:11PM
Santa Gentile said...
I have already written to Wal Mart telling them of my displeasure at them for promoting the homosexual causes. They should stay out of women's causes and minority causes and concentrate on serving their customers.