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The other side of Wal-Mart's new strategy for consumer targeting

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Wal-Mart's U.S. sales Chief Eduardo Castro-Wright recently said that the retailing giant was going to being targeting specific customer demographic groups in its stores in an attempt to market in a more customized and personable way to its core base of consumers. Although I will believe that when I see it, Wright said that the process would take about 24 months -- a time period I can't believe based on the sheer number of Wal-Mart stores and the incredible undertaking to get this rather-large show on the road.

But, will abandoning its one-size-fits-all approach be the downfall of the company? Ok, that may be a little bit melodramatic, but Newswise talks about this very prospect, and I found the idea intriguing. Wal-Mart's IT, logistics and merchandising systems were designed for a fragmented and shotgun approach to selling and merchandising the same goods in a "cookie cutter" type of way across the nation.

As Wal-Mart has found out, though, this approach has not worked well in overseas markets, which did not acclimate to Wal-Mart's global one-size-fits-all store approach. Quite the contrary, in fact, and so much that it closed up shop in Germany and moved out. International markets were probably a harbinger on what Wal-Mart was soon to face here in the U.S. as it tries to stoke growth and draw more customers into stores.

So, can Wal-Mart radically change the way it merchandises its inventory as it targets specific groups like it's never done before? Is a rather-large systems change in order for the global retailing giant to ensure this? My guess is yes, and with Wal-Mart's reputation for logistical expertise in the retail field, I would expect nothing less.

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Last updated: November 24, 2009: 02:53 PM

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