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 1 of 22)
10-30-2006 @ 4:54PM
Billy Martin said...
I still say that overall with Wal-Mart being cheaper overall on prices,surely all classes enjoy saving money overall when it finally comes down to it. Maybe? Are they really flocking to Target? I guess they are according to all reports.
Billy F. Martin- Henderson,Tex.
10-30-2006 @ 8:11PM
linda said...
I am not usually a Walmart shopper but, popped in
a local store this past weekend. It was so crowded
with shoppers! Find it hard to believe Walmart is
losing business!
10-30-2006 @ 8:16PM
Paul Darden said...
I will definitely stick with Walmart and not buy at Target since I understand they are owned by A French firm, and why would I support the French when they never support the U. S., or are even grateful for the help we have given them over the years.
10-30-2006 @ 8:17PM
Paul Darden said...
I love the Walmart Supercenters and they are always crowded and this gives you a chance to shop, not only for groceries, but other things as well, and then stop for a cup of coffee at McDonald's.
10-31-2006 @ 9:14PM
Elaine said...
Support your small local businesses not big corporations
watch the DVD - the high cost of low prices -
10-30-2006 @ 8:24PM
Mary Glenn said...
I am and always will be one of those who are loyal to target. The wheels are going to fall off the Wal-mart chain soon enough. I do not feel that it is technically target who is taking customers...I feel that it is Wal-marts demons that are scaring people away. Low prices or not...they tend to dable in dirty business. All good things have to come to an end sooner or later..No?
10-30-2006 @ 8:18PM
Lei said...
I avoid Wal-Mart because of the crowds, the rude customers, and how their business practices have changed since Sam Walton isn't heading the company anymore. I love Target. Its fashionable, affordable, and you don't have droves of rude people bumping into you. I'll pay more for peace of mind.
10-30-2006 @ 8:21PM
Rhonda said...
This does not surprise me. Unless I really need something and there is only a Walmart in town, I always go to Target.
10-30-2006 @ 8:21PM
darin w said...
I really don't care about upscale anything..like most people who work and live in this state(florida)we don't make much money and every dollar counts, so upscale shopping is out of the question...just show me the bottom line and keep it low...they opened a target right next to walmart in my home town area....and now a yr later..its a miracle they are still in business..the lot is so empty(it may make a difference that the target is not a super target)...I have even worked part time at both stores....target treats their employees much better than wally world hands down(big league conflicts with managers about scheduling and taking you from one area to work another...usally the crap jobs like recieving, etc)..will work at Target again again during the holiday season for extra christmas cash...and the employee discount doesn't hurt either)
10-30-2006 @ 8:22PM
Ann Lusk said...
They should not do away with Walmart. Yes Kmart is not such a great place but I do think Target is ok and they are higher than Walmart. Walmart needs to keep the lawaway dept and fabrics too. Getting rid of these two I think will hurt them. I love Walmart and go there about 8 times a week. That is so true. Bury me at Walmart so my family will come visit.
10-30-2006 @ 9:03PM
Tracy said...
I never shop at the Wal-Mart near me.
It's dirty, the lay out is confusing, and there's never enough help any time I've been there.
I always shop at the SuperTarget near me.
It's clean, easy lay out, and I can find things there that look like they came from Pottery Barn or Crate & Barrel for a 1/4 of their price.
The clothes at Target don't twist and get out of shape after one wash, as I've had happen when ever I've bought anything at Wal-Mart in the past.
Target is the best.
10-30-2006 @ 8:25PM
Lisa said...
I really dislike Walmart. I refuse to shop there. I was a loyal customer up until about 6 months ago. I finally had enough of them not having enough cashiers. It's impossible to just run in there. Here in Central NY they only have about 3 cashiers on and your lucky if they have an express aisle open since they have self checkouts. Those are usually filled with people buying half of the store. Try going there after work and you will be in line for a half hour. Not to mention they don't double coupons. There prices here aren't that much cheaper. I will gladly pay 5-10 cents more for better customer service.
10-30-2006 @ 8:25PM
robert Ratliff said...
I love Wal-mart because they have everything I need under one roof, plus the convience of 24-hour shopping. Since I work late at nights I find it really convenient to get what I need when other stores are closed. Also I like the security truck going around the parking lots looking for criminal activities.
10-30-2006 @ 8:25PM
Sarah said...
I shop at Target because Walmart sensors their CD's, and forces artists to alter their work. They don't even have the unsensored ones available. It just doesn't seem right.
10-30-2006 @ 8:27PM
amy said...
wal-mart is doing away with layway that going to hurt a lot a people who have to budget there money . a lot of people i talk to is going to change to other stores for there christmas shopping . kmart still has layway and sell the same thing at a lower price .
10-30-2006 @ 8:30PM
Tsand said...
I hope walmart continues to thrive .Alot of us here in the south will not shop at target because they do not support our veterans 'the men and women that fought for our country to keep us free.Garth Brooks refused to put his music in Target stores..Target supports issues that are not appropriate for some of us .I love shopping at Walmart ,I can get everything in one trip .Target charges ridiculous prices for the same exact items that walmart sells..Target won't get my money! GO WALMART -SAM WALTON WOULD BE PROUD!
10-30-2006 @ 8:29PM
anna said...
I love Walmart! Its funny how all these people down walmart but yet it is so needable! Target is great and all but they are more expensive, less variety of food, and overall its not as convenient. If Walmart were to loose business we would be in trouble. Lowes Foods, Harris Teeter, Food Lion, etc... are too expensive in their groceries. And of course going to the drug stores for film is more expensive and especially driving from here to there wastes gas. Walmart is excellent. I think its great that you can go there and buy food, clothes, prescription, etc... all in one place.
10-30-2006 @ 8:30PM
Rocky Williams said...
Walmart's sales are down because Christians are silently boycotting Walmart for their recent support of homosexuals.
10-30-2006 @ 8:44PM
Linda said...
Cheaper does not always mean better - I love to save a few $ but when I have to replace things two months after purchased - it is not worth to me to go to Wal-Mart and deal with the dirty stores, out of stock sales items and sales associates who think they are doing me a favor to wait on me. Working two jobs - I simply don't have the time to pay the game!! Give me Target anytime - at least their Superstores aren't forced on me because of their billions and the attude that I am going to be in your neighborhood whether you like it or not - There are just too many Wal-Marts. Target personnel have been helpful and if not knowing the answer, quickly found someone who could. A few $ saved isn't worth is when the item is replaced 2 months later.
10-30-2006 @ 8:45PM
Laura said...
Wal Mart may be the have everything, super cheap, buy it here palace, but I would encourage everyone to dig a little deeper into their unfair business practices. Find someone who has tried to sell a product to Wal Mart, someone who has worked there, or someone who has had to shut down their business because of Wal Mart. I prefer Target or Kmart, but I always try to BUY LOCAL!!!!!!!! SUPPORT YOUR FRIENDS, NEIGHBORS, AND FAMILY!!!! DON'T LET WAL MART PUSH THEM OUT, TOO!!! Really, what is a few extra dollars if it helps out your local economy????