You may have noticed that Wal-Mart (NYSE: WMT) has been struggling a bit of late. But not to worry, the company has a strategy to get things back on track. It is going to focus on low prices.
According to the Associated Press, Wal-Mart launched a new ad campaign on Wednesday, emphasizing how consumers can save money by shopping at the stores. This comes in the wake of the company's failed foray into fashion. The tag line for the campaign will be "Save Money. Live Better." I shudder to think how much an advertising firm was paid to come up with that one. If her private life is any indication, you have to think Julie Roehm could have come up with something edgier.
Stephen Quinn, Wal-Mart's chief marketing officer, said this in a statement: "The new advertising tells the same story we have told since day one, how we are working hard to save people money so they can live better."
But don't people already get that Wal-Mart can be a good way to save money? I mean, I would hope that people aren't shopping at the stores for the ambiance and customer service! The reason that Wal-Mart tried the whole Metro 7 line was that the "Always low prices. Always." story was no longer driving strong growth in the United States. The Metro 7 venture has failed, but that doesn't mean a new focus on Wal-Mart's one redeeming factor (even if it is a big one) will revive growth.
[photo ILoveMyPiccolo]











Reader Comments (Page 1 of 16)
9-13-2007 @ 3:58PM
Chris said...
I am typically completely on-board with your posts Zac, but I have to disagree with you on this one. I think my concern comes down to one particular word you use: "edgier." Exactly how edgy is Wal-Mart's target audience? I'll agree, the slogan wouldn't work for a company like Pac Sun or Land Rover, but I think that the slogan effectively conveys the two primary components of Mal Wart's brand: low prices and comprehensive ("life-oriented") inventory. And while the idea of attracting a sexy new, edgy, cosmopolitan audience is exciting, it's simply not the position for many traditional brands such as Wal-Mart. The point: why would Wal-Mart narrow their focus to edgy if their bread and butter is conventional? Why would Wal-Mart turn its back on its current (huge) clientèle, just to grab niche, progressive audiences (who, truth be told, are also shopping at Wal-Mart)? For what purpose would their marketers forgo their campaign of "Wal-Mart can be a good way to save money"? New and different is not always right-you suggest this yourself when you allude to Metro 7.
9-19-2007 @ 2:10PM
Houcasey said...
I disagree that Wal-Mart has cheaper prices. Once in a while I shop at the Wal-Mart Super Center because with the price of gas these days, I can get pretty much everything I need at one place but I don't find that my groceries are any cheaper there than at Kroger or Randall's. Store brand products are cheaper but brand names are the same or more and their produce selection is terrible.
9-19-2007 @ 2:10PM
Martin Bingham said...
I was at a Walmart in Roanoke. There was a fire truck and ambulance outside. They were attending to a lady in a wheel chair inside the store. I was talking with an employee and she told me she(the employee) has had 35+ heart attacks in that store.
9-19-2007 @ 2:23PM
Melissa said...
I don't agree that Wal-Mart has low prices at all anymore. I shop there regularly for my necessity based items because it is next door to my grocery store and convenient, but I can find many of things that I get there for less at the Target that I stop in for quick items here and there. The worse thing that Wal-Mart ever did was get rid of layaway. I think they will end up losing more money in the long run due to that poor decision.
9-19-2007 @ 2:23PM
Wallace Simons said...
I love your stores. I find your prices are great and I love the one stop shop concept. I also travel quite a bit in our motorhome and really appreciate the spacious parking lots, your attitude about allowing people to stop here overnight, and I have been happy with your selection of produce. It is amazing that in this great country we are actually taught by the liberal school environment to be against anything or anyone that is successful. These people are Walmart's greatest detractors.
9-19-2007 @ 2:23PM
gina said...
I personally do not care for Wal-Mart anymore after they terminated lay away- I used to do my kids Christmas shopping there and put it on lay away but they have did away with it and I prefer K-Mart now.
9-19-2007 @ 2:24PM
linda said...
First I have to say is that I don't know why walmart is blaming a slogan for their own failure because as Houcasey because they are not always the lowest prices and on top of that now they take away the layaway so how is it easier and cheaper to shop at walmart because the way I see it is yes maybe just maybe k-mart for instance sometimes may be a little more expensive than walmart and I use the term maybe they are but, they have layaway WALMART HAS BEEN GOING DOWN HILL SINCE THEY STOPPED LAYAWAY THEY JUST DON'T WANT TO ADMIT IT.
9-19-2007 @ 2:31PM
jim said...
They took away lay away, they no longer serve my needs!!
9-19-2007 @ 2:32PM
ida becker said...
walmart has gotten very sloppy lately...no help and if you speak to employees about how it is to work for them...ten out of ten say it is a terrible company to work for.
I am a constant shopper at walmart mostly because i buy a lot of dog food and find it cheapest at walmart. I guess the employees should know what its like to work there...maybe thats why walmarts are so disorganized.
9-19-2007 @ 2:32PM
jdogmyers said...
Wal-mart scuks!! How bout buying AMERICAN made and dont say that you cant find anything AMERICAN made, its out their just look for it. Show how bout showing your support for AMERICAN not China.
9-19-2007 @ 2:33PM
bri said...
Walmart is going down and the stupid idiots are doing it to themselves. They treat their employees like crap! Except the execs who are making outrageous amounts of money for doing nothing.
9-19-2007 @ 2:37PM
Joe said...
Same idea, they are just reminding people what they provide low prices thou on the better living don't know about that. They should stick to low prices because they are not getting money out of clothing unless they concentrate on work clothes or low priced professional clothing thats what they should conectrate on not trendy, or edgy because they are not that and they still need alot of work on the online shopping and local pick-up they damaged my order pretty bad but Wal-Marts customer service has never been great so kinda was not surprised.Over-all they should concentrate on low prices, bring back lay-a-way, due away with any new clothing concept ecept work clothes might not be trendy but sure would be profitable for them.
9-19-2007 @ 2:38PM
melinda evans said...
Wal mart's prices have gotten so out of hand. I can go to my local grocery store and buy things a lot cheaper than I can at Wal Mart. I tell everyone that WalMart's prices are ridiculious. I have to agree with the person that said WalMart did wrong by getting rid of layaway. That person is right they will lose business because of this especially at Christmas. I used to work for WalMart and I know there are lots of people that used the layaway there. They didn't just use it for Christmas either it was year round. Maybe if WalMart gets enough complaints they will open layaway back up.
9-19-2007 @ 2:39PM
terry said...
I have to agree with the others when they say wal-mat does not seem to be priced any better than other stores. The costomer service is the worst of any store in my town in florida. The store has lost it's vision of being a low price leader. I guess the stockholders at wal-mart are just like the other greedy stores. Sam Walton would be ashamed of what his kids have done with his once great legacy
9-19-2007 @ 2:40PM
marilynschoeman said...
I refuse to shop WalMart - I shop Target instead - I prefer the way they pay their employees and their
prizes are just as good if not better - I really resent the way WalMart tries to wipe out the small businesses so they are the only place left for people to shop at - I am thrilled if they are making a few less million than they want to - can't help but notice that they, their children and grandkids are always in the top ten richest people in the country
9-19-2007 @ 2:41PM
Aimee L said...
I have to say that I dis-like Wal-Mart but not on the grounds of someone telling me to think of them for any such reason. I dis-like Wal-Mart for the lack of Customer Service (you know the line that takes 1/2 an hour to get through), the awful produce and meat (that goes bad 2 days after you get it home), the fact that they squeeze out the little guy or force companies like Mattel to give them a specific price or they threaten to leave them, or for the fact that they litter our landscape with Empty buildings once they have a captive audience. I dis-like Wal-Mart because they are a Dishonest Company. One more comment before I step done from my soap box: Do you realize that you can find cheaper and higher quality clothes at Macy's when they have a sale? Check it out the next time they have a 3 day sale or whatever.
9-19-2007 @ 2:41PM
John Hemmerich said...
I like Wal-Mart, except the fact they pay more attention to the women's department in clothes, as the men's department is at times sloppy and packed together, whereas women's areas are more roomier, even though women do more shopping, so this is kinda biased....we men need more name brand clothes, more style underwears, and dress clothes.....
9-19-2007 @ 2:41PM
hiredpower said...
I love how those who think only anti-capitalist liberals are Walmart bashers, the biggest private importer of Chinese goods, while happily supporting the world's largest communist government.
9-19-2007 @ 2:41PM
KatAustin said...
WalMart, Meijer and Target, and no Kmart within 10 miles, layaway is a moot point.
But I will go to other walmarts, but I will never set food in the Carmel / Westfield, Indiana Walmart ever again.
Our vet wrote an Rx for prozac for our dog yesterday. After two years ann no improvemnt in her mental state, we felt it was time to try a differant route. TO make a long story short the pharm. refused to fill the Rx, because it was below her to fill an Rx for a dog.
9-19-2007 @ 2:43PM
d. hoffman said...
Wal-Mart prices are not always cheaper, just the
merchandise is always really cheap.
Wal-Mart sells the cheap and defective merchandise that stores like K-Mart and Target would not sell.
The CEO's get richer and the consumers loss again.
Nice Corporate philosophy, isn't it???