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When I lived in Southwest Virginia, my house was about a mile from a Wal-Mart Supercenter. Although I had shopped at Wal-Mart (NYSE: WMT) for years, the convenience of the big store made it into my go-to place for everything from oil filters to rutabagas. I became a Wal-Mart junkie.
One of the things that I quickly noticed about the Squalor Mart was the fact that it is a perfect example of capitalism in action. In my years of shopping at the store, I noticed that obscure products would show up regularly. Sometimes they'd stay, sometimes they'd leave; it all depended upon how well they sold. For example, when the area got a huge influx of Latin Americans, the store dedicated an entire row to dried chilies, beans, hot sauces, tortillas and whatnot. Similarly, as more and more yuppies began frequenting the store, I noticed a definite spike in organic convenience foods. In both cases, Wal-Mart offered better prices (and better service) than the small stores that specialized in these obscure items.
Wal-Mart's problem lies not with what it can offer, but with what it can't: intimacy and a small scale. This, of course, is why many areas have fought so hard to keep Wal-Mart out. They don't want to lose their cute little neighborhood stores to the big, bad capitalist behemoth, which leads to an inevitable question: can Wal-Mart, the ultimate superstore, offer a shopping experience that is anathema to its time-proven formula?
To a certain extent, Wal-Mart has already done so with its "Neighborhood Market" outlets. At roughly 40,000 square feet, these stores are about 20% the size of the ubiquitous supercenters, and are designed to cover the same product lines as a standard grocery store. Recently, the retailing giant began unveiling "Marketplace" stores. These shops are much smaller, and their focus is on fresh food, prepared meals and quick service.
On the one hand, Wal-Mart Marketplaces could definitely fill a niche that the monstrous supercenters can't. With their smaller size, reduced offerings and emphasis on service, they could provide a way for Wal-Mart to penetrate markets that have closed themselves off to the retailer. Moreover, there are no lack of harried purchasers eager to pick up good, fresh meals with a minimum of fuss. On the other hand, can a company that has made its mark with deep discounts and pave-the-earth warehouse stores really offer an intimate neighborhood venue?
My money's on Wal-Mart!
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Reader Comments (Page 1 of 1)
6-10-2008 @ 3:45PM
jrg said...
Squalor mart is right. Now that the country (US ) is reeling from under employment and a real lack of jobs these guys now can come into a market where they allready cleaned out the local guys, and of course take over the vacant stores left behind. Predatory capitalism at its best. We all suffer while the Walton family continues to amass a fortune that would make the robber barons of 2 centurys ago look like pikers. You may gush about how nice it is to save money on poison toys, poison food, poison clothing, but the real problem is unfettered predatory capitalism not free enterprises. The next step for the vampires at walmart is filling the conveience stores of this country with their logo, cheaper gas. HAH! We in this country need to start thinking about what is best for everyone not just the big I. walmart is all about greed, nothing is made here anymore, and your choices have been reduced.The bush years and walmarts growth have gone hand in hand to take the good times away from all of us . Saving money, no just putting your neighbors out of work is all that has been accomplished in the last 8 years.
6-10-2008 @ 8:49PM
Mike said...
Bruce:
According to Retailing Today it will be called "Marketside" and the first store will not open until late this year.
It is Wal-Mart's answer to Tesco's Fresh and Easy.
6-10-2008 @ 8:49PM
Bruce Watson said...
JRG-
Wal-Mart will always do exactly what it needs to do to separate the consumer from his buck. If the consumer expresses an interest in sustainable food, fair trade, and a reasonable workplace, then Wal-Mart will pursue all of those things. As it stands, however, Wal-Mart is reflecting the desires and prejudices of its customers. If that reflection is unappealing to you, Wal-Mart isn't your problem; society is.
6-10-2008 @ 8:51PM
Bruce Watson said...
Mike-
Thanks for the info; it seems the Financial Times needs to work on its precision!
6-11-2008 @ 11:18AM
roudy11z said...
I think Bruce in #3 comment said all that needs to be said concerning WMT. They are good for us lower income people. Thanks WMT and the Walton family!!
Roudman
6-11-2008 @ 6:32PM
Mike said...
I agree with Roudy11z, and I might add that Bruce is a refreshing change from the extremely biased Brian White. I look forward to reading more from Bruce.
6-11-2008 @ 6:33PM
Bruce Watson said...
Mike and Roudy:
Thanks for the comments! As someone who relied on Wal-Mart for quite a few years, I'm not really able to bite the hand that literally fed me. Given how strapped the average family is, Wal-Mart is starting to become a necessity!