Wal-Mart (NYSE: WMT) has a new division and it expects the world from it. The company will launch its new small Marketside grocery stores this Fall. Job postings uncovered by the FT indicate that the world's largest retailer expects sales from the chain to eventually hit $10 billion with 1,000 stores in operation.
Wal-Mart insists that the new stores are simply a pilot project, but it is not likely that Wal-Mart would think small. For any new chain to help the company's revenue, sales would have to be very significant.
The new business may face rough going. Big chains like Kroger (NYSE:KR) and Safeway (NYSE:SWY) are likely to fight Wal-Mart every step of the way.
Wal-Mart was the first company into the big box discount retail business. The company was not only remarkably well-run under Sam Walton. It also had the advantage of being the "first mover" In the grocery business; being late to market is a handicap.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 6 of 6)
8-09-2008 @ 5:54AM
dphvac said...
Wally world is great for things you don't need a long life out of... like kid's clothes that will be outgrown in 6 months, or diapers. I'm all for saving money where I can. They have the lowest prices I can find on DVDs. But, just like Costco, they're NOT cheaper on EVERYTHING! Check out the label on their meat the next time you shop there. If you read the fine print, you see that it has artificial color, flavor, and has up to 10% water added to it. Not to mention, "this meat has been irradiated for your safety". Maybe I'm naiive. Maybe they're the only ones who are really being honest about what you're buying. Maybe everyone does the same thing. Maybe not! I can buy Costco's extra lean hamburger ($2.69/lb), and I have to add oil to the pan when I fry it up (advertised at 10% fat). When I cook up the same amount of Walmart extra lean hamburger ($2.48/lb), I can drain the fat into a measuring cup (about 1+ cups from 3lbs of burger). Walmart advertises their burger at 12%-15% fat. While Wally-burger may make a juicier patty for the old grill, one has to wonder which burger is using "new math" to figure the fat content. Watch the labels and make your own decisions.
8-09-2008 @ 5:53AM
Da Babe said...
sassyjamiet....i work for walmart also, and they do not give performance raises after 90 days. only when u are first hired after that they are once a year. i have been with walmart for 7 years now and my pay is $15.65 per hour. they pay is fine, but they try to work you to death because they are so short of help constantly.
8-09-2008 @ 6:02AM
morrisonchubec said...
8-08-2008 @ 11:55PM
paul said...
If people would only do a little work, Walmart prices are not cheap. Actually it is a mind set that people have about thier prices,and they can be beaten.
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The prices can be beaten only if you are to lazy to bring it to the attention of customer service that they are being undersold. Wal-mart has always had the promise that they will not be undersold and in every WM that I have been in to they stand by it. Being from a military family I have seen my share of differnt WM's. Those of you who do not like WM do not shop there and save us all the agony of listening to your insessant whining.
8-09-2008 @ 6:11AM
GroceryGuy said...
Knowing the grocery business as I do, I know this is a bust for Walmart, as more locations with less staying power - store selling space and store room space - mean locations with higher prices, plus they will pay more to deliver to all those extra locations. They have gotten greedy, running below margin prices and making it up on items they shouldn't be - price on a gallon of milk, let's say - and their customers will pay it convinced that they are still saving money at Walmart. The grocery business is a High / Low price game for anybody to make their money, Walmart is just better at deceiving their loyal customers than anybody else. Funny thing about the market place, there isn't a giant out there yet it hasn't slayed, and Walmart will soon learn that lesson.
8-09-2008 @ 6:09AM
F M Richbourg III said...
There is a Wal Mart Super center near me, and I shop there for groceries often; however, I will not purchase anything there made in China. Actually, we should all boycott Chinese imports because the profits from their exports go largely to build up their military (Cosco is said to be owned by the Chinese military). Don't be fooled by what you have seen in the opening ceremonies at the Olympic Games. While they are threatening only Taiwan today, their ultimate goal quite clearly is to take control of us by nuclear blackmail. To our profound and everlasting disgrace, we are helping them finance that long range goal by purchasing their exports at Wal Mart and other discounters. That is fatally short sighted to say the least, and our blind political leaders by allowing and promoting trade with China have become complicit in the mega crime that will be our future national demise.
8-09-2008 @ 7:36AM
Dorothy Mills said...
I shop Wal-mart all the time, In conparison to other retail stores, this one Can't be beat, The prices are where I can afford them, and the Service I haven't had a problem with, every one has been nice to me. I am greatful to have Wal-Mart in my Community Sincerely Dorothy Mills
8-09-2008 @ 9:28AM
rachelg said...
If you don't like merchandise from China or other foreign countries, then you need to stop blaming Wal-mart and start blaming the government. Wal-mart doesn't give those companies tax breaks for outsourcing Uncle Sam does. I hate watching the news and hearing about companies closing their doors in the Usa because of financial difficulties, but a short time later they've moved to Mexico, or started up operations in China. I would gladly pay more for a product made in America, but it doesn't matter because as long as companies like Mattel can make Barbies in China for $.35 and pay those people very little to do it, that's the way it will stay. If Mexico would make companies pay it's people @ least minimum wage, then you might not have such an illegal immigration issue. But Government(anywhere) cares more for big business than for people. I also have to say, that I work for Wal-mart, and it may not be perfect, but the pay, benefits, & perks(discount, 401K/stock,stakeholders,etc.) are better than at many places I've worked before. And for the record, the product @ Wal-mart are the same as other place like Belks,etc. they just sell oodles more and if there is a problem it's not Wal-mart, it's the manufacturer, and P.S. they don't teach employees how to sign up for government aid---come on people that's just silly!
8-10-2008 @ 12:22PM
Kerry said...
Iraq just signed an oil deal with china. It appears from other news that China has found a good source of oil. We (supposedly) freed it up and are protecting it for them
8-10-2008 @ 12:25PM
Kerry said...
I'm just glad that China let us borrow all our money back.
8-11-2008 @ 3:09AM
stratasearcher said...
Pro's and Con's of Walmart: Less expensive on a lot of items, saving You a little money in a time when every dollar counts.
They bring in a whole lot of tax revenue to the cities that they move into, But does it counter the money lost by those businesses they drive out of town... who knows. They DO offer benefits to employees, although the quality and price of it can be argued since they are the biggest retailer in the world. Cons are that they seem to break a lot of labor laws according to the lawsuits on the news. Their merchandise is lower quality, from China mostly, that's why it is Cheaper priced. Since they are the largest retailer AND they import most things from China, Walmart IS contributing to the trade imbalance. However, that is a result of the day we live in, to a degree. Money makes the world go around... The love of money ... well that causes all kinds of problems doesn't it? Perhaps We as Americans have out priced Ourselves with our high standards, Pay and Benefits as well as Our greed? The Question is... When all the low paid Chinese worker are finally making our wages, then WHERE will You buy Your Cheap merchandise from?
8-14-2008 @ 2:29PM
Mr.G said...
The Wal-Mart bashers are hilarious.China Mart? LOL ..Most other stores carry the EXACT same products. DIRTY..There stores are just as clean as any other large chain of stores.Some of these stories are so sensationalized,they don't even resemble the truth anymore.
8-16-2008 @ 4:08PM
MIKE said...
What is everyone going to do when wal-mart takes over small businesses and rakes the consumer. If there are no competing businesses left they will dominate and control.
8-16-2008 @ 4:46PM
doc.k said...
Since I have never seen an Uno's that wasn't reasonably busy, I suspect that the financial downer it's on is due to the usual corporate executive greed that is prevelant in almost ebery American corporation today. The CEO/or owner extends the corporate line of credit beyond reasonable limits of healty business practice, draws an exhorbitant salary and bonuses--maybe even includes a few underlings (to keep them quiet) and soon the company is in the dumpster and workers are out of their jobs and their pension funds have been raped. Meanwhile, these sacks of greed live high off the hog the rest of their lives--- and the worse they bankrupt the company the bigger the reward they get out of it! And our government has no standards to ferret out these weasils for their criminal and immoral behaviour.
8-17-2008 @ 1:50PM
Scarlett said...
I love Wal Mart. We have on in Merritt Island, Fl, and in Columbia, MD...both are CLEAN, and prices can't be beat. They are perfect for people that need to watch the bottom line, and get the best prices. I can go there and pay a dollar less for the same box of cereal my local grocery store offers. Milk, Sausage, fabrics, paints, dog food....all less. They are clean and neat stores. Love them.
8-17-2008 @ 1:58PM
Love em said...
I can shop at Walmart and save on clothes, food items, garden, electronics, dishes, and you name it...People that complain are simply pretending they don't need Wal Mart. In this day and age, they can help a family make ends meet. You can get exactly the same product for less at Wal Mart. They force competition and lowers of prices at other stores. I LOVE Wal Mart...a Fan all the way.