So far, Wal-Mart Stores Inc. (NYSE: WMT) has performed admirably well in the rough economic environment facing the U.S. and global consumer. 2009 is being hailed as most likely being the worst retail year in decades, but that's not stopping the world's largest retailer from planning for growth and profit, regardless of the gloomy outlook.To assist in this, Wal-Mart will be using its low-cost approach (never a bad thing in a recession) as well as expanding its private-label product offerings in grocery and a few other areas to deliver the lowest-cost value to the extremely price-sensitive consumer. Compare this with lowered profit and revenue outlooks by just about every retailer in any industry and it's a pretty ambitious move by Wal-Mart. However, with the power it has over the vendor landscape and the U.S. consumer, Wal-Mart can turn 2009 into a successful year.
The retailer did indicate that it wants to attack the consumer desire to stay home to eat and entertain as a reason for expanding its store brands and -- at the same time -- continuing to keep prices low and even lowering them more. Wal-Mart will undoubtedly pressure brand-name suppliers to better wholesale prices at the same time it expands its Great Value brand to actually enhance its revenue and profit within its store brands. Can Target Corp. (NYSE: TGT) respond with a similar -- or better -- plan? If not, Wal-Mart will be eating its lunch throughout 2009.
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Reader Comments (Page 1 of 1)
2-26-2009 @ 12:43PM
roudy11z said...
I just read this and I will bet $50 toward any charity that Wal-Mart will come out on top in '09. Maybe not by much but more than the others. Promise.RoudMan