Walmart's Project Impact: A Move to Crush Competition

[Appaholic]

Walmart loves to shock and awe. City-size stores, absurdly low prices ($8 jeans!) and everything from milk to Matchbox toys on its shelves. And with the recession forcing legions of stores into bankruptcy, the world's largest retailer now apparently wants to take out the remaining survivors.

Thus, the company is in the beginning stages of a massive store and strategy remodeling effort, which it has dubbed Project Impact. One goal of Project Impact is cleaner, less cluttered stores that will improve the shopping experience. Another is friendlier customer service. A third: home in on categories where the competition can be killed. "They've got Kmart ready to take a standing eight-count next year," says retail consultant Burt Flickinger III, managing director for Strategic Resources Group and a veteran Walmart watcher. "Same with Rite Aid. They've knocked out four of the top five toy retailers, and are now going after the last one standing, Toys "R" Us. Project Impact will be the catalyst to wipe out a second round of national and regional retailers."
http://news.yahoo.com/s/time/20090909/u ... 9192069800

And they'll do it.....Amercians loooove $8 jeans.....

[dbackjon]

Then they Jack up the prices.

[Chizzang]

I've completely changed my opinion about Wal-Mart...
I have come to accept that it is what we deserve - it is our national destiny...

One Store to rule them all

One Ring to rule them all,
One Ring to find them,
One Ring to bring them all
and in the darkness bind them.

[Wedgebuster]

I love Walmart, 'specially in the summer time when all the women with three butts wear their shorts while shopping there.

[bandl]

What's the problem here? This is capitalism at its' finest. Exactly the opposite of what Obama stands for, right? How can anyone be against this?

[danefan]

What's the problem here? This is capitalism at its' finest. Exactly the opposite of what Obama stands for, right? How can anyone be against this?

Whether people will admit it or not - Walmart is the face of American capitalsim.

[OL FU]

What's Wal-Mart suppose to do, raise their prices so Toys R Us can sell more?

If they are using pricing below cost to monopolize the market, then the government should go after them. but honestly isn't the purpose of Wal-mart to gain as much market share as possible?

[danefan]

What's Wal-Mart suppose to do, raise their prices so Toys R Us can sell more?

If they are using pricing below cost to monopolize the market, then the government should go after them. but honestly isn't the purpose of Wal-mart to gain as much market share as possible?

Yes, but I find their business practices to be unethical. Their entire business strategy centers around putting other businesses out of business - not distinquishing themselves from their competitors. They build new stores, set prices very low for 2-5 years essentially making little or no profit and when they have eliminated the small shops (which do not have the saved capital to price the same) they raise the prices back to what their competitors used to charge.

While not technically illegal - its immoral and unethical, IMO.

[citdog]

it is immoral to be able to purchase a shotgun, a set of tires, and a lobster in the same store.

[bandl]

it is immoral to be able to purchase a shotgun, a set of tires, and a lobster in the same store.

MacGyver would argue against that.

[dbackjon]

it is immoral to be able to purchase a shotgun, a set of tires, and a lobster in the same store.

MacGyver would argue against that.

If macgyver had access to all that he could rule the world

[Chizzang]

What's Wal-Mart suppose to do, raise their prices so Toys R Us can sell more?

If they are using pricing below cost to monopolize the market, then the government should go after them. but honestly isn't the purpose of Wal-mart to gain as much market share as possible?

I agree completely...
Wal-Mart is simply a reflection of our American culture and the face of American business

it is exactly who we are

[Cap'n Cat]

What's Wal-Mart suppose to do, raise their prices so Toys R Us can sell more?

If they are using pricing below cost to monopolize the market, then the government should go after them. but honestly isn't the purpose of Wal-mart to gain as much market share as possible?

I agree completely...
Wal-Mart is simply a reflection of our American culture and the face of American business

it is exactly who we are

Reppies to Chizzie.

As with the Conky, greed-fueled financial collapse, Wal-Mart is capitalism gone awry.

You youngsters still in college, take a semester or two of Chinese and study like a motherfvcker. You'll be better off than most if you can communicate effectively with our masters-to-be. Maybe you can get a contract to construct the Economic Reeducation Camps.

[OL FU]

What's Wal-Mart suppose to do, raise their prices so Toys R Us can sell more?

If they are using pricing below cost to monopolize the market, then the government should go after them. but honestly isn't the purpose of Wal-mart to gain as much market share as possible?

Yes, but I find their business practices to be unethical. Their entire business strategy centers around putting other businesses out of business - not distinquishing themselves from their competitors. They build new stores, set prices very low for 2-5 years essentially making little or no profit and when they have eliminated the small shops (which do not have the saved capital to price the same) they raise the prices back to what their competitors used to charge.

While not technically illegal - its immoral and unethical, IMO.

Is that what they do? Certainly Wal-mart drives small businesses out of business. But they typically get competition from other discounters, Costco, Target, etc. However, most small business owners I know that would compete with their product lines find niches that Wal-mart can't compete in. Specialty products even customer service if the product line is right. I am sure they are in some markets that don't have that competition but they vast majority of the sales come from markets where they have competition. Their strategy comes from enormous buying power, just in time inventory systems and selling based on razor thin margins. It is amazing how much money you can make on 3% margins when you sell by volume. I understand the concern but I don't think it is unethical.

[OL FU]

Yes, but I find their business practices to be unethical. Their entire business strategy centers around putting other businesses out of business - not distinquishing themselves from their competitors. They build new stores, set prices very low for 2-5 years essentially making little or no profit and when they have eliminated the small shops (which do not have the saved capital to price the same) they raise the prices back to what their competitors used to charge.

While not technically illegal - its immoral and unethical, IMO.

Is that what they do? Certainly Wal-mart drives small businesses out of business. However, most small business owners I know that would compete with their product lines find niches that Wal-mart can't compete in. Specialty products even customer service if the product line is right. But they typically get competition from other discounters, Costco, Target, etc. I am sure they are in some markets that don't have that competition but they vast majority of the sales come from markets where they have competition. Their strategy comes from enormous buying power, just in time inventory systems and selling based on razor thin margins. It is amazing how much money you can make on 3% margins when you sell by volume. I understand the concern but I don't think it is unethical.

I still can't tell the difference between the edit and quote button

[mainejeff]

I guess I'm in the liberal/Democrat minority when it comes to Wal-Mart.......I like shopping there and I don't see what the big deal is....??? I've already noticed the de-cluttering of my local Wal-Mart and it makes shopping there much more enjoyable (tolerable). A corporation is a corporation whether it's Wal-Mart, K-mart or whatever. Mom and pop couldn't keep the candy bars dusted off or keep toothpaste in stock.......so they got what they deserved. Yes, that sounds cold.......but true.

[Chizzang]

I agree completely...
Wal-Mart is simply a reflection of our American culture and the face of American business

it is exactly who we are

Reppies to Chizzie.

As with the Conky, greed-fueled financial collapse, Wal-Mart is capitalism gone awry.

You youngsters still in college, take a semester or two of Chinese and study like a motherfvcker. You'll be better off than most if you can communicate effectively with our masters-to-be. Maybe you can get a contract to construct the Economic Reeducation Camps.

Interestingly enough Cap'n (and I think you'll agree)
Another one of the great things about Wal-Mart (and their are too many to count) is that foreigners for some reason are not interested in working there...

Wal-Mart: American jobs for Americans..!!!
minimum wage - nobody works over 30 hours so you don;t get health care benefits - dead end positions

IT"S PERFECT for American high school graduates

[Col Hogan]

I agree completely...
Wal-Mart is simply a reflection of our American culture and the face of American business

it is exactly who we are

Reppies to Chizzie.

As with the Conky, greed-fueled financial collapse, Wal-Mart is capitalism gone awry.

You youngsters still in college, take a semester or two of Chinese and study like a motherfvcker. You'll be better off than most if you can communicate effectively with our masters-to-be. Maybe you can get a contract to construct the Economic Reeducation Camps.

Hey, my company already has that contract locked up...

[JMU DJ]

Reppies to Chizzie.

As with the Conky, greed-fueled financial collapse, Wal-Mart is capitalism gone awry.

You youngsters still in college, take a semester or two of Chinese and study like a motherfvcker. You'll be better off than most if you can communicate effectively with our masters-to-be. Maybe you can get a contract to construct the Economic Reeducation Camps.

I forget who it was, but someone was talking about Obama's address to the students of America yesterday and what he was probably going to talk about. They said the main focus of his talk would probably focus on something like "Study hard, don't succumb to peer pressure and learn Chinese."


... on another note, I haven't been to a Walmart in three years. I've found food cheaper in the grocery stores, farmers markets have better fruits and veggies than both, download my music from Itunes, and I get all of my clothes for practically free... I have no need for Walmart.

[OL FU]

Reppies to Chizzie.

As with the Conky, greed-fueled financial collapse, Wal-Mart is capitalism gone awry.

You youngsters still in college, take a semester or two of Chinese and study like a motherfvcker. You'll be better off than most if you can communicate effectively with our masters-to-be. Maybe you can get a contract to construct the Economic Reeducation Camps.

Interestingly enough Cap'n (and I think you'll agree)
Another one of the great things about Wal-Mart (and their are too many to count) is that foreigners for some reason are not interested in working there...

Wal-Mart: American jobs for Americans..!!!
minimum wage - nobody works over 30 hours so you don;t get health care benefits - dead end positions

IT"S PERFECT for American high school graduates

Most foreignors that come here to make a better life. Most are ambitious, intelligent and stubborn as hell about success. Even our friends from south of the border (who get such a bad rap) are the same when it comes to a better lie it's just a better life than what they have in Mexico means they don't mind working for $10 bucks and hour as a day laborer.

PS, the only reason Wal-mart isn't full of illegals is because they know they are too high profile and would constantly get busted.

[Chizzang]

PS, the only reason Wal-mart isn't full of illegals is because they know they are too high profile and would constantly get busted.

and you can make more money mowing lawns... they don't want to work at Wal-Mart because there is no advantage to working there...

Less pay
Crappy hours
No health care options or benefits
Uptight corporate environment
Life sapping experience

Only American kids have been duped into thinking that's what they are supposed to want... after they eek through high school

[OL FU]

PS, the only reason Wal-mart isn't full of illegals is because they know they are too high profile and would constantly get busted.

and you can make more money mowing lawns... they don't want to work at Wal-Mart because there is no advantage to working there...

Less pay
Crappy hours
No health care options or benefits
Uptight corporate environment
Life sapping experience

Only American kids have been duped into thinking that's what they are supposed to want... after they eek through high school

That too

[Cap'n Cat]

Learn Chinese.

[ASUG8]

Screw Walmart - I've watched textile employees lose their jobs because their American employers (trying to keep jobs here) had to slow labor costs and increase productivity to stay afloat. In the meantime, these families couldn't afford to buy the American brands and bought from Walmart, which is keeping the Pacific Rim afloat with substandard wages. It became a a vicous cycle - Americans couldn't (or wouldn't) afford American products, demand for US products fell, and a lot of these places closed up shop. Same thing is happening in furniture with Ashley furniture and Rooms to Go. It's very hard to walk the high productivity/low labor cost per unit/high product quality tightrope. American quality fell off and people became shoppers for low cost - the Chinese can build in more quality when their wages are a fraction of the average US worker.

I'll stumble into Walmart once they take down ALL their competition, but not before. I'd rather pay more to support the local folks than some mindless bureaucracy in BFE Arkansas.

/rant

[Chizzang]

Screw Walmart - I've watched textile employees lose their jobs because their American employers (trying to keep jobs here) had to slow labor costs and increase productivity to stay afloat. In the meantime, these families couldn't afford to buy the American brands and bought from Walmart, which is keeping the Pacific Rim afloat with substandard wages. It became a a vicous cycle - Americans couldn't (or wouldn't) afford American products, demand for US products fell, and a lot of these places closed up shop. Same thing is happening in furniture with Ashley furniture and Rooms to Go. It's very hard to walk the high productivity/low labor cost per unit/high product quality tightrope. American quality fell off and people became shoppers for low cost - the Chinese can build in more quality when their wages are a fraction of the average US worker.

I'll stumble into Walmart once they take down ALL their competition, but not before. I'd rather pay more to support the local folks than some mindless bureaucracy in BFE Arkansas.

/rant

Of course my heart is with you... I used to argue that exact point over at AGS weekly

But we are who we are - Wal-Mart is the American way - it is by definition and example 100% America

It's what we've become, hell it's what all American corporations dream of being... I've come to accept it