Wal-Mart downsizes its stores
The retail giant turns to small and midsized buildings in an effort to draw more US shoppers.
The company still runs the giant, sprawling supercenters that we're familiar with. But now it's opening more midsized stores under the Walmart Market name. They're about the size of an average supermarket.
Wal-Mart already has 185 such markets and wants to open 90 to 100 more by January. That total will ramp up to 300 by fiscal 2013, the company said.
And Wal-Mart is getting even smaller with Wal-Mart Express, its answer to the dollar stores that have been stealing its business. Wal-Mart Express stores get you in and out fast, with milk, eggs, a pharmacy, check-cashing services and gasoline pumps.
Hear what Wal-Mart executives said to reassure shareholders about its sales in the following video.
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All of these moves are designed to reverse a sales slump in the U.S. that has lasted for eight straight quarters. Wal-Mart has made some bad decisions in the past few years as the recession hit, and it has been desperate to reverse its momentum.
Wal-Mart shares fell more than 1% Wednesday to $52.23. Shares have spent much of the past year in the $52-$55 range.
The economic downturn sent more shoppers to dollar stores and supermarkets. Those who still went to Wal-Mart stopped buying the more profitable items, including furniture and clothing, and focused on household items and other basics.
Wal-Mart cleared out the clutter in its stores, removing items in an effort to spruce up and appeal to wealthier shoppers during the recession. But that backfired with its core base, which wanted more selection and value.
So what do you think? Will a smaller Wal-Mart bring shoppers back to the company?
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But better service might.
Sam Walton built Walmart on several basic ideas in the following order:
1. Happy motivated employees
2. Personal caring customer service
3. One stop shopping
4. Eliminating the middle man by buying direct and becoming his own distributor
5. Good quality made in America products
6. Competitive pricing.
His heirs have changed a few things in the following order:
1. Increase next quarter profits
2. Pare down labor costs
3. Decrease cost of sales by purchasing cheap overseas
4. Don’t worry about the customers, they have no other place to shop
5 Crush the competition by any means possible
The heirs plan seems to be working well doesn’t it? At one time Sears was the unchallenged and invulnerable retail sales company in the world. Their arrogance brought them down as will Walmart’s.
Walmart was banking on everyone wanting artificially cheap imports from China forever. As for the dollar store "stealing business away from Walmart" it is called a free market . Maybe if Walmart didn't spend so much money putting up new stores. they could pay their employees better wages, resulting in better quality and productive employees. Then as people started to see that the company actually cared about something besides its' profits, then they could increase their stores and people would shop there more. I quit going to Walmart 7 years ago because they tried to come into this area and lied, cheated and bankrupted our small rural township with law suits and zoning hearing. they took it all the way to the state court, but where unwilling to set aside watershed land, so they lost the case.
Yes, it is true, you don't NEED Wallmart. Try shopping at your local mom and pop retail store or
buy from a company who takes better care of its' employees. Don't think that is possible,
what did everyone do before Walmart. I think we all did just fine without them.
I feel that the devil got to Wal-Mart. More & Profit Money ! GREED! The Lord gives and takes away. How about all the China made products. . . mmmmmmmmm . . Back in the days Wal-Mart was a USA Made company. I really am looking for that good ole American made product. How about you? We are supporting China and other countries and our USA is going to the . The Dollar stores are also China. Come on everyone.
?Wal-Mart are you going to come back to the good ole USA? How about a new Wal-Mart with USA Made Only?
The "super powers" such as Wal-Mart are 1 of the biggest problems with America right now!They buy and sell products that are made somewhere else china mostly.Their "slogan"used to be MADE IN U.S.A.Not so much anymore.I used to buy grocerys there to save money.Seems they still are a little cheaper than most stores and their brand isn't half bad but goto another store and buy the same product....say soft batch cookies.Compare the quality of both from Wal mart and from Ingles or wherever.The ones from Wal mart are burnt broken and not soft.They are cheaper....but not as good!It is like they are buying "seconds" or something I dont know.Since I have realized this I dont shop there much anymore.Me saveing a few dollars is NOT worth geting products that are not as good and most definitly not worth puting american workers out of work!
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Markets in Asia ended on a mostly higher note. The Reserve Bank of New Zealand hiked its key rate 25 basis points to 3.50%, as expected.
- In economic data:
- China's HSBC Manufacturing PMI jumped to 52.0 from 50.7 (consensus 51.0)
- Japan's trade deficit narrowed to JPY822 billion from JPY909 billion ... More
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