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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." (See 10 things to buy during the recession.)
Though that's bad news for many smaller businesses that can't compete, Walmart investors have clamored for this push. Despite the company's consistently strong financial performance, Wall Street hasn't cheered Walmart's growth rates. During the 1990s, the company's stock price jumped 1,173%. In this decade, it's down around 24% (Walmart's stock closed at $51.74 per share on Sept. 3). "Walmart is under excruciating pressure from employees and frustrated institutional investors to get the stock up," says Flickinger. (Read "Can Toys "R" Us Sell Toilet Paper?")
Originally posted by stevegmu
Circuit City went bankrupt because they fired all of their employees who had tenure, and hired kids whew knew nothing about their products, not because of WalMart. The strip malls, K-Mart, Ames, Jamesway killed mom-and-pop businesses long before WalMart came around. WalMart has plenty of competitors- Meijer in the MidWest, and BestBuy and Target all over the US. Those companies aren't going under- regardless of what WalMart does. I prefer to buy US-made products, so I don't shop at WalMart, but not everyone else can afford to do the same. They provide a valuable service- cheap products for those with little money.
[edit on 9-9-2009 by stevegmu]
Originally posted by Jessicamsa
Originally posted by stevegmu
Circuit City went bankrupt because they fired all of their employees who had tenure, and hired kids whew knew nothing about their products, not because of WalMart. The strip malls, K-Mart, Ames, Jamesway killed mom-and-pop businesses long before WalMart came around. WalMart has plenty of competitors- Meijer in the MidWest, and BestBuy and Target all over the US. Those companies aren't going under- regardless of what WalMart does. I prefer to buy US-made products, so I don't shop at WalMart, but not everyone else can afford to do the same. They provide a valuable service- cheap products for those with little money.
[edit on 9-9-2009 by stevegmu]
I remember Circuit City doing that. They fired all their long time employees and hired people for like minimum wage. People boycotted them over it if I recall.
I never shopped there anyway. Way too pricey.