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June 03, 2005
Same Store Sales
WalMart same store sales were up only 2.5%. Meanwhile, Target saw an increase of 5.1%. WalMart's executives believe it is because they don't have enough goods targeted to high end consumers, such as organic groceries. I believe it is because I personally (and I assume many others) hate setting foot in a WalMart store (politics aside) because it's like stepping into total disarray. The inside of the stores look like a bad high school cafeteria with uninviting lighting. Things aren't arranged that well, and this may be snobby of me, but there is just a lot of junk everywhere. I don't enjoy shopping there.
On the other hand, the problems that I have with WalMart are probably key elements that allow them to keep prices low and turn a profit. If they cleaned up their stores and made them look nicer, they may not be able to afford their current business model. I doubt some well to do person is going to decide to shop at WalMart because they have a few organic vegetables if the visual experience of shopping there doesn't improve. This may be what ultimately puts the brakes on WalMart's explosive growth.
Posted by Chris at June 3, 2005 04:32 PM
Comments
A point you did not consider: with the continued shrinking of real income, a lot of folks are going to be moving from the Target to WalMart demographics.
Kent
Posted by: Kent ![[TypeKey Profile Page]](http://www.chrisishardcore.com//nav-commenters.gif)
at June 7, 2005 12:39 PM
Walmart's aren't necessarily poorly layed out, and the store is in disarray because it's so big and so many people shop there. But it's not really different at all from any K-Mart I ever went to, even more than 15 years ago.
About snobbiness: Remember. Walmart is not in urban areas, where anti-Walmart "snobs" generally live. But suburban/exurban/rural people eat it up with a spoon and go back for seconds.
About same-store sales: Do you really think the stereotypical Walmart shopper could really afford much more than 2.5% more at their Walmart than last quarter/year? Plus, Walmart would rather build another Walmart 2 miles away than worry so much about getting more customers into an already-busy location.
Posted by: MEM at June 7, 2005 06:17 PM
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