Just when we think Wal-Mart is gaining ground in certain areas, it loses in others. This is nothing new to a point, as Wal-Mart Stores, Inc. (NYSE: WMT) has a whole host of things against it every day; fierce competitors try to chip away at pieces of its business with differentiated offerings and fresher strategies, and many communities that will stop at nothing to keep the world's largest retailer from entering certain cities and towns.Wal-Mart estimated over the weekend that October same-store sales will increase only 0.5% in October, setting the stage for possible share turnover today (it's already underway -- the stock is down 2.64% to $49.39 at last check) to more and more comparisons against Target, which continues to outshine much-larger competitor Wal-Mart every month with higher same-store sales reports. Remember though -- a 2% gain at Wal-Mart is not equitable to a 2% gain at Target Corporation (NYSE:TGT) -- the two chains are quite different beasts when it comes to overall sales and revenue figures, with Wal-Mart being about five times larger than Target in terms of overall revenues.
But, with that being said, Wal-Mart's latest estimate has been dropped in the midst of a series of sales misses. Wal-Mart has struggled, and will continue to do so, to shed its bargain-basement image and attract higher-scale customers. These are the ones who now flock to Target, which has made that exact transformation in the public eye recently. Wal-Mart has one massive re-badging effort to go, and I'm not sure if they can ever get there without incredible moves -- which most of us have not seen yet.
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Reader Comments (Page 2 of 22)
10-30-2006 @ 8:37PM
Terri said...
I stopped shopping at Walmart when I realized that the Walton family, the richest people in the world, do not give to charity. All the money that Walmart gives to the communities comes from the customers, and it is peanuts. Why make them richer? If I can find it somewhere else, I will go there. Add on to that the lowsy pay, the poor customer service because they overload their employees, their buying tacticts.....I could go on and on.
10-30-2006 @ 8:35PM
Mary Glenn said...
So slave labor in China and other places in the world (not excluding the U.S.) is an issue that is appropriate for you? Interesting.
10-30-2006 @ 8:37PM
lilly lyn bacor said...
IF PEOPLE WOULD STOP STEALING FROM WALMART I THINK IT WOULD'NT BE SOOOOOOOOO BADD. YOU LOSE ALOT OF MONEY FROM ASSOCIATE AND CUSTOMER THEFT. PEOPLE DON'T EVEN WANT TO WORK FOR THE COMPANY BECAUSE THE CUSTOMERS TREAT THEM LIKE TRASH.
10-30-2006 @ 8:39PM
Leva Bartnicki said...
I've worked for WalMart for the last 10 months and to date it's the best place yet that i've worked. They treat their employees great, they're totally focused on the customer and WalMart takes great pride in taking care of the customer and the employees. I refuse to shop Target. They are a French owned business. France refuses to help us or support us and they run us down every chance they get. Target will not get my business and where I live, they only had 3 cashiers in the whole store. The area i'm from, you don't see that in our WalMarts.
10-30-2006 @ 8:38PM
kat said...
Where else can you go and get a gallon of milk, eat lunch, get your oil changed, hair done,banking done,and have your portraits taken in the same visit!! Walmart but I like Target much better.
10-30-2006 @ 8:48PM
Jade said...
as much as possible - Support Your Small Local Business NOT Big Corporations - I started buying all my produce from the little local stands around town and I found this great little meat market (for example whole pineapples $2.00 and bacon $1.69 lb) - It cost me the same or less and most the time better i get quality products - no crowds or lines - i am much happier shopping since i have made these changes
10-30-2006 @ 8:40PM
cash moore said...
there owned by the french do not support our troops ect.at leaste walmart is owned by americans enough said!!!
10-30-2006 @ 8:50PM
HPHILIP said...
I like both. Target is located closer to me, which is important as I don't currently have wheels. Walmart can be better for some things, Target for others. I don't think Walmart should do away with any departments. Why mess with success?
10-30-2006 @ 8:43PM
Diana said...
Wal mart is nice but here in Indianapolis it is closing up its layaway and that is making a lot of people upset, a couple years ago Value City stopped so now everyone is crowding to Kmart. I wish Walmart luck because it has a lot of good sales going on
10-30-2006 @ 9:07PM
Anthony said...
So many want to paint a doom and gloom to the Wal-mart outlook. Consider what would happen to the world ecomomy if Walmart toppled, there are some pretty big companies out there that would go right along with them ie. PepsiCo(Frito Lay, Pepsi, among other products), J&J, P&G, among others. Some fairly large compaines owe a large portion of thier sales and revenues directly to Walmart Inc., and not just domesticaly but world wide. In speaking with a regional Frito Lay rep in my area he stated that over 50% of his region sales come from Walmart Inc. And I would venture to say that alot of these others are in that same boat. All I can say is hopefully for the total economy sake Walmart does not fall as so many want to point to and some hope for.
10-30-2006 @ 8:45PM
Vicky said...
I like Walmart because , unlike Target , I bought a computer and accessories right there in the store and didn't have to go online to order and get charged shipping fees . However , Walmart does need to clean up it's image when it comes to employee issues . I do think they should keep their layaway too. I worked for Target many years ago and found some of their "ways" kind of stupid .
10-30-2006 @ 8:47PM
Jo Havelick said...
As Tom Cruise once said in the movie, "Rain Man",
"Wal-mar Sucks"
That is not my opionion but my point is that I do not believe that Walmart is losing to Target at all. Come on, what's with the offer of the $4 prescriptions there?
They continue to rollback prices howeever could use some lessons on how to pay their employees better w/increased benefits.
They may need to restructure their business but they will never lose due to their wide diversity of customers from all walks of life. They are loyal & will not allow such a negative report cause any doubts. I know I won't.
10-30-2006 @ 8:45PM
blade said...
Ive seen the walmarts from the supercenters in Dallas and Denver and the mini walmarts in middle of now where oklahoma. They bring good prices and stuff to people in ruarl areas they would see unless they drove to big towns..that good and please takign out mom and pops stores these were goign anyway due to internet; But i wont show walmart. no service hardly any cashiers and stocking shelves at 2 pm in afternoon? Target I found has same stuff at same prices and never a wait and when there is one the managers start running cash registers. In big city ill never go to a walmart ill go to target first
low prices great until your lookign for a thing that cost 200-300 and its cheaper at walmart and ther idiots and rude and have no idea and then you think Im saving maybe $5 for this shit....see you later walmart
10-30-2006 @ 8:46PM
Rita Corona said...
I USED TO LOVE WALMART BUT, NOW THE STORE IS REAL DIRTY. FITTING ROOMS ARE FULL OF CLOTHING ON THE FLOOR ALL OVER THE PLACE. THERE ISN'T ANY LIGHTS IN THE PARKING LOT AT NIGHT, VERY SCARY. TARGET IS A LOT CLEANER, THERE EMPLOYEES ALWAYS ASKING IF YOU NEED ANYTHING. I THINK TARGET PRICES ARE THE SAME IF NOT LESS. TARGETS PARKING LOT IS VERY WELL LIT AT NIGHT
10-31-2006 @ 10:22PM
tom said...
I was camping and needed to buy batteries. I went in a Wal-Mart (the only store in town) and was told by the manager to leave. I couldn't understand why, but then I realized I had on a union shirt. The boss thought I was there to sign people up. I will never set foot in a Wal-Mart again.
10-30-2006 @ 8:49PM
Kim said...
those of us in the blue states with our teeth and a fashion sense adore target. they have everything walmart has plus a starbucks and i agree, ten cents more is a small price for good service
10-30-2006 @ 8:50PM
Kari said...
Well I work at Target. I think Target is so much better not because I work there but because they are cleaner, we have friendly team members, and when it gets busy we always make sure we have enough cashiers to come by. We always make sure our "guests" have the best experince shopping. That is our main goal. Walmart yes indeed is a good store but they need to change their appearance and get more cashiers becasues it is always so full and at least could the workers be nice????
So... I have to agree Target is a fast, fun, friendly service!
10-30-2006 @ 8:53PM
Cheryl said...
I think it is interesting that #11 finds having a security truck circling the parking lot, comforting. It is a fact that when a Wal-mart goes in, crime goes up. They have applications for their employees to get welfare help on their break room tables, for goodness sake. I have chosen to live in a small town and I support the businesses that operate here. I can go to any of them any time and not have the need to feel 'safe because there is a security vehicle nearby'. The little extra money I spend is what I would pay in gas, (and them some) driving to a bigger city (only 10 miles away) and suffereing the horrible customer service and idiotic crowds. Keep Wal-Mart OUT of my town.
10-30-2006 @ 9:08PM
Molly said...
I don't find Walmart's prices that great, in any area! I've been caught by their "bait & switch" too many times. I also resented my baby formula was cheaper 10 miles away, but it was a more economically depressed area of town. BUT the thing I hate most about Walmart is the dirty, crowded stores with boxes everywhere and merchandise in the aisles and on the floor. The company went DOWN when the Walmart heirs got their greedy hands on it, so now the company their father spent his life building has a horrible reputation. GONE is the friendly store that cared about its employees and its customers. I respect the founder, but I shop Target and KMart every chance I get. If I can help it, I WILL NOT LET WALMART PUT EVERYONE OUT OF BUSINESS.
10-30-2006 @ 8:54PM
tra hucken said...
walmart really needs to take a look at customer service and the image they are making,it seems like they are taking away things like the layaway and also the rude cashiers ,walmart do you need to be reminded that the little people made you who you are,as for me and my family we will go to target and kmart starting 12/13/06 the day you plan to stop layaway.