For many investors, putting money in Wal-Mart Stores, Inc. (NYSE:WMT) is like investing in America. Wal-Mart stands for everything that your stereotypical middle American does; sprawling properties, gigantic packages of Suave(TM) and Snickers(TM) and Snoop Dogg (TM, probably). Wal-Mart is to retail what the Hummer is to automobiles. Big, resource-hungry, and not entirely respectful of the little guy. And along with America, Wal-Mart seemed like the never-ending growth story. Sometimes I thought the Waltons' place in the billionaires' top 10 would never be equalled.But some days, like today, the news seems to go a different way. Wal-Mart, emperor of homogenization, king of the price cut, sultan of squashing its competitors, posted a teensy 0.5% same-store sales growth in October. There's talk that the retailer might even (yikes! double yikes!) post so-called "negative growth" a.k.a. shrinking in the months to come.
Where Wall Street comes from, negative growth is a synonym for "run for the hills." From whence cometh our help, Americans?
In my opinion, our help cometh from Target Corp. (NYSE:TGT).
Target wins the battle of the big retailers for a number of reasons. Target's clothing is young, hip, trendy; heck, the designers on Trading Spaces shop there (which I know because I saw one of my shirts on TV one memorable season). Target really does have everyday low prices (I've compared, lots of times Wal-Mart's are higher and Target often underprices Costco on a per-unit basis -- and no membership fee!). Target's employees are just nicer, I can only imagine they're better paid and benefit-ed. Target stores are just nicer places in which to shop, I don't know if it's the employees, or the customers, or the way the aisles are laid out, or a combination -- but I feel a sense of calm when I shop at Target. Wal-Mart, on the other hand, is an exercise in chaos and frustration.
Yep, I know, these things are all pretty qualitative. But when numbers fail you -- and 0.5%, for all intents and purposes, is failure -- turn to the intangibles. Brand image. Style. The way it feels when you walk in a place. The impact on your monthly budget. Whether or not you feel inspired to pick up that cute Halloween t-shirt on the way to the checkout line.
I know. I have at least four of those cute Halloween t-shirts. They're all from Target. And that's why I think Wal-Mart is losing to Target.
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Reader Comments (Page 5 of 18)
10-31-2006 @ 3:32PM
Connie said...
My biggest problem with Target is the return policy. 90 days no matter what -- make sure you don't buy anything for a specific event more than 90 days ahead (think Christmas/birthdays) because they will NOT take it back. If I buy something for an event, I usually buy the day before to give the recipient the most time to return. They also have an extremely small plus size section. Not worth even looking at. If they would change these 2 things, I might shop there more. I usually shop at Wal-mart if I'm looking to shop at a discount store.
10-31-2006 @ 3:32PM
JD said...
I am a Wal-Mart stockholder, and have long shopped at Wal-Mart and Sam's Club. But I am seriously considering dumping my stock (which I have held for 25 years) and changing my shopping loyalties now that Wal-Mart has decided to openly pursue and fund homosexual activities, including a recent "diversity" function at Boise State University. Wal-Mart's founder, Sam Walton, would not have approved, and I do not approve, either. It appears that Mr. Lee Scott is willing to sell the conservative Wal-Mart values that have long been held for the shopping dollars he can get from the homosexual community, even if he loses the conservative Christians from his stores.
10-31-2006 @ 3:39PM
Joe Brown said...
Our Wal * Mart store, #1156 in Mooresville, NC is clean, has very helpful associates, and KILLS Target on product pricing. BUT, I will no longer shop ANY Wal * Mart store because Wal * Mart (Bentonville, Ark.) headquarters SOUGHT out the National GAY & Lesbian orgainization and INSISTED on JOINING them IN overturning the laws to FAVOR SAME PARTNER MARRIAGES. And are giving GAY & LESBIAN business owners PREFERANCE OVER ALL OTHERS. The company is now ALSO STOCKING VARIOUS GAY & LESBIAN reading materials in their stores. Sam Walton has to be ROLLING OVER in his GRAVE over the NEW merchandising methods taken by his old company.
10-31-2006 @ 4:38PM
Cyn said...
I am surprised no one has mentioned (experienced)
the fact there there are 20-25 lanes NOT open and no
checkers in any of them at Wal-mart, not to mention
there are another 20 self check-out lanes that
are never open either, at least where I live anyway and grant it, it may be 5-6-7am in the morning but
it always irritated me to death that the self check-out lanes were never open which defeated the purpose for someone who goes that early in the morning.
The wal-mart shopping thing started with me just
being a very early riser I wanted something to do and it was great there was something open at that time.
10-31-2006 @ 3:43PM
Brian said...
Of course I shop at Wall Mart, who doesn’t. However, the reason why wall mart is ailing is because they are too large and they offer inferior products. Not to mention that there employees are some of the lowest paid people that I have seen. If wall mart does not take action quickly they will lose the battle of the big retailers.
10-31-2006 @ 4:10PM
targethater said...
I will never shop at Target, don't you realize it is a French company, why make them richer. Wal-mart could re-organize their stores, but atleast it's a good old USA company. Target is not cheaper than Wal Mart.
10-31-2006 @ 3:50PM
Kati Merchant said...
Target is by far the better retailer. I also boycott Walmart because their service is horrific. I manage a high volume retail store and if myself or my employees treated customers the way Walmart does we'd have been fired a long time ago! It's time to stop shopping at Walmart out of convenience because not only are their products crappy but they're run dishonestly and continue to violate human rights all over the world!!!!
10-31-2006 @ 3:45PM
samantha said...
I agree, I agree, I agree!!!!!!!!!!!! Wal-mart is horrible. Selection is terrible. Layout of items are confusing. I will never go back. Target all the way!!!!!!!!!
11-01-2006 @ 12:11AM
Coy Lane said...
I myself have always found it funny that the same people who refused REFUSED to go to K-mart because it was messy and their stuff was "trashy and of poor quality" rave about how fantastic Wal-mart is, when in fact they sell the same shoddy merchandice from the same crappy manufactures that K-mart does. I do not shop at wal-mart and I'm originally from their home state. Where I live now there is within 5 miles a Wal-mart, Kmart, Sears, Target. Wal-mart lot is all ways full..I say good, it makes the other stores less crowded for me :)
10-31-2006 @ 3:48PM
`Bill Wiebalk said...
Target is clean, well stocked, friendlier, not have to dodge baskarts, never see employees smoking around the entrance, customer service is excellent, well trained employees, always get a thank you, competive prices. Wal Mart is none of these.
As a retired Dist Mgr. of a large chain, what really gets me, I arrived at a Wal Mart prior to opening and at least seventy cars in the parking lot closesest to the entrance filled with employees cars, I watched several, getting out of the car apron in hand flipping there cigarette by the entrance.
10-31-2006 @ 3:48PM
Heidi said...
No one likes to go to the store because it takes up time! However, if I can stop at one place and do ALL the things on my list that's where I'll shop. Where else can you get groceries, medicine, feed the kids Mcdonald's or Subway (if need be), get a hair cut,and an oil change? Gas is to high to make unnecessary trips!
Wal-mart may need to make some adjustments-but what company doesn't?
10-31-2006 @ 3:58PM
jeane said...
Has any one heard of Kmart. Super Walmart is to big-I have to get a scooter to be able to go through it.
Kmart has alot of good things. Target has good merchandise. But all of them have the same problem no CASHIERS. The managers and department heads need to work the registers instead of hiding in the back.
10-31-2006 @ 5:29PM
Peter H. Wilford said...
I can't see why anyone would shop at a Target. The couple of times I've gone to one I was sent here and there and never found what I wanted. They were nearly empty but there seemed few clerks around to help. I've most always gotten what I wanted at the Wal-Mart here although it usually takes a while. I do most of my shopping at the nearby Sam's Club and Winn Dixie supermarket.
10-31-2006 @ 4:32PM
BRETT said...
IN MY TOWN THERE ARE PLENTY OF LUX CARS IN WALMARTS PARKING LOT.
THESE ARE PEOPLE WHO REALLY LIKE TO GET VALUE WHEN SHOPPING.IN FASHION APPAREL TARGET HAS AN EDGE.IN BASIC APPAREL ITS WALMART FOR QUALITY AND VALUE.NO ONE HAS HIGHER STANDARDS THEN WALMART.I USED TO BE A SUPPLIER TO BOTH.IN EVERYTHING ELSE IN WALMART THE SAVINGS ARE 20-40% OVER ANYTHING IN MY LOCAL SUPERMARKETS,DRUG STORES,ETC.COSCO IS O K IF YOU WANT TO BUY IN BULK.FOR ME I LOVE WALMART,I CAN SAVE $1.30 ON A BOX OF COOKIES,$3-4 ON ON AN ITEM IN THE DRUG DEPARTMENT.$20-30 ON A PRESCRIPTION,FOR ANYTHING I NEED AND FIND IN WALMART I FEEL LIKE A WINNER.
10-31-2006 @ 3:56PM
Dolores said...
Why would anyone want or have the need to shop at walmart, finding anyone who speaks english there is a problem, the prices are higher than anyone else, and most of there stuff is garbage. The last time I shopped there for food, my family and I got food poisoning! so good luck and you folks who have more money than cents, I would like you to send it to me.
10-31-2006 @ 4:00PM
J Johnson said...
Almost everything I have bought from Wal Mart seems to be substandard. I would have been better off paying a little more and not having to rebuy the item at a different store
10-31-2006 @ 4:04PM
Jim Hood said...
Target, a French Company, ran off the Salvation Army, and the US Marines toys for tots. Considdering the work these two organizations do for the poor, It almost makes it unpatriotic to shop there. Wal-mart, or as it is called here China-Mart, is openly a great supportewr of the homosexual agenda. It is no secret, Ford motor company is too. The checkout deal is what put Winn-Dixie in trouble, I know I spent 19 years there.
10-31-2006 @ 3:57PM
Lisa said...
Thumbs up to Target. Thumbs down to Wal-Mart.
10-31-2006 @ 4:03PM
Kat said...
I am an ex-Wal-Mart associate. Everything that is being said about Wal-Mart is true and that is just the outer laying of Wal-Mart the core has not been touched. Checkout lines are kept to a minimum with the excess cashiers working on the floor. Looking for an associate to help you is like finding a needle in a haystack. They can't keep people, low wages,health insurance that is too expensive, working mothers til 11pm or later while managers let their favorites work the early shift and even nights. Assist managers stealing,no security, filthy bathrooms, I use to hold it or go next door to McDonalds to the bathroom, I have never been to any Wal-Mart where there bathrooms were clean. The store I worked in had a mentally challenged woman, 3 blk women over 60 and 1 man who worked maintenance during the stores operational hours. The store manager could have cared less about inconviencing the associates as long as it looked good on paper to the home office. My adivce, shop their only if necessary and next time you are in a long line while the red jacket (csm's) are busy talking and not getting on the registers to help get the lines down, flip open your phone and call the 1-800-walmart and if their not open go to www.walmart.com and click on contact us and write your complaint, if not go to customer service and demand to speak to a assit manager and have them call the store manager on his cell if he is not at the store and also get the district manager on the phone. The home office will not do anything about these stores unless people keep complaining. I have complained 4 times in my last 5 trips to Wal-Mart. Also if you complain enough they will give you a $25 gift card to keep you happy and be a return shopper. Sam Walton is spinning at the speed of light in his grave. The Wal-Mart today is not the Wal-Mart he built over 30 years ago. Lee Scott and the greedy children and grandchildren have run it into the ground, I predict that it will do just like KMart within the next 3 years. If you have stock, sell it, put it into Microsoft, google or buy US Savings bonds, I wish I had!
10-31-2006 @ 3:59PM
Linda Brasile said...
I don't care much for walmart, but I will not shop at target. One reason, they don't support our troops. I have 2 sons that are in the Military, both are in the Army.