Wal-Mart Left in the Dust by McDonald's
What Wal-Mart Can't Learn From McDonald's
Wal-Mart Stores and McDonald's both outperformed the broader market during the recession, but as the economy recovers McDonald's is leaving Wal-Mart in the dust.
Expect this trend to continue. That's because Wal-Mart has essentially one thing to offer: low prices. Customers don't feel good about shopping at one of Wal-Mart's stores; despite efforts at revamping its image, the retailer is still seen as a downright cruel employer. The bribery scandal in Mexico certainly didn't help matters. And its vast, horribly-designed stores despite obligatory efforts at a revamp, still make customers feel like cattle being guided toward the slaughter (check-out line).
McDonald's, meanwhile, has got its groove on. It's got premium coffee an expense that, ingeniously (OK, ruthlessly, if you like), it gets franchisees to pay for. It also, increasingly, has some pretty cool-looking new restaurants. .........................(more)
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