Walmart's "Project Impact": A Move to Crush the Competition

[CoffeeCat]

Source: Time Magazine

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."

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?")

(more at link)

Read more: http://news.yahoo.com/s/time/20090909/us_time/08599192069800

---

I've got news for Walmart. You're not the only game in town and you're certainly not as invincible as you'd like to think.

I belong to a savings/coupon club. Yes, we're geeks--but we share information, coupons and insight about grocery deals around
town. I am all over town getting great deals and stockpiling stuff I get for free or cheap--and I have probably been to Walmart
three times in the past several months.

Local grocery stores, Target and other small chain groceries are really competing for our dollars. I think many people have caught on
that Walmart's prices aren't always the lowest.

Before Walmart gears up to destroy the retail world--they'd better check their corporate ego.

...I'm just sayin.

[beyurslf]

1. Aldi's is far cheaper than Walmart for groceries.

[BadgerKid]

15. .

I've brought this up with other people in the past, and it seemed that our Aldi's is, well, different. Several years ago I visited our local Aldi's. I went away thinking if I wanted to throw a party, I could buy some items in bulk for cheap. On the down side, the fresh fruit and veggies were hit or miss. (I wouldn't be adverse to shopping every other day to pick out the better looking ones.) I was shocked to see some really low grades of peanut butter that consisted of about half peanuts and half other vegetable oils include a larger dose of trans-fats than I would knowingly consume. On the other hand, the Aldis in Germany I have visited were fairly nice.

[beyurslf]

18. Ah yes, I don't buy produce at Aldi. It never looks fresh to me.

My boys actually prefer a few things from Aldi over the grocery store though. They have a frozen lasagne that we have on nights I don't want to cook. They all prefer Aldi brand over the name brand or the other off store brands.

[grilled onions]

2. If They Are Successful....

Gone is choice for the shopper. It would be Wal-Mart or no mart. Strip malls would be ghost towns. Large indoor shopping malls are already going under. Wal-Mart is not the only reason but it has not helped. Also gone would be even more jobs, leaving even more minimal paying jobs and another wave of Chinese goods(or bads if you will). Forty years ago even the small towns had many stores. Some were small,some were not. But if you were looking for a certain thing you knew you could find it. Store owners knew their stock,knew their trade. People enjoyed shopping in their community. Store owners were not corporate giants. They lived there.Their kids went to school in town. We have lost that when the big box store made the scene and now one of the last show downs is making its' way to town. Once they destroy nearly all the competition what will be their next goal? Canibalize their own? Rid the area of the smaller stores leaving entire areas without a store for miles?
I could remember at least 7 different discount stores surviving at the same time. Each had it's own character,weakness and good points. They seemed more intent on bringing in the customer instead of bringing each other down. Sad that Wal-Mart doesn't see things that way.

[Lorien]

3. I haven't shopped there in a decade

Big Lots and Aldis are cheaper. And I'd rather go without than ever darken their door again!

[ingac70]

4. Walmart owns Big Lots. n/t

[CoffeeCat]

5. Those bastids!

I didn't know they owned Big Lots.

That's insane! They own Sam's Club. Isn't that on par with Big Lots?

Wow...

[Sherman A1]

17. I don't believe they do

I believe the Big Lots is a completely different company and Wal Mart does not in my information own them. That said, I suspect that their employees are not treated much better.

[zalinda]

6. As far as I know

Walmart does not own Big Lots. It is traded on the exchange as BIG. It came into being with the consolidation of Odd Lot stores and Kay B Toys.

zalinda

[DesertDiamond]

7. Thank you CoffeeCat! WalMart has just pushed through two more superstore plans in my area

one is in a pleasant, small town, semi rural area that will now be ruined. Worse, it's right across from a high school. I have only been to WalMart about seven times in my life, when I couldn't get what I needed anywhere else. From now on, I will do WHATEVER it takes not to shop there. If I have to drive an hour, if I have to do without, whatever. I will NOT shop there EVER.

[create.peace]

8. aldi.....Trader Joe

Most of the brands are generic, but you can find recognizable names such as Healthy Choice, Pringles and Eggo. Compared to major retail stores, ALDI customers save 16 to 40 percent on private label or store brands at traditional supermarkets. ALDI also offers higher wages to its workers. Cashiers start at $10 per hour and store manager trainees start at $20 per hour, and every employee who works at least 20 hours per week receives full medical and dental insurance plus 401k.http://www.marketingshift.com/2009/2/lookout-target-wal-mart-aldi.cfm

So, let me ask those of you who fall into categories 2 and 3: Who owns Trader Joe’s?

1. Some great California family full of surfers and gardeners.

2. A small band of communal farmers in Oregon.

3. A huge German discount-grocery chain best known in the U.S. for no-glamor stores often located in marginal neighborhoods.

Yeah, it’s No. 3. The company is called Aldi and, though I’d seen one or two of its stores in the past,
http://freakonomics.blogs.nytimes.com/2009/02/19/do-you-know-who-owns-trader-joes/

[Hubert Flottz]

12. I have shopped at Aldi for years.

Aldi's store brand items are as good, or better, than any products anywhere I've ever shopped, IMHO.

I shopped at Aldi in Germany years ago and I was glad when they came to the US and to West Virginia. Their imported items are great too.

[Trajan]

9. In the Northwest ...

Bi-Mart (department) and Winco (grocery)...

Both employee owned .... Target is also decent alternative ...

The workers from Safeway and Albertson's shop there as well ...

WalMart's prices are NOT that much lower, and sometimes higher .... WalMart can go to hell ...

Unfortunately; most goods are manufactured elsewhere, but that is true at every store ... it is a different problem requiring a different solution ....

[amandabeech]

10. Calling the Justice Department's Anti-trust Division!

Mr. Holder, will you please pick up?

[Canuckistanian]

11. At what point can anti-trust laws be called in?

What walmart is doing is no less predatory than Standard Oil, Microsoft or AT&T.

They're too big and they're causing damage to beneficial competition.

[comtec]

14. The problem is by and large it's not a monopoly

but it is on the small scale.
the justice department has to be called in on the small scale to kill this weed!

[specialed]

13. peopleofwalmart.com

I will never shop there.

http://www.peopleofwalmart.com

[Bill219]

19. page 4

http://peopleofwalmart.com/?paged=4

the second pic had me laughing but the last pic on the bottom of page, WTF is that mother thinking?

[eilen]

16. Their new store design and logo

appear to be an attempt to beat Target. I never ever ever shop there. I had to go in once because my MIL sent my son a Walmart gift card and felt dirt on my soul when I left.