Wednesday, May 18, 2011

Two Shopping Trends

1. With $4 Gas, More Folks Skip the Trip:  Wal-Mart and Lowe's Say Rise in Pump Prices Gives Some Consumers Pause About Shopping—and Sales Receipts Suffer.

MP: With "free" shipping becoming increasingly common, why spend gas money to drive to a "brick-and-mortar" retailer?


At 5/18/2011 4:41 PM, Blogger Benjamin Cole said...

Wal-Mart has had eight straight declining quarters of same store sales. They blame gas prices, they blame the economy, they blame inflation, they blame everything but themselves.

Wal Mart stock, btw, is trading for about where it did 10 years ago.

Now, this:

Target Corp. said Thursday that its April sales at stores open at least one year rose 13.1%. Analysts, on average, had expected same-store sales to rise 13.2%, according to Thomson Reuters. Net sales for the four weeks ended April rose 13.7% to $4.87 billion

So, Wal-Mart same store sales are falling. but Target's are rising 13 percent a year? Target shoppers don;t drive cars?

I sense the Wal-Mart model, like the Sears model of yore, has passed its prime. Dollar stores are everywhere (with great prices btw). Other retailers have better product mix.

Wal-Mart, Sears, Microsoft, IBM---creative destructionism on display.

At 5/18/2011 5:21 PM, Blogger Mike said...

I couldn't agree with you more. I won't walk into a Wal-Mart unless I absolutely have to and it's all about superior competition. Target stores (at least in my experience) are nicer, cleaner and typically have friendlier employees...maybe because they don't work at the Walton Family Flea Market.

Wal-Mart might do itself a favor in very competitive markets by adopting the Sam's Club warehouse feel for all their stores in an effort to lower shopper's esthetic and service expectations while increasing the sense of value.

At 5/18/2011 5:45 PM, Blogger Benjamin Cole said...

Why go to the mall?

I am a guy, and we don't get it.

I like going to a ball game.

Women like going to the mall. Shopping is recreation.

As Thomas Jefferson, Bill Clinton and Arnold S. will affirm, men like recreational sex.

As anybody with a wife will affirm, women like recreational shopping.

At 5/18/2011 8:28 PM, Blogger NormanB said...

There is no 'free' shipping and we should all know better. Its embedded in the price which is now higher. But its a good marketing effort as the consumer knows from the up front 'price' what s/he'll pay. It ain't free and shouldn't be compared to bricks and mortar businesses.

At 5/19/2011 7:02 AM, Blogger Dan said...

The price may include the "free shipping", but if it is still cheaper than getting it locally, they are welcome to add it in. Win, win.

At 5/19/2011 7:54 AM, Blogger Matt C said...

Amazon now allows for you to subscribe to get monthly deliveries on just about any good. (paper towels, toilet paper, etc.) I just signed up to receive Mini Clif bars. They will be shipped to my house at a reduced price for free.

It will be interesting to see how that impacts home grocery deliveries.

At 5/19/2011 8:36 AM, Blogger Eric H said...

Plus, when Amazon gets a sweetheart corporate welfare deal like they are in TN (no sales taxes), how can WalMart (or Target or the dollar store) compete when they start out 10% behind?

At 5/19/2011 1:19 PM, Blogger Ron H. said...

"Plus, when Amazon gets a sweetheart corporate welfare deal like they are in TN (no sales taxes), how can WalMart (or Target or the dollar store) compete when they start out 10% behind?"

So, you don't like it when states compete with each other to attract business?


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