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 1 of 18)
10-30-2006 @ 6:35PM
valreie ratner said...
IfTarget does not have what I want, I cringe because I have to go to WalMart for the item..Befo
re Wal Mart came to my area, I always heard about the wonderful help, the greeters etc..I couldn't wait for Wal Mart to get here..The key word to Wal Mart in this blog is chaos...The aisles are always in disarray, the help is less that helpful and the store is too darn big to find anything on my own...I try to avoid WalMart at all costs, no matter what their prices..It's a disaster..
10-30-2006 @ 4:00PM
fred diaz said...
are you kidding, i love wal-mart, i know target is a lot classicer , but wal-mart has everything one needs
10-30-2006 @ 4:06PM
John said...
Targot in my estimation has alway had more class, better quality produts, cleaner stores and more helpful employees than Wally World
10-30-2006 @ 4:52PM
Frank said...
It's amazing to me that everyone else everywhere in the country has the identical experience when it comes to Target versus Walmart. Target is a pleasant, nice, enjoyable place to shop while Walmart is chaos, frustrating, and depressing. How can Walmart be so consistently bad when compared with Target? We're willing to pay a dollar or two more just to avoid the aggravation of shopping at Walmart. Is this "consistency" both the good and the bad of Walmart success?
10-30-2006 @ 4:42PM
Bruce said...
I only go to Wal-Mart when I absolutely have to. My main gripe with Wal-Mart is that, out of perhaps 40 check out stations (to serve me better?) often only about seven or eight are in operation. And the quality of their merchandise (audio and video in particular) is mostly substandard (performance wise) when compared to Best Buy, Circuit City, and even Sears. And "Always low price," usually translates into "Always poor service."
10-30-2006 @ 9:17PM
Grant said...
Locations, largest selection of merchandise, prices and hours open are all very important things for me as well as many others. If something happens after 10:00 pm and I need a light bulb, Computer supplies or a plumbing or electrical part or just need to go grocery shopping they are open and close by. I like Target as well but I don't think they will ever overtake Walmart.
10-30-2006 @ 6:19PM
Jerry said...
I agree on the checkouts, that is why I shop during the day on weekdays. I have the luxury of time to do that. In addition, however, Walmart just carries more items in food, hardware, lawn and garden etc. One stop shopping.
10-30-2006 @ 7:14PM
Lisa said...
I have Target stock. I don't have any Wal-Mart stock. That's for starters. I shop at Target. I will not shop at Wal-Mart. I started boycotting Wal-Mart several years ago. The reasons change, but the boycott stays in place. I like Target's layout and atmosphere much better. I think Wal-Mart comes across as trashy and chaotic.
Okay, to be fair, it's also convenient for me to boycott Wal-Mart in favor of Target. Target is located about 3 blocks from my house. I simply walk over--it's faster. The nearest Wal-Mart is about 5 miles from my house. I'm not walking for an hour and a half just to get to that dump. Even so, I'd go to Target and plan my trips if it were the Wal-Mart right around the corner instead of Target.
10-30-2006 @ 6:28PM
Chris said...
Walmart - The higher the gloss, the cheaper the merchandise. That should be their new slogan.
10-30-2006 @ 7:22PM
Chelsea said...
its so funny cuz lyk three weeks ago my ss teacher was talking about how great walmart was and if yu go there at 2 in the morning yu will find sum one that you know... funny... how great is fricken walmart now!!!!
10-30-2006 @ 7:23PM
kevin said...
I like the old saying of you pay for what you get. if it is better service you want then go to Target because you will sure pay more for it. I can stand to actually do some extra looking for an item rather than pay extra. It is no comparison where i live the Wal-Mart prices are considerably lower than Target. Everybody always loved to hate Wal-mart but someone seems to be continuing to shop there.
10-30-2006 @ 7:27PM
Art said...
I once was a Wal-Mart employee, there was a time where you would be happy to say you worked for Wal-Mart. But not today, their employees are rude, disrespectful. I use to own 100 shares of Wal-Mart stock I bought it all back in the early 80's when I came home from the Army. Well just F.Y.I. I done sold all my stocks with them and bought more of an American company. I think Target will out survive Wal-Mart
10-30-2006 @ 8:17PM
william howe said...
the problem i have with walmart is quality..i have bought more things that either dont work or dont last--they are cheap at the expense of quality..sure you can return the items-which takes time and gas--so is walmart cheaper??not by a long shot--you get what you pay for at walmart-cheap junk.
10-30-2006 @ 9:01PM
Kelly H. Levene said...
I shopped WalMart on merril Rd. Jax Fl. 32277 a lot .....They moved to a super store Not to far away.....I dislike the store! It is TOO big.And too much trouble to shop there.
10-30-2006 @ 9:41PM
Judy said...
I think it all depends on which Wal Mart you shop at as far as service, cleanliness, etc. The one we hvae in our small town is very nice, employees very helpful and friendly and the prices are very good. Especially in the grocery dept. I save lots of money there in grocery dept. and buy everything but my meat/produce there weekly. I think Target is a little over priced on a majority of their merchandise.
10-30-2006 @ 10:00PM
Sue said...
I shop at both Walmart and Target, but I won't buy clothing at either place. I think Walmart's clothing tends to be tacky at best and Target's clothing is cheaply made for the price they charge. But I shop Walmart for "basics" like paper goods and pet food and Target for things like household goods like dishes and towels which seem to be much more stylish and better quality.
10-30-2006 @ 10:32PM
Cindy said...
From my experiences, Walmart's prices are much lower than Target's. However, that is not the main reason I shop Walmart. For the last several years, Target has refused to allow the Marines to collect "Toys for Tots" at their stores or the Salvation Army to collect for needy families. Companies should be "community friendly" when they are being made wealthy by the community.
10-31-2006 @ 1:52AM
Laura Sperry said...
Wal-mart sucks!!!!!!!
10-30-2006 @ 10:56PM
kathy schweitzer said...
I just started and quit working for walmart. I was shocked at the lanquage the employees scream out at each other while customers were trying to shop. Foul language. I know they are working to clean up the store but it was more headache than it was worth. Target was never a store I liked at all. So I hope in the future there will be someone else open with new ideas.
10-30-2006 @ 11:00PM
kathy schweitzer said...
Hi Kelly,
Im on your side, I used to shop the old walmart. I liked it better. I live off Merrill and the superwalmart is the one I quit. There are alot of issues with that store and I know quite a few people who actually drive out of there way to other stores to shop rather than go to it.