Wal-Mart Stores, Inc. (WMT)

XWord (31.72) Submitted: 1/10/07 1:14 PM

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I see these same weaknesses in WMT.

Never mind the fact that I feel like a loser in their stores when I shop there.

I started avoiding WMT as a shopper a couple of years ago. I spend my time in Target and Costco for the most part. Throw in a few vegetable stands and grocery stores too.

It was novel at first to do one stop shopping in one of their Super WMT’s but braving the cheese line type atmosphere there has taken out all of the excitement over buying anything in their stores. I wonder how many other consumers out there feel the way I do about shopping there.

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shpacr (99.62) Submitted: 3/29/07 10:50 AM

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You've missed the boat. I work for Wal-Mart and while I too expect it to underperform, I have to say you're off base, especially with #1 and #2. Those are nothing but SEIU and UFCW propoganda. Most of the UNIONIZED retailers in this area actually pay WORSE. (Example: Retailer A starts people more than $1.00/hr less than we do (not to mention that it can take 10-12 years to finally make it to full-time status) and Retailer B makes people wait nearly 3 years for health insurance.) I'll be nice and not shame those two with their names. I USED to work for the first one and have several friends who worked for the second one, so I'm not just throwing things out there just for the fun of it. I'm very happy working here.

Now, why do *I* think Wal-Mart will continue to underperform the market? Simple: We're trying too hard to please everybody and not as focused on our core customer.

Examples:

1) We're spending tons of money on PR due to the salacious (and often times, erroneous) attacks from the unions.

2) We're trying to go more upscale, la Target, especially in the Fashion and Apparel lines and watching most of it go on clearance.

3) We've scrapped our popular Lay-A-Way program, which a sizable plurality of our core customers were heavily dependent on. It may not be critical in Troy, Michigan (which is exceedingly affluent,) but in Flint, MI, it sure as hell is.

4) I do agree with you on #5, at least in most parts of the United States. There are some opportunities left domestically, but most of our opportunities in my estimation are abroard.

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j1v23t (60.43) Submitted: 3/31/07 7:52 PM

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All of these factors contain truth, but all are vastly overstated in the media. Whether it is socially good or bad (and in truth it's pretty similar to all chain retailers - retail pays horribly, full-time is rare and benefits superficial) it is potentially a very good investment because of its overseas prospects and its ability to find new ways to grow.
As a former employee of several years standing, I think it's biggest challenge is its own corporate culture. Disney withered while its managers asked "What would Walt have done?" and Wal-Mart suffers from a similar "Sam" fixation. Wal-Mart's next CEO will either produce a big success by making his own way or preside over the slow death of a dinosaur.

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fOOLSONPARADE (99.33) Submitted: 5/12/07 12:50 PM

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Thanks for all the comments! I remain unchanged in my opinion especially as the consumer continues to spend less now the the Mortgage Equity Withdraws are drying up. Wal-Mart will feel the pain.

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