11/11/2004

Walmart Getting Too Big For Some

With Walmart getting so big lately it is no wonder why so many businesses are going out of business. Walmart has put Kmart out of business in its own industry lately and now it is working on other industries. Toys R Us is saying that Walmart could put them out of business. Toys R Us started the business of specialized stores. From Toys R Us came stores such as Best Buy, Home Depot, and Bed, Bath and Beyond. It is said that Walmart could start taking out stores in the consumer electronics, banking, pharmacy, gasoline, and fashion industries. Walmart is the worlds largest retailer. It is number one in sales for food, apparel, jewelry, and home furnishings. Walmart may be getting too big for its own good.

13 comments:

Julie said...

I'm not a fan of Wal-Mart. Yes, Wal-Marts have low prices, but they also lack quality and originality. For a while I feared that Wal-Mart would take over the world and rid it of individual flavor. Then I learned about decreasing returns to scale which asserts that a company cannot have limitless growth. Eventually the larger a company gets the less profitable it is. Someday, when Wal-Mart has been replaced by some other super store, we'll remember when Wal-Mart threatened to take over the world.

John West said...

Wal-Mart is seen as an evil empire to many people in the world, but what about all of the good things that they do for you and I. I'm not a big Wal-Mart proponent and am not loyal to them in anyway, but I can agree that they do generally have lower prices on countless assortments of items in their stores. This is great for the struggling family that can barely afford to put food on the table and it is even good for the rich penny pincher out there as well. We all have more disposable income because of Wal-Mart. I pose a question: Is Wal-Mart to blame for certain ills in society such as the little mom and pop store that is forced out of business? Or is it your fault and my fault for abandoning those mom and pop stores when Wal-Mart marches into town, that forces them out?

peter_parker said...

There are definetly some good and bad sides to Wal-Mart. The prices are good, but I hate going there at times due to the parking and the crowds and stuff. I can see one good thing about Wal-Mart growing so large- it makes competitors have to reconfigure a strategy in order to stay competitive. It's the old competition benefits consumers theory. Sure Kmart is struggling, but it is evident that they are attempting to enter different markets and come up with other comparative advantages. And us? We reap the benefits of lower prices, new products and new processes.

Biancca said...

I actually prefer Target, but I shop at wall mart a lot just because its so close to my house. I think maybe they can grow broke with limitless expansion, but they seem to have decent managers, at least so far. My experience with Toys R Us has been much better than with Wall Mart because they have more toys in stock, and I like ordering from them online. I am surprised to hear that Toys R Us feels threatened by wall Mart.

Jake said...

I think that it is too bad that Walmart can run so many different companies out of town. This past week there was a city meeting in Sandy about a proposal for a new Walmart. Many people came out in opposition of a new Walmart, and said they would prefer a city park instead. I think that it is great when people come out and side with there hometown business' and hipefully that will keep Walmart from coming in and running so many out.

Rufio said...

You mentioned in your article that, "Wal-mart is number one in sales for food, apparel, jewelry, and home furnishings. If it is number one in all of these things then why is everyone so upset. Wal-mart has some very smart executives that have made the company what it is. Just because something is doing well and succeeding doesn't mean that it is evil. Wal-mart is doing what many business want to do and that is be the only provider. Businesses are in business for profit, and if they get that profit ethically then that's fine with me.

Janet said...

We all do knock down on Walmart, but where do we shop? This is just like reality television. People may say that is it a bad thing, but we still find ourselves getting addicted to that show. Walmart knows the business and should be awarded because of it. Julie said it right about quality. Walmart is not known for quality but more for price. Toys R Us will be fine if they just stay with quality. Toys R Us does not have people returning their products like Walmart does. I cannot tell you of one time that I have been to Walmart and there is not a line of people returning items; Not just a few people, but a line. Toys R Us has a much larger variety as well. This could almost hurt Walmart because it is just easier to go to Toys R Us and know that you will find the right toy versus hoping you can find it or something similar at Walmart.

John West said...

I disagree with some comments on this thread. The issue in Sandy is a good one to discuss. For many decades this particular acreage has been home to gravel
pits and all other sorts of cement like concoctions. People were not worried about it in the least bit. Those of us from Sandy, continually drove by it and
never gave it a thought.

Now Wal-Mart wants to purchase the land and bring
retailing to this area. All of a sudden this ground
has become the garden of eden and is bringing people
out of the wood works that could actually care less about the ground, but instinctively oppose any sort
of action that Wal-Mart may take in coming to that
part of town. I watched the news and heard their logic.
It wasn't very good. Some propose a park. Is it going to be the Central Park of Sandy? The ground covers more than 100 acres. That would be one helluva park.
My biggest complaint with this issue is that I guarantee
that most of those people that oppose Wal-Mart, will
still continue to shop there and would ultimately shop at this location once it is built. Everyone loves to
hate Wal-Mart, but they still go their for the convenience and overall low prices.

Bruce Banner said...

Toys R Us did the same thing with other toy companies. How do you thing Toys R Us got so big? Now Wal-Mart is getting better on low cost stratagy than Toys R Us. Just something to think about, in time something else will come in and will replace Wal-Mart. Just look at Sears compared in the 50's and 60's and now.

Kova said...

Yes, Wal-Mart is big but big does not necessarily mean bad. This topic came up in my marketing class earlier this week as well. This country has seen other retailers that were just as big, if not bigger than Wal-Mart and until recently I had not even heard of them. They had completely disappeared. One example is the A&P grocery store chain. The article we discussed in Marketing stated that A&P has as many as 15,000 stores in the United States at one time (compared to Wal-Mart's current 3,000). It is hard for me to imagine that an organization as large as A&P could simply disappear but they did and I imagine that there is a good chance that Wal-Mart will eventually disappear as well.

Bryce Larkin said...

I don't think that Wal-Mart is getting to big. They may put stores out of business that are trying to compete with them but they can't get into every market. There will be a time when some one beats Wal-Mart. Plus when Toys-r-us was getting big they made other stores go out of business because of what they did.

Maudi said...

Many people view Walmart as this bad place;however, many people talk bad about Walmart and then go shopping there afterwards. Walmart is only trying to be the low cost leader. This isn't such a bad thing, especially for the consumers. Consumers alway wine and cry about how expensive goods are and now that a store has heard that cry and is trying to fill that void people are mad at them. I think Walmart is a great store and if people understood what a great thing Walmart is doing by keeping the other stores honest they wouldn't open their mouths.

Dr. Tufte said...

Please help me ... I cannot write another comment about Wal-Mart.

OK ... what to do instead ... maybe, recommend a movie. Go rent What's Eating Gilbert Grape for some perspectives on the retail business in a small town.

And for those of you who have seen it ... everytime a new fast food joint is about to open in Cedar I have the overwhelming urge to ask people "Do you even know what canola oil is?" ;)>