3/11/2005

Supermarket Bankruptcy

In the article Supermarket Bankruptcy, it is referring to the Winn Dixie corporation, which at one time was number four in the supermarket chains. They have recently just declared chapter 11 bankruptcy; they have closed over 200 hundred stores and have slipped down to number 14. Of course there main competition is Wal-Mart, and the reasons for this are because Wal-Mart has the lower prices. It is hard for anyone to compete with Wal-Mart prices. Another problem of the Winn Dixie firm is they really never decided if they were an upscale vendor or if they were a discounter. Which is a mistake on there part because you need to be able to have a target market, so you know exactly who to target.

4 comments:

Tom said...

Ya, the great Wal-Mart has pretty much killed competitors in the grocery market as well as the merchandise market. Times are hard when Wal-Mart is in town. So, if your in the same business as Wal-Mart you better keep up and decide on a business plan or be blown out of the water.

heather said...

In my opinion, Wal-Mart is sterile and soulless, but they do everything incredibly efficiently and at such a low cost that I wind up shopping there anyway. You cannot dispute the savings they offer compared to Wal-Mart's competitors.

Dr. Tufte said...

-1 on Harry's post for a spelling error.

Wal-Mart has not been able to kill grocery stores generally - only the ones that are trying to offer low prices instead of quality and variety. Places like Whole Foods Market are doing just fine against Wal-Mart. Personally, I've had a lot of experience with Winn-Dixie, and it wasn't my favorite grocery even before Wal-Mart got into that business.

stockton said...

I agree with DT, in that Wal-Mart hasn't been able to drive out all of the grocery stores. Look at Albertsons, Smiths, Lins, etc.-they are still in business and doing well. They are doing so because they offer more of a variety of groceries and a lot of their food is of a better quality. I would prefer the food at an Albertsons compared to Wal-Mart. Also, I don't have to walk ten miles to find something I'm looking for.