4/04/2005

Walmart on the top again

Walmart is on the top of the fortune 500 again. This will make Walmarts forth year as No 1. Sales for Walmart went up 11% in 2004. The company that came in second on the Forbes list was Exxon Mobil. Walmart is still holding ground. I'm sure that this will even maintain through this year. I'm actually very interested, with gas price going up, and people being more concerned about every dollar they spend, do you think that this will only cause more people to shop at Walmart? In addition, if Walmart does have to raise its prices due to these factors, will people be disappointed that Walmart didn't stick with their motto, everyday low prices? I think people will still shop there, because even if they raise their prices they will still be even or lower than competitors, but because of a little incline may effect the feelings people have about shopping there. I'm curious about what you think. If Walmart was the same as everywhere else would you still drive accross town, or shop around.

9 comments:

Eric said...

Now way that’s one thing I love about Wal-Mart! You save time because you don’t have to shop around. Not only do you know that you’re getting a low price but you can find your product fast because if you know one Wal-Mart you know them all!

Harry said...

Depending on how much time I had if I had alot I would shop around. If I was in a hurry I would go there to get everything at once. The reason for this is because if I am going to pay the same price I might as well help out another company.

BOB said...

Marie makes some interesting points. If Wal-Mart had the same prices as everyone else, I would shop at the store closest to me. The only reason I currently go to Wal-Mart is because they offer lower prices. If they stop that, I stop going there.

sam said...

There is no way I am going to go shop around town and waste gas to find the cheapest groceries. If gas is so expensive I am not going to waste my gas to drive around town to some remote grocery store to find the cheapest groceries. The fact is if gas is so expensive then walmart is not the only store who faces rising prices. Walmart buys in bulk and all of there stores are relatively close to a freeway. This means that the cost per item is cheaper than any other store becuase they can spread the fixed cost of shipping over more goods. Also being located near a freeway means that the trucker does not have to use as much gas to get to the store. Usually this is the same for the consumer. If the price of gasoline is increasing the consumer is not only worried about prices of groceries, but also the amount of gas used to get there and back.

Keston said...
This comment has been removed by a blog administrator.
Keston said...

If I have a big shopping list then I will continue to go to Wal-Mart because I can get everything I need there. However if my list consisted of only a few items I would go to a store in town. To me it wouldn't be worth the gas price or my time to drive to Wal-Mart when there is another store close by with the same product.

3:33 PM

Dr. Tufte said...

-1 on Marie's post and Eric's comment for grammatical errors.

Is Wal-Mart shopping an inferior good? Probably so. That would imply that their business will improve as oil prices rise.

There's some good game theory in this post. If oil price increases force up wholesale prices, should Wal-Mart pass those costs on to retail shoppers (to try and preserve per-unit profits) or maintain low prices (to gain market share). Further, would the payoffs for those strategies depend on the choices of (say) Target?

Rudin Dchosta said...

Yes ofcourse............It's the great site....!!

Mars said...

I bet Walmart is on top again in 2008.