Tuesday, January 22, 2008
Wal-Mart opens door for cultural competition
Wal-Mart is open the door for culturally-minded storeowners by discontinuing more than 1000 magazines from the list of titles its stores can carry. Most magazines on the list has specific cultural demographics allowing for other merchants targeting that demographic have a competitive advantage over Wal-Mart's narrow offerings.
Wal-Mart has long left the door open to other retailers to find successful niches enabling them to survive side-by-side. Targeting specific cultures with merchandise offers smaller retailers, and everyone's a small retailer, to meet the needs and desires of specific groups within their community. These magazines offer another commerce niche to exploit when attracting culturally specific customers.
Among the magazines that were cut from the Wal-Mart approved list are Better Homes and Gardens, which is still popular for women -- particularly those in the Baby Boomer and Builder/Traditionalist generations. Condé Nast and The Economist were cut, providing an opportunity for those reaching out to the affluent culture.
Eliminating the titles is not an indication the magazines are not sellable, profitable, or desirable for other stores. It is merely keeping within Sam Walton's established culture of narrow product offerings. By limiting the number of products within any individual category or target group, Wal-Mart is able to keep their UPC catalog smaller to improve cash register efficiency. In the case of merchandise that flows through the distribution centers, narrowing the product mix allows them to handle fewer products and higher quantities which reduces handling and carrying costs.
Wal-Mart’s weaknesses
Wal-Mart is open the door for culturally-minded storeowners by discontinuing more than 1000 magazines from the list of titles its stores can carry. Most magazines on the list has specific cultural demographics allowing for other merchants targeting that demographic have a competitive advantage over Wal-Mart's narrow offerings.Wal-Mart has long left the door open to other retailers to find successful niches enabling them to survive side-by-side. Targeting specific cultures with merchandise offers smaller retailers, and everyone's a small retailer, to meet the needs and desires of specific groups within their community. These magazines offer another commerce niche to exploit when attracting culturally specific customers.
Among the magazines that were cut from the Wal-Mart approved list are Better Homes and Gardens, which is still popular for women -- particularly those in the Baby Boomer and Builder/Traditionalist generations. Condé Nast and The Economist were cut, providing an opportunity for those reaching out to the affluent culture.
Eliminating the titles is not an indication the magazines are not sellable, profitable, or desirable for other stores. It is merely keeping within Sam Walton's established culture of narrow product offerings. By limiting the number of products within any individual category or target group, Wal-Mart is able to keep their UPC catalog smaller to improve cash register efficiency. In the case of merchandise that flows through the distribution centers, narrowing the product mix allows them to handle fewer products and higher quantities which reduces handling and carrying costs.
Wal-Mart’s weaknesses
Smart local storeowners know they can compete very effectively with Wal-Mart through wider product offerings, unique local products, and enhanced customer service. These are Wal-Mart's three weaknesses, which the giant corporation is willing to risk as none of the three can be profitably overcome without sacrificing even more profitable areas of their operation.
Labels: Business, Economic, gender
¶ 1/22/2008
