[Vision2020] Wal-Mart a friend to those on a limited budget....

[Ron Force]

There's a story in today's New York Times:
http://www.nytimes.com/2006/03/03/business/03walmart.html
(free, but registration required)

about Wal-Mart's increasing dominance in groceries,

"Coke's new game plan underscores Wal-Mart's growing power in the grocery
business. With nearly 2,000 supercenters in the United States and plans for
280 more this year, Wal-Mart is the country's largest food retailer,
according to Retail Forward, a research firm in Columbus, Ohio. Data from
food and beverage companies indicates that Wal-Mart represents 14 percent to
18 percent of all food and beverage sales."

and how food companies, like Coke and Pepsi are willing to change their
products to meet Wal-Mart's specifications.

Coke agreed to distribute their sport drink directly to Wal-Mart, bypassing
their local and regional franchised bottlers.

"A group of Coca-Cola bottlers have filed suit to block a national
introduction of the new distribution system, saying the arrangement violates
their contract.

Marc Greenberg, an analyst at Deutsche Bank, said Wal-Mart wants to
strengthen Powerade's position in the sports drink market, which is
dominated by Gatorade with its 80 percent market share. "Wal-Mart wants
competition," Mr. Greenberg said. "They love that Coke and Pepsi kill each
other in colas to service them. They love everything where you have close
market shares because without that you don't have high relative profits in
the category."

Analysts predict that with Coke delivering Powerade directly to Wal-Mart
warehouses, the retailer will be able to increase its margins. Bill
Pecoriello, a beverage analyst at Morgan Stanley, estimates that by taking
out the middleman, Coke could reduce Powerade's price to Wal-Mart by 5
percent.

Assuming Wal-Mart does not raise the retail price, Mr. Pecoriello wrote in a
report last week, Wal-Mart's gross margin on Powerade would rise to 30
percent from the current 20 percent."

**********************************************
Ron Force          Moscow ID USA
force at moscow.com
**********************************************
-----Original Message-----
From: vision2020-bounces at moscow.com [mailto:vision2020-bounces at moscow.com]On
Behalf Of Donovan Arnold
Sent: Thursday, March 02, 2006 5:42 PM
To: DonaldH675 at aol.com; vision2020 at moscow.com
Subject: Re: [Vision2020] Wal-Mart a friend to those on a limited budget....


Don,

What ignorant gibberish you write.

I bet you 100 bucks the Pepcid AC I buy at Wal-Mart is the exact same Pepcid
AC I buy at Safeway on occasion for $2 more. The Sony Playstation, made the
same as the one at ShopKo, as well as the games.

And Wal-Mart does not FORCE anyone to do business with them, in fact,
businesses compete for the privilege.

Yes, Wal_Mart does sell some inferior products for a lesser price, but not
everyone has $80 for a pair of good jeans or needs a pair that well made,
$11.50 is all they have and $11.50 is all they need. Should you not be
equally outraged at the retailers that just stick a different label on a
pair of clothing and sell it for 300% more?

Do you honestly think lower income people do not know how to shop wisely?
Your rhetoric, Don, has grown outlandish and to the point where you are
writing anything with no regard for reality, truth, fairness or honesty.


_DJA

DonaldH675 at aol.com wrote:
Wrong again Donovan. Walmart offers cheaper prices by selling cheaper goods.
The items Walmart sells are not there same as the items other stores sell
under the same manufacturers name. Walmart uses its buying power to force
its suppliers to produce cheaper and shoddier goods under the same name.
Take Levi's for example. The Levi's Walmart sells are not the same Levi's
that Tri-State sells, but a lower quality. The fabric is lighter and the
manufacture is not the same quality.
It strikes me that Walmart is to merchandising as Payday Loan places are to
banking; a way to cheat the poor and uni! nformed into paying HIGHER prices
for cheaper goods.

Don Huskey

"First they ignore you, then they laugh at you, then they fight you, then
you win." Mahatma Gandhi
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