[Vision2020] Moscow's New Wal-Mart

[Dick Schmidt]

Joe,

I doubt Wal-Mart will build something like this in Pullman or Moscow but 
wanted to agitate those who think the world is coming to an end if Wal-Mart 
builds either place. They may pull out all the stops to please those who are 
against them. All this "hell-raising" against Wal-Mart is not doing a lot 
for either town's image as other businesses will look other places to expand 
and Pullman and Moscow will stay as they are because many people want it 
that way. I think Moscow is probably being hurt more than Pullman because 
the Moscow City Council appears to be enacting "protectionist" measures for 
new large businesses. At one time I used to scout new locations for the 
company I worked for which was in the steel business. We used to open 
satellite warehouses to take care of a certain geographical area. Moscow 
wouldn't even start to be considered because of availability of adequate 
transportation in and out because of the poor roads north, south and east. I 
think Moscow needs to wake up and realize they are not a hot commodity.

Dick Schmidt

PS. New motto for UI  "From here you can go anywhere, north or south on the 
Goat Trail".

----- Original Message ----- 
From: <joekc at adelphia.net>
To: "Dick Schmidt" <44schmidt at earthlink.net>
Cc: <vision2020 at moscow.com>
Sent: Wednesday, March 22, 2006 9:12 AM
Subject: Re: [Vision2020] Moscow's New Wal-Mart


> Is there any reason to think that this is what the Super Wal-Mart in 
> Pullman or Moscow will be like? Will there be a sushi bar, for instance?
>
> --
> Joe Campbell
>
> ---- Dick Schmidt <44schmidt at earthlink.net> wrote:
>
> =============
> Here is an article about the new store coming to Moscow for all you 
> "upscale" shoppers! At least you will be able to find a parking place 
> which is very difficult to find on Main Street in Moscow.
>
> Dick Schmidt
> Wal-Mart Targeting Upscale Shoppers
>
> By DAVID KOENIG
> AP Business Writer
>
>
> PLANO, Texas (AP) -- Wal-Mart Stores Inc. has overcome its rural roots and 
> downscale image to attract affluent shoppers, but executives admit that 
> many of those well-heeled consumers come only for cheap groceries and 
> steer clear of the other merchandise.
>
> In its boldest effort yet to target upscale shoppers, the nation's largest 
> retailer is opening a new store this week with an expanded selection of 
> high-end electronics, more fine jewelry, hundreds of types of wine ranging 
> up to $500 a bottle, and even a sushi bar.
>
> Wal-Mart says it won't duplicate this format anywhere else. But if plasma 
> TVs, microbrewery beer and fancy balsamic vinegar sell in Plano, those 
> items could be added to stores in other affluent communities.
>
> Retail experts say nearly half of American families shop at Wal-Mart at 
> least once a week. They say the retail giant has nearly tapped out its 
> middle-class base and must attract consumers who love Target and Costco 
> but not Wal-Mart.
>
> With about 3,700 U.S. stores, Wal-Mart has nearly saturated the market, 
> and analysts say future growth depends on boosting sales by offering a 
> better shopping experience. The company is renovating 1,800 stores as many 
> of its older outlets have started looking a little tired.
>
> Wal-Mart profits keep rising, but not as fast as Wall Street expects, and 
> same-store sales, those at locations open at least a year, rose faster in 
> 2005 at smaller but trendier Target Corp. Wal-Mart stock has slipped about 
> 20 percent in the past two years while Target shares gained about the same 
> percentage. Wal-Mart shares rose 35 cents Tuesday, to $48.11, in a 52-week 
> range of $42.31 to $51.46.
>
> Analysts say that despite low prices, Wal-Mart suffers from a perception 
> that its merchandise is lower quality, which turns off consumers who can 
> afford better.
>
> "The challenge they face is value, and upper-end consumers define value 
> differently than a moderate-income shopper," said Patricia Edwards, who 
> helps manage retail funds for Wentworth, Hauser and Violich investment 
> counselors. "If it was just price, they would drink the office coffee 
> instead of going to Starbucks."
>
> In recent months, some Wal-Marts began selling upscale bed-and-bath items 
> and its new Metro 7 and no boundaries clothing lines - all of which are 
> highlighted in the new store.
>
> Wal-Mart listened to focus groups of "selective shoppers" - the company's 
> term for affluent customers - in designing the store, said regional 
> general manager John Murphy.
>
> "The upscale customer is shopping our store," Murphy said. "Are they 
> interested in everything we have to offer? No. This is a test store. Can 
> we make that leap to where they are interested in other parts of the 
> store?"
>
> Murphy said Wal-Mart hopes to prove it can reach affluent consumers, which 
> should help persuade vendors who are reluctant to sell their goods there. 
> Target has succeeded in selling designer lines.
>
> Don Gher, an analyst with Coldstream Capital Management, said it took 
> Target years to shift upscale and it won't happen quickly at Wal-Mart 
> either. In the meantime, he said the stores must guard against changing 
> too much, which could alienate its core customers.
>
> Gher predicted that Wal-Mart will succeed at selling high-end electronics 
> to upscale consumers, but selling them apparel will be more difficult. 
> "Fashion can be fickle," he said.
>
> The new store, which opens Wednesday, is 217,000 square feet, about 20,000 
> square feet bigger than the average Supercenter. It sits across the street 
> from a SuperTarget, and you can see Costco from the parking lot. The blue 
> and gray Wal-Mart exterior gave way to two-tone brick. Inside, wood floors 
> and wide aisles abound. Shelves are lower to reduce clutter. Even 
> employees look different in khaki pants and navy polo shirts instead of 
> blue smocks.
>
> The new store is just as notable for what's missing. The store won't sell 
> guns. It has far less space devoted to lawn and garden, fishing, camping 
> and automotive products.
>
> "This customer is telling us they're not doing it themselves," said Ryan 
> Lincks, the store's project manager. "They don't change their own oil."
>
> But the store has rows of high-definition televisions, several of them 
> over $2,000, plus pricier bikes and even an expanded yoga section. It 
> features an expanded baby clothes area, a cards and books section with 
> cherry-finish wood racks and arching halogen gallery lights, and baggers 
> at the checkout lines - a first for Wal-Mart.
>
> Hungry shoppers will search in vain for McDonald's. It has been replaced 
> by an espresso bar with a sandwich menu and free wireless Internet 
> service.
>
> Cosmetics and pharmacy aren't relegated to the far end of the store; 
> they're next to the food and wine because female customers in focus groups 
> said they want it that way for convenience and speed. Apparel areas have 
> their own cash registers and more discrete fitting rooms.
>
> But no layaways.
>
>