[Vision2020] Moscow's New Wal-Mart

Saundra Lund sslund at adelphia.net
Wed Mar 22 08:48:46 PST 2006


Hi Joe,

You asked:
"Is there any reason to think that this is what the Super Wal-Mart in
Pullman or Moscow will be like?"

In Moscow?  No way . . . how could you even ask such a question?  Don't you
read the posts here from a certain person about our community???  Remember,
we're *not* an affluent community; we're an economically disadvantaged town
that simply *must* have a regular Super Wal-Mart for all us "poor" people
who can't afford anything but to be penny wise & pound foolish and buy cheap
sh*t from a sh*tty corporation like Wal-Mart.

And, those of us who are against having a parasitic Wal-Mart build yet
another gawd awful value engineered building in our town are simply
prejudiced against all the economically disadvantaged.

Besides, even if Moscow wasn't too "poor" for an upscale Super Wal-Mart,
would you shop there?  Even if it had plasma TVs and "fine" jewelry <snort>
and a sushi bar?


Saundra Lund
Moscow, ID

The only thing necessary for the triumph of evil is for good people to do
nothing.
- Edmund Burke

***** Original material contained herein is Copyright 2005, Saundra Lund.
Do not copy, forward, excerpt, or reproduce outside the Vision 2020 forum
without the express written permission of the author.*****


-----Original Message-----
From: vision2020-bounces at moscow.com [mailto:vision2020-bounces at moscow.com]
On Behalf Of joekc at adelphia.net
Sent: Wednesday, March 22, 2006 6:12 AM
To: Dick Schmidt
Cc: vision2020 at moscow.com
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.

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