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Question for Business Types. Why has Wal Mart done so well?
#79636
11/11/04 11:48 PM
11/11/04 11:48 PM
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Joined: Jul 2001
Posts: 90 Texas
Robert DeNiro
OP
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OP
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Joined: Jul 2001
Posts: 90
Texas
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Yeah, I know K-Mart is still in business but they are about 5% of what Wal Mart is in the big picture of things. For people who are familiar with both business models, whats the difference? Why did Wal Mart do so well, and K-Mart not? Why hasnt there been more competition for Wal Mart i.e..another large retailer opening up to take a chunk outta WMs consumer share?
I'm just curious. Share your thoughts.
Fredo, you're my older brother and I love you, but dont ever take sides with anyone against the family again
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Re: Question for Business Types. Why has Wal Mart done so well?
#79637
11/12/04 12:37 AM
11/12/04 12:37 AM
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Joined: Jan 2003
Posts: 1,886 Folsom Prison
DonFerro55
Underboss
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Underboss
Joined: Jan 2003
Posts: 1,886
Folsom Prison
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Well, Walmart had gotten a firm grasp on the "great" reletivly new idea of monopolization. You see, they buy out all the "mom and pop" stores. They completely overtake all other supermarkets. They locate themselves everywhere and force people to go there. It's a brilliant ideology of marketing but, unfortunetly, one that allows few others to take a piece of the pie. By removing the competition and locating yourself everywhere, you have created an iffalable system for creating a monopoly. Capitialism at work, baby. There is no way to stop it. Unless you vote Democrat that is. :p Doc P.S. By the way, I'm not a business type. This is just how I believe it works.
And you liar, teller of tall tales: you trample all the Lord's commandments underfoot, you murder, steal, commit adultery, and afterward break into tears, beat your breast, take down your guitar and turn sin into a song. Shrewd devil, you know very well that God pardons singers no matter what they do, because he can simply die for a song.
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Re: Question for Business Types. Why has Wal Mart done so well?
#79638
11/12/04 12:49 AM
11/12/04 12:49 AM
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Joined: Jul 2001
Posts: 991 New York
DonsAdvisor
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Underboss
Joined: Jul 2001
Posts: 991
New York
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See: http://www.duke.edu/~dat6/Wal-Mart.htm Walmarts operations, just-in-time inventory, distrubtion hubs (i.e. if you plot the stores on a map, they form a big circle around a distribution center) and things you don't see are what maked them most efficient. They give consumers what they want.
"A refusal is not the act of a friend"
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Re: Question for Business Types. Why has Wal Mart done so well?
#79639
11/12/04 02:42 AM
11/12/04 02:42 AM
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Joined: Apr 2004
Posts: 4,206 Los Angeles
Letizia B.
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Underboss
Joined: Apr 2004
Posts: 4,206
Los Angeles
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Sam Walton wrote a book called "Sam Walton: Made in America," about his success. You could check that out.
BTW, the Waltons are #6, 7, 8, 9, and 10 on the Forbes list of the world's richest people. Well, technically, they're all tied at #6, but they're separate. Just a little interesting side note.
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Re: Question for Business Types. Why has Wal Mart done so well?
#79640
11/12/04 04:24 AM
11/12/04 04:24 AM
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Joined: Jul 2001
Posts: 22,902 New York
SC
Consigliere
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Consigliere
Joined: Jul 2001
Posts: 22,902
New York
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Originally posted by Letizia B.: BTW, the Waltons are #6, 7, 8, 9, and 10 on the Forbes list of the world's richest people. Well, technically, they're all tied at #6, but they're separate. Just a little interesting side note. They all got their Bentonville bucks from Daddy. If Big Sam was still alive he'd be the world's richest man (way ahead of Bill Gates).
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Re: Question for Business Types. Why has Wal Mart done so well?
#79644
11/12/04 09:31 AM
11/12/04 09:31 AM
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Joined: Oct 2002
Posts: 1,086 The Bright Side Of The Road
Senza Mama
Underboss
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Underboss
Joined: Oct 2002
Posts: 1,086
The Bright Side Of The Road
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Originally posted by Letizia B.: BTW, the Waltons are #6, 7, 8, 9, and 10 on the Forbes list of the world's richest people. Well, technically, they're all tied at #6, but they're separate. Just a little interesting side note. My, they've come a long way from that mountain and the house with paper walls. Night, night John Boy.
Tom: "They shot Sonny on the causeway...he's dead." Michael: "Turnbull is a good man" Shane MacGowan: "It was Christmas Eve babe, in the drunk tank"
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Re: Question for Business Types. Why has Wal Mart done so well?
#79646
11/12/04 08:53 PM
11/12/04 08:53 PM
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Joined: Mar 2003
Posts: 12,724
Double-J
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Joined: Mar 2003
Posts: 12,724
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I prefer Target, but their prices are slightly higher. Wal-Mart's success has been pointed out from an economic standpoint nicely by DonsAdvisor.
Wal-Mart, at least the closest one to 'us,' is quite unwelcoming to shop in. It seems to attract "riff-raff" and the eisles are overcrowded with pushy people. Not pleasant. There is one, a Supercenter, that is cleaner, and much more friendly to the customer located about 30-45 minutes away, but it also has more of a selection. It's fun to visit, but it's not my #1 shopping destination. I still prefer specific stores.
If I want a baseball glove to play 1st base (my position), I go to the local sporting goods outlet, or, for a bigger selection, the Dick's franchise.
If I want a new washer/dryer, I go to an appliance store.
If I want a new guitar, I go to a musicians shop.
I go to Wal-Mart if I want something quick, easy, and cheap (although they don't have girls...yet :p ).
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Re: Question for Business Types. Why has Wal Mart done so well?
#79650
11/16/04 03:01 PM
11/16/04 03:01 PM
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Joined: Mar 2003
Posts: 12,724
Double-J
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Joined: Mar 2003
Posts: 12,724
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Originally posted by Partagas: [quote]Originally posted by Double-J: [b] If I want a baseball glove to play 1st base (my position), I go to the local sporting goods outlet, or, for a bigger selection, [b]the Dick's franchise. [/b] You sure those gloves are for your hands? [/b][/quote]lol, Part, you'll have to show me the 'proper' way to use a catchers mitt, you big stud. :p :p :p :p
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Re: Question for Business Types. Why has Wal Mart done so well?
#79651
11/17/04 01:02 PM
11/17/04 01:02 PM
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Joined: Jul 2001
Posts: 14,900
Beth E
Crabby
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Crabby
Joined: Jul 2001
Posts: 14,900
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Maybe this will solve Kmart's woes.
Kmart, Sears to Merge in $11 Billion Deal By MEGAN REICHGOTT, Associated Press Writer
CHICAGO - The discount retailer Kmart Holding Corp. is combining with one of the most venerable names in U.S. retailing, Sears, Roebuck & Co., in an $11 billion deal that will create the nation's third largest retailer.
The company being created by the surprise combination announced Wednesday would be known as Sears Holdings Corp., but will continue to operate the Kmart and Sears stores under their current brand names.
The combined company is expected to have $55 billion in annual revenues, 2,350 full-line and off-mall stores, and 1,100 specialty retail stores. That will mean it will trail only Wal-Mart Stores Inc. and Target Corp. among the biggest U.S. retailers.
It will be headquartered in the northwestern Chicago suburb of Hoffman Estates, where Sears has its headquarters, but will maintain a "significant presence" in Troy, Mich., where Kmart is based.
Under the agreement, which was unanimously approved by both companies' boards of directors, Kmart shareholders will receive one share of new Sears Holdings stock for each Kmart share. Sears, Roebuck shareholders can choose $50 in cash or half a share of Sears Holdings stock. That portion of the deal values Sears shares at $11 billion, a 10.6 percent premium over its value at Tuesday's close.
Kmart chairman Edward Lampert will be the chairman of Sears Holdings, while Sears CEO Alan Lacy will be vice chairman and CEO of the new company. The new 10-member Sears Holdings board will have seven members from Kmart and three from Sears.
"The merger will enable us to manage the businesses of Sears and Kmart to produce a higher return than either company could achieve on its own," Lampert said in a press release.
The merger, expected to close by the end of March 2005, is subject to approval by Kmart and Sears shareholders, regulatory approvals and customary closing conditions.
Kmart filed for Chapter 11 bankruptcy protection in early 2002, leading to the closing of about 600 stores, termination of 57,000 Kmart employees and cancellation of company stock. The retailer emerged from bankruptcy in May 2003 and in March posted its first profitable quarter in three years.
Mired in a retail slump, Sears had long fallen out of favor on Wall Street after losing ground to competitors and enduring sluggish sales for years. The company last fall introduced its Sears Grand stores, which offer grocery and convenience items besides traditional Sears fare such as clothing, home appliances and tools. The concept had delivered promising results for the struggling retailer at its first three stores in metropolitan Salt Lake City, Las Vegas and Chicago, in the suburb of Gurnee.
Kmart, in recent years, has been shedding many of its underperforming stores, a strategy that has helped the once-struggling discount retailer bounce back after it emerged from bankruptcy. Kmart recently agreed to sell 50 stores to Sears for $575 million as part of that strategy.
Kmart's earnings have been improving. On Wednesday, Kmart posted its fourth straight quarterly profit. Its net income in the third quarter ended Oct. 27 reached $553 million, or $5.45 per share, compared with a loss of $23 million, or 26 cents per share, for the same period a year ago.
Its stock price has risen nearly seven-fold to $101.22 on Tuesday from $15 a share when it emerged from bankruptcy.
In recent weeks, it appeared that Sears could be shifting toward a similar real estate strategy after the disclosure that Vornado Realty Trust, a real estate investment trust, had purchased a 4.3 percent interest in the department-store chain. That move left the impression that the value of Sears' real estate holdings may be not be fully reflected in its stock price. Since that Nov. 5 announcement, Sears' stock has jumped 25 percent. It closed at $45.20 in trading Tuesday on the New York Stock Exchange.
Company officials said the merger would help make their properties more profitable through a broader retail presence and improved operational efficiency in areas such as procurement, marketing, information technology and supply chain management.
"The combination will greatly strengthen both the Sears and Kmart franchises by accelerating the Sears off-mall growth strategy and enhancing the brand portfolio of both companies," Lacy said. "This will clearly be a win for both companies' customers while significantly enhancing value for all shareholders."
The merger will not affect agreements to carry home and fashion lines including Martha Stewart Everyday, Lands' End and Sesame Street, the companies said.
How about a little less questions and a lot more shut the hell up - Brian Griffin
When there's a will...put me in it.
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