By Joel M. Albrizio, President

"Walmart Replaced Woolworth On The Dow Jones Industrial Average"....Could Walmart Ever Be Displaced From The Dow?

In this article we take an interesting look at how the invincible Walmart & its shareholders lost 100 Billion in equity (market cap) during 2015.  What the retail world has learned about marketing demands Walmart redefine itself.

When Walmart moves into the conventional supermarket retailers world the landscape and subsequent strategy changes forever. Yes, Walmart is a game changer in food retail.

While every retailer in every shape and size looks in some manner shape or form to sell food.....

Walmart is different.

Walmart sells almost everything sold anywhere in almost every retail category including food. When you have one retailer who sells so many different products under one roof most people at one time or another must visit Walmart. So imagine a supercenter where almost every segment of almost every demographic must visit.

Walmart Though It's Enormous SKU Listing Becomes The Largest Continuity Program In The World!

For most of us, at one time or another through necessity will have to visit Walmart. Even if only to find the simplest of items no longer available anywhere else in town.

Once we have entered "The Walmart Web Of Specials" we have become the latest invitee to the cult like world in search of a deal. Thats right, it almost just comes over you....where is that great deal, I know its here somewhere?

You went in for duct tape and leave with Triscuits, a bottle or two of flavored water, a box of protein bars and you or someone else will have to buy that t-shirt that says U.S.A. or Spiderman all over it.

This is what happens "IF" you avoid the supermarket within Walmart.

Then one day you experience what happens when you decide to enter that new world of "Walmart food retail".

Even the perishables are almost no longer perishable. At Walmart they seem to last forever!

Ever Wondered How Walmart Ground Beef Is Bright Red For A Week?

Seriously? Fresh ground beef thats fresh 3-4 days after you take it home. How does Walmart do everything so well and always succeed? As of late retail professionals are coming to understand Walmart may have an achilles heel. With that understanding retailers other than Walmart are finding success.

Is it the more parochial product choices of the now shopping millennials? Could it be Walmart has private labeled itself into a brand without a brand? Is it the retail industry has lower price points almost everywhere so the Walmart price impact is gone?

It seems while many of these headwinds for Walmart are logical, perhaps even predictable it may be the now more experienced retail food executive is less intimidated by the super retailer.

Through experience the supermarket retailer has found a way to survive and for some thrive right along side of Walmart.

In 2015, Walmart stockholders lost almost one third of its market cap as a publicly traded company. While equities may go up and down Walmart stockholders lost close to 100 BILLION dollars in equity during 2015!

As A Shareholder, Thats When You Say...
Who Moved My Cheese.... My 100 Billion Of Cheese!

Understanding as a food retailer that Walmart is likely to be there for all of our lifetimes and its possible to even find a Walmart bag in your Mom's Pantry, Walmart can and will relinquish sales. We must adhere to what we have learned about and how to battle with this retail goliath.

The supermarket operators who now understand the difference between marketing and advertising will do very well.

Marketing is advertising while following a plan with its accompanying story to find retail success. As we have discussed in previous articles, marketing is when we develop a plan that articulates and then advertises your retail organization and its strengths through print or digital.

Now with that plan we add the companies markdown budget strategically, then we add the favorable price points executing the advertising portion of the companies latest call to action. Simply stated our advertising through our marketing plan.

Fully understanding the importance of branding your retail organization as an easily definable retail entity is step one. In the process of step two we begin adding price points creating the value proposition or the companies completed advertising.

Following these simple steps allows the supermarket retailer the opportunity to contain your customers Walmart experience to the purchase of a few fun items and not the next great place to shop for dinner.

Wait, Did We Say Dinner?

As we begin to advertise we will build ads with meal planning in mind. We do not want or need an e-bay feel to any ad. We would like to invite the customer to frequent our store to shop for meals. We intend to build basket size.

Let your advertising vehicles, be it print or digital, describe who you are as a retail organization with price points that are respectable and tie in to one another for the purpose of meal planning.  Couple this with service and Walmart is no longer infallible.

Just ask any Walmart stockholder who has participated in the 100 Billion dollar loss of capital investment if other retailers have had an impact.

"Let That Next Success Story Be You"

Thank-you for your support and ideas.

 

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