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	<title>Comments on: Wal-Mart Profits Drop for First Time in Decade</title>
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	<description>News and Views of Malls, Shopping Centers, and Retail Chains Past and Present</description>
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		<title>By: XISMZERO</title>
		<link>http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-28760</link>
		<dc:creator>XISMZERO</dc:creator>
		<pubDate>Fri, 14 Sep 2007 01:15:21 +0000</pubDate>
		<guid isPermaLink="false">http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-28760</guid>
		<description>Admittedly, I rather do my shopping at Target. Any day.

Most of the time, it&#039;s quiet (the humming of their A/C system and lack of stale music makes you feel aboard mothershiply terrain - even on weekends), clean, organized, and they&#039;ve always got original, &quot;hip&quot; line of product at great prices that attracts younger people. What can I say? They&#039;ve got creative ideas each season that really click with a modern generation - it&#039;s always fun to see what they&#039;ve got each week over there. 

Now I&#039;m often the one defending Wal-Mart in my circle (mainly for their perceived ills in business practices) but I will avoid shopping them at every opportunity even if means driving the extra mile(s) to find one. I have to say I can&#039;t stand the mess at my local Wal-Mart(s), the home goods and clothing are mostly ugly and undesirable. Plus, even if you walk in there to buy a few things, you&#039;re likely bound to stand in long lines. If you ask me, even if Wal-Mart saves you a few dimes, the crowd and mental anguish are taxing enough. 

Luckilly, Target&#039;s on the build to areas without stores around to combat Wal-Mart&#039;s domination on the landscape.

Friends of mine know just how much I cheerlead Target as a pleasurable shopping experience. In no way do I wish Wal-Mart ill nor am I celebrating their loses. I think they&#039;ve just got some work to do before they make my wandering eye look apart the bullseye. They may (debatable) have the best prices, but their selection is terribly ordinary and stores need some help.</description>
		<content:encoded><![CDATA[<p>Admittedly, I rather do my shopping at Target. Any day.</p>
<p>Most of the time, it&#8217;s quiet (the humming of their A/C system and lack of stale music makes you feel aboard mothershiply terrain &#8211; even on weekends), clean, organized, and they&#8217;ve always got original, &#8220;hip&#8221; line of product at great prices that attracts younger people. What can I say? They&#8217;ve got creative ideas each season that really click with a modern generation &#8211; it&#8217;s always fun to see what they&#8217;ve got each week over there. </p>
<p>Now I&#8217;m often the one defending Wal-Mart in my circle (mainly for their perceived ills in business practices) but I will avoid shopping them at every opportunity even if means driving the extra mile(s) to find one. I have to say I can&#8217;t stand the mess at my local Wal-Mart(s), the home goods and clothing are mostly ugly and undesirable. Plus, even if you walk in there to buy a few things, you&#8217;re likely bound to stand in long lines. If you ask me, even if Wal-Mart saves you a few dimes, the crowd and mental anguish are taxing enough. </p>
<p>Luckilly, Target&#8217;s on the build to areas without stores around to combat Wal-Mart&#8217;s domination on the landscape.</p>
<p>Friends of mine know just how much I cheerlead Target as a pleasurable shopping experience. In no way do I wish Wal-Mart ill nor am I celebrating their loses. I think they&#8217;ve just got some work to do before they make my wandering eye look apart the bullseye. They may (debatable) have the best prices, but their selection is terribly ordinary and stores need some help.</p>
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		<title>By: Jonah Norason</title>
		<link>http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-28737</link>
		<dc:creator>Jonah Norason</dc:creator>
		<pubDate>Thu, 13 Sep 2007 21:53:11 +0000</pubDate>
		<guid isPermaLink="false">http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-28737</guid>
		<description>If Wal-Mart went back to Sam Walton&#039;s original concept....things ALWAYS made in America, then Wal-Mart could estabilish a niche for itself. But greed always controls people and...well...tough luck for them.</description>
		<content:encoded><![CDATA[<p>If Wal-Mart went back to Sam Walton&#8217;s original concept&#8230;.things ALWAYS made in America, then Wal-Mart could estabilish a niche for itself. But greed always controls people and&#8230;well&#8230;tough luck for them.</p>
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		<title>By: Rich</title>
		<link>http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-28723</link>
		<dc:creator>Rich</dc:creator>
		<pubDate>Thu, 13 Sep 2007 18:46:11 +0000</pubDate>
		<guid isPermaLink="false">http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-28723</guid>
		<description>K-Mart has been adrift since the 80s. They had a great prototype for remodels in the mid-80s and, instead, started investing in non-core chains. They started building stores that didn&#039;t suck in the 80s, too, but not enough of them. Other stores basically were neglected for literally decades. If they can survive under these circumstances, Wal-Mart will, too. OTOH, Wal-Mart has undermined their basic business model. They are the cheapest on a very small number of items and otherwise are only comparable to the competition. They survive on people who lack options--those in small towns and those who lack the resources or desire to see what else is available. Their ever shrinking range of merchandise in many categories, the continually deteriorating service and obvious shortcomings in store management have driven out many of the middle class customers who once viewed Wal-Mart as the anti-KMart. Now, they go to Target, which is mch smarter at finding new ways for these people to spend their relatively healthy discretionary income. Wal-Mart has really failed to develop new high margin merchandise and has relied on low margin items like food and books to drive volume. Their profits increasingly come from check cashing fees and the like, They have failed even when they succeeded---they did well with new clothing lines for urban areas, but these tanked when they made the mistake of trying to sell them to small town &amp; exurban folks.

Wal-Mart isn&#039;t going away, but like K-Mart in the 80s, they&#039;ve lost their rudder. They&#039;ve put themselves into a position where they are stuck with low margin lines and a lack of new ones that can raise the bottomline. There aren&#039;t many more places to cut costs--their &quot;flexible&quot; labor scheduling was a pr disaster and probably would just accelerate the deteriorating service and stociking of the stores. The remaining markets for them are more expensive to enter and less politically friendly. Even in places like metro Atlanta, where developers routinely are allowed to build anything, Wal-Mart has run into public opposition. 

So, Wal-Mart will stick around, but they&#039;re stuck in a model that no longer works. Look for them to bumble along like Sears or K-Mart for many years, continuing to bleed customers and sources of profit. Wall Street is already interfering with their management, recommending smaller stores. Wall Street usually wrecks retailers (think most of the mainline department store chains)--they push selling assets and cutting labor, which is the kiss of death for a service business. The Waltons are a bunch of greedheads with no interest in the nuts &amp; bolts of the company. They and the institutional investors will soon be wanting ways to plump up the stock and the dividends. Between them &amp; Wall Street, we&#039;ll probably see the sale of Sam&#039;s Club (a relative failure) and some of the foreign operations--probably the the money losing Japanese stores. None of these moves will help the core business model. Unless, Wal-Mart can find real sources of new profit, they will continue on a long slide.</description>
		<content:encoded><![CDATA[<p>K-Mart has been adrift since the 80s. They had a great prototype for remodels in the mid-80s and, instead, started investing in non-core chains. They started building stores that didn&#8217;t suck in the 80s, too, but not enough of them. Other stores basically were neglected for literally decades. If they can survive under these circumstances, Wal-Mart will, too. OTOH, Wal-Mart has undermined their basic business model. They are the cheapest on a very small number of items and otherwise are only comparable to the competition. They survive on people who lack options&#8211;those in small towns and those who lack the resources or desire to see what else is available. Their ever shrinking range of merchandise in many categories, the continually deteriorating service and obvious shortcomings in store management have driven out many of the middle class customers who once viewed Wal-Mart as the anti-KMart. Now, they go to Target, which is mch smarter at finding new ways for these people to spend their relatively healthy discretionary income. Wal-Mart has really failed to develop new high margin merchandise and has relied on low margin items like food and books to drive volume. Their profits increasingly come from check cashing fees and the like, They have failed even when they succeeded&#8212;they did well with new clothing lines for urban areas, but these tanked when they made the mistake of trying to sell them to small town &amp; exurban folks.</p>
<p>Wal-Mart isn&#8217;t going away, but like K-Mart in the 80s, they&#8217;ve lost their rudder. They&#8217;ve put themselves into a position where they are stuck with low margin lines and a lack of new ones that can raise the bottomline. There aren&#8217;t many more places to cut costs&#8211;their &#8220;flexible&#8221; labor scheduling was a pr disaster and probably would just accelerate the deteriorating service and stociking of the stores. The remaining markets for them are more expensive to enter and less politically friendly. Even in places like metro Atlanta, where developers routinely are allowed to build anything, Wal-Mart has run into public opposition. </p>
<p>So, Wal-Mart will stick around, but they&#8217;re stuck in a model that no longer works. Look for them to bumble along like Sears or K-Mart for many years, continuing to bleed customers and sources of profit. Wall Street is already interfering with their management, recommending smaller stores. Wall Street usually wrecks retailers (think most of the mainline department store chains)&#8211;they push selling assets and cutting labor, which is the kiss of death for a service business. The Waltons are a bunch of greedheads with no interest in the nuts &amp; bolts of the company. They and the institutional investors will soon be wanting ways to plump up the stock and the dividends. Between them &amp; Wall Street, we&#8217;ll probably see the sale of Sam&#8217;s Club (a relative failure) and some of the foreign operations&#8211;probably the the money losing Japanese stores. None of these moves will help the core business model. Unless, Wal-Mart can find real sources of new profit, they will continue on a long slide.</p>
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		<title>By: Matt from WI</title>
		<link>http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-28645</link>
		<dc:creator>Matt from WI</dc:creator>
		<pubDate>Thu, 13 Sep 2007 07:06:08 +0000</pubDate>
		<guid isPermaLink="false">http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-28645</guid>
		<description>Well, in K-mart&#039;s case, their problem was, throughout all the 1990s decade, the corporate heads seemed to forget that over half their stores were old and some hadn&#039;t been remodeled at all.  (Not that I&#039;ve ever seen discount stores get full-blown renovations anyways....new paint jobs, new lighting, yeah, but not a full &#039;rip everything out and rebuild&#039; affair).  A simple rebranding (switching from the old &#039;red &quot;K&#039; / blue &#039;mart&#039; to the &#039;big red K with the &#039;mart&#039; inside&#039; logo) isn&#039;t enough.

Not to mention their faltering Builders Square chain, and ridiculous spending to acquire the OfficeMax and Waldenbooks chains, both of which they dumped within a mere 2-3 years anyways.

Give it a few more years...I&#039;ll bet K-mart will be another name joining the likes of Caldor, Woolworth, Ames, Zayre, Prange Way, Bradlees, etc, anchoring that big megamall in the sky.

Oh, and in my neck of the woods, I mention P-way around here...everyone I&#039;ve brought it up with so far has said that they miss the stores, as do I.</description>
		<content:encoded><![CDATA[<p>Well, in K-mart&#8217;s case, their problem was, throughout all the 1990s decade, the corporate heads seemed to forget that over half their stores were old and some hadn&#8217;t been remodeled at all.  (Not that I&#8217;ve ever seen discount stores get full-blown renovations anyways&#8230;.new paint jobs, new lighting, yeah, but not a full &#8216;rip everything out and rebuild&#8217; affair).  A simple rebranding (switching from the old &#8216;red &#8220;K&#8217; / blue &#8216;mart&#8217; to the &#8216;big red K with the &#8216;mart&#8217; inside&#8217; logo) isn&#8217;t enough.</p>
<p>Not to mention their faltering Builders Square chain, and ridiculous spending to acquire the OfficeMax and Waldenbooks chains, both of which they dumped within a mere 2-3 years anyways.</p>
<p>Give it a few more years&#8230;I&#8217;ll bet K-mart will be another name joining the likes of Caldor, Woolworth, Ames, Zayre, Prange Way, Bradlees, etc, anchoring that big megamall in the sky.</p>
<p>Oh, and in my neck of the woods, I mention P-way around here&#8230;everyone I&#8217;ve brought it up with so far has said that they miss the stores, as do I.</p>
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		<title>By: Jamie</title>
		<link>http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-28510</link>
		<dc:creator>Jamie</dc:creator>
		<pubDate>Thu, 13 Sep 2007 02:44:13 +0000</pubDate>
		<guid isPermaLink="false">http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-28510</guid>
		<description>I just hate to say it, but Walmart will probably never die.  Most people I talk to don&#039;t say they are going shopping, they say,&quot;I am going to Walmart&quot;,  ie, for groceries (especially for groceries!!), health/beauty, hardware/tools, electronics large and small, fans, towels, toilet paper, aspirin, shampoo and on and on, blah blah blah, you get the picture.  Then they come back and  complain about empty shelves, bad service, and sometimes high prices, and yet they go back again in a few days for all the stuff I mentioned above.   I don&#039;t think that walmart is all bad, but I think too many people think it is the only store for anything, period.  and it seems to be more and more people&#039;s only shopping outlet.  and they never go to any other type of store or store at all!! &quot;Oh I will just get it at walmart&quot; they say.  It is so pathetic how they are being suckered into thinking it is the greatest store on the planet and the only place you can find good prices and quality product (rolls eyes).  And as far as for saying the word Kmart, well that is a dirty word now.  When I mention I shop at Kmart, most people say they have not been to one in years.  I know they have closed over half there stores with all there troubles,  but it was like that before the huge round of store closures began

 But in the retail world now, it reigns supreme and probably will for many generations.  Children of today are being raised not to go shopping, but to go to Walmart, all those other stores you pass on the street on the way are just there if you can&#039;t find it at walmart first is what they probably think, who knows?</description>
		<content:encoded><![CDATA[<p>I just hate to say it, but Walmart will probably never die.  Most people I talk to don&#8217;t say they are going shopping, they say,&#8221;I am going to Walmart&#8221;,  ie, for groceries (especially for groceries!!), health/beauty, hardware/tools, electronics large and small, fans, towels, toilet paper, aspirin, shampoo and on and on, blah blah blah, you get the picture.  Then they come back and  complain about empty shelves, bad service, and sometimes high prices, and yet they go back again in a few days for all the stuff I mentioned above.   I don&#8217;t think that walmart is all bad, but I think too many people think it is the only store for anything, period.  and it seems to be more and more people&#8217;s only shopping outlet.  and they never go to any other type of store or store at all!! &#8220;Oh I will just get it at walmart&#8221; they say.  It is so pathetic how they are being suckered into thinking it is the greatest store on the planet and the only place you can find good prices and quality product (rolls eyes).  And as far as for saying the word Kmart, well that is a dirty word now.  When I mention I shop at Kmart, most people say they have not been to one in years.  I know they have closed over half there stores with all there troubles,  but it was like that before the huge round of store closures began</p>
<p> But in the retail world now, it reigns supreme and probably will for many generations.  Children of today are being raised not to go shopping, but to go to Walmart, all those other stores you pass on the street on the way are just there if you can&#8217;t find it at walmart first is what they probably think, who knows?</p>
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		<title>By: Matt from WI</title>
		<link>http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-28476</link>
		<dc:creator>Matt from WI</dc:creator>
		<pubDate>Wed, 12 Sep 2007 22:34:55 +0000</pubDate>
		<guid isPermaLink="false">http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-28476</guid>
		<description>Even when Wal-mart moved into my town (Fond Du Lac WI) in 1992, myself and my mom still shopped at Prange-Way until they went bust in 1996.  Wal-Marts are always too busy, too nosiy, too LARGE, and frankly their prices are NOT always the lowest possible on many items.  Quality of food items is crap (ie: meat, produce), and I won&#039;t be caught buying clothes from them either.  (Penneys, Kohls and ShopKo for my clothes, thanks)

That reason among others, is why I try to patronize my local ShopKo store for general merchandise, and will be hitting a grocery chain called Festival Foods for grocery items when they open next month.  Both chains are Wisconsin-based, and both kick Wally-World in the behind IMO.

The towns I feel the most for are the little ones where Wal-mart all but wiped out the central business districts and killed off any other outlying retail.</description>
		<content:encoded><![CDATA[<p>Even when Wal-mart moved into my town (Fond Du Lac WI) in 1992, myself and my mom still shopped at Prange-Way until they went bust in 1996.  Wal-Marts are always too busy, too nosiy, too LARGE, and frankly their prices are NOT always the lowest possible on many items.  Quality of food items is crap (ie: meat, produce), and I won&#8217;t be caught buying clothes from them either.  (Penneys, Kohls and ShopKo for my clothes, thanks)</p>
<p>That reason among others, is why I try to patronize my local ShopKo store for general merchandise, and will be hitting a grocery chain called Festival Foods for grocery items when they open next month.  Both chains are Wisconsin-based, and both kick Wally-World in the behind IMO.</p>
<p>The towns I feel the most for are the little ones where Wal-mart all but wiped out the central business districts and killed off any other outlying retail.</p>
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		<title>By: Margaret Duhon</title>
		<link>http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-28469</link>
		<dc:creator>Margaret Duhon</dc:creator>
		<pubDate>Wed, 12 Sep 2007 21:32:31 +0000</pubDate>
		<guid isPermaLink="false">http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-28469</guid>
		<description>Wal MArt SUCKS!!! I hate it,  I used to love my K Mart, TG&amp;Y, Woolco, &amp; Woolworths.  I miss all my fun old discount stores.  They move in and put all the cool stores out of business, ruin small town business districts and have a large percentage of the population suckered real good into thinking they are getting a good deal.  Milk at Kroger&#039;s here in Houston, Texas is a whole dollar cheaper then their inflated price. Their clothes are junk and hardly hold up to a 1st washing, Woolco had a better clothing quality.  I remember as a young teen I used to get great jeans and boots at Woolco and they held up a lot longer than Wal Mart Crap.  I even seem to remember that K Mart used to Sponser the Ms. Teen America Contest and every fall in the August issue of Teen, &amp; Seventeen they would show off their fall clothing line, which was much more stylish and trendy than Wal Mart.  I remember getting all my back to school clothes one year at K Mart and JC Pennny.</description>
		<content:encoded><![CDATA[<p>Wal MArt SUCKS!!! I hate it,  I used to love my K Mart, TG&amp;Y, Woolco, &amp; Woolworths.  I miss all my fun old discount stores.  They move in and put all the cool stores out of business, ruin small town business districts and have a large percentage of the population suckered real good into thinking they are getting a good deal.  Milk at Kroger&#8217;s here in Houston, Texas is a whole dollar cheaper then their inflated price. Their clothes are junk and hardly hold up to a 1st washing, Woolco had a better clothing quality.  I remember as a young teen I used to get great jeans and boots at Woolco and they held up a lot longer than Wal Mart Crap.  I even seem to remember that K Mart used to Sponser the Ms. Teen America Contest and every fall in the August issue of Teen, &amp; Seventeen they would show off their fall clothing line, which was much more stylish and trendy than Wal Mart.  I remember getting all my back to school clothes one year at K Mart and JC Pennny.</p>
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		<title>By: John</title>
		<link>http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-22014</link>
		<dc:creator>John</dc:creator>
		<pubDate>Tue, 07 Aug 2007 01:34:01 +0000</pubDate>
		<guid isPermaLink="false">http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-22014</guid>
		<description>History predicts that Wal-Mart will not last forever. It makes sense, since no retailer has lasted &quot;forever&quot;.</description>
		<content:encoded><![CDATA[<p>History predicts that Wal-Mart will not last forever. It makes sense, since no retailer has lasted &#8220;forever&#8221;.</p>
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		<title>By: Ice</title>
		<link>http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-278</link>
		<dc:creator>Ice</dc:creator>
		<pubDate>Fri, 25 Aug 2006 14:09:32 +0000</pubDate>
		<guid isPermaLink="false">http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-278</guid>
		<description>nothing would make me happier than to see wal-mart croak...they have moved into numerous hometowns(including my hometown of Carrollton GA and have a hard stranglehold on their market...and where i live now in Kansas City they seem to be popping up everywhere...Down with the Big Blue Box</description>
		<content:encoded><![CDATA[<p>nothing would make me happier than to see wal-mart croak&#8230;they have moved into numerous hometowns(including my hometown of Carrollton GA and have a hard stranglehold on their market&#8230;and where i live now in Kansas City they seem to be popping up everywhere&#8230;Down with the Big Blue Box</p>
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		<title>By: Caldor</title>
		<link>http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-266</link>
		<dc:creator>Caldor</dc:creator>
		<pubDate>Wed, 23 Aug 2006 17:20:09 +0000</pubDate>
		<guid isPermaLink="false">http://www.labelscar.com/retail-news/wal-mart-profits-drop#comment-266</guid>
		<description>I agree that I don&#039;t really see this as a huge sign of trouble, nor is it a harbinger of a great sea change (cats and dogs playing together!), but I do get the impression that Wal-Mart may have stretched the bounds of their business model. If they expect to continue to be successful, they will have to adapt. They may yet, but it remains to be seen.</description>
		<content:encoded><![CDATA[<p>I agree that I don&#8217;t really see this as a huge sign of trouble, nor is it a harbinger of a great sea change (cats and dogs playing together!), but I do get the impression that Wal-Mart may have stretched the bounds of their business model. If they expect to continue to be successful, they will have to adapt. They may yet, but it remains to be seen.</p>
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