Wal-Mart vs Target

[FinanceDude]

As a former consultant for walmart, I've been up and down the east coast and visited many walmarts and I have never experienced this odor issue first hand. The really busy stores can frequently be messy because they do so much business 24-7. And yes, poor people exist and they shop there too because it is cheap and convenient.

I think there is this mental block for many when it comes to walmart - a former poster may have called it a "hairball". Kind of like the image and feelings that McDonald's or a thrift store evokes. One bad experience 20 years in the past cannot be countered by a plethora of more recent different experiences.

Agree.........

I don't think there's another full service grocer around that is consistently cheaper than WalMart. ONE example is this. The local store that a large number of folks shop at is owned by Roundys, its called Pick and Save. They have Campbells Chunky soup for $2.49 a can. When it goes on special it gets down to $2.19 a can.

EVERYDAY, WalMart has the SAME soup for $1.50 a can. It has been the same price for two years. That's just one example.......

 

[ziggy29]

ONE example is this. The local store that a large number of folks shop at is owned by Roundys, its called Pick and Save. They have Campbells Chunky soup for $2.49 a can. When it goes on special it gets down to $2.19 a can.

EVERYDAY, WalMart has the SAME soup for $1.50 a can. It has been the same price for two years. That's just one example.......

Sounds about like it is here. We have a grocery store here in town that's part of a local chain of small-town grocery stores. We never do most of our shopping there but just get a gallon of milk, a loaf of bread, that sort of thing.

The prices at this store are routinely 30-50% higher than at the HEB about 18 miles from here. So about 2-3 times a month we make that drive and stock up on stuff, only buying the onesie-twosie stuff we forgot to pick up before or for which a sudden need has arisen. Even when gas was $4 we saved a lot of money doing this, as a typical $100 basket of groceries there would probably cost $140-150 here in town, assuming they even had that much of a selection...

 

[REWahoo]

... the HEB...

HEB is a south TX grocery chain with the tag line "Here Everything's Better". The initials are actually those of the chain's founder, Howard E. Butt.

No, I'm not making this up...

 

[haha]

I think there is this mental block for many when it comes to walmart - a former poster may have called it a "hairball". Kind of like the image and feelings that McDonald's or a thrift store evokes. One bad experience 20 years in the past cannot be countered by a plethora of more recent different experiences.

Hey, don't you be dissin' McDonalds. My office is in the McDonalds at 3rd and Pine.

Ha

 

[Nords]

Folks should remember there are a LOT of older WallWorlds. Target is a new phenomenon in many markets. If the Target is 20 years newer, of course it looks better.......

The first Target in Honolulu opened up in the couple of weeks and got a very good reception.

A Maui friend made an Oahu trip last weekend for a taekwondo clinic just because she can shop at Target. I think most of the Kapolei Target's stock is being shipped to the neighbor islands one suitcase at a time.

I know that Target has been doing a lot of local hiring for their construction & staff, and there's no better time to expand than during the pits of a recession, but Mainland HQ must not trust their new hires yet. I don't know whether to be amused or offended by their mailer showing the cute young sundress-wearing hapa-haole woman ("housewife"?) carrying a shopping basket prominently displaying a can of Spam. It was like Home Depot's opening here a few years back when they were selling energy-efficient double-pane insulated windows but no jalousie parts.

We're going to paas on Target for a few more months to let the crowds fade out and to give the local managers a chance to stock products that Wal-Mart doesn't carry. Otherwise Hawaii's Targets will be gone by 2012...

BTW my friend mentioned in passing that the state's only Krispy Kreme franchise (in Kahului) is going out of business. Yet Leonard's Malassadas is probably training their third generation of ownership.

 

[FUEGO]

Hey, don't you be dissin' McDonalds. My office is in the McDonalds at 3rd and Pine.

Hey, I'm a big fan myself. All of our local McD's have been recently remodeled and look "upscale and refined" - flat screen HDTV's, faux fireplaces in some, stonework, plush leather seating, newspapers. Clean. Always fast service, generally good service too (as compared to your typical sit down restaurant). Coffee is good, premium coffee is great. Food off the dollar menu is worth every penny and then some.

And a family of 4 can eat for under $10 including dessert, then the kids can play in the Play Palace afterwords. What's not to like?

I would never go here and expect a premium hamburger experience. But it serves its purpose. Same as Walmart.

 

[ziggy29]

Hey, I'm a big fan myself. All of our local McD's have been recently remodeled and look "upscale and refined" - flat screen HDTV's, faux fireplaces in some, stonework, plush leather seating, newspapers. Clean. Always fast service, generally good service too (as compared to your typical sit down restaurant). Coffee is good, premium coffee is great. Food off the dollar menu is worth every penny and then some.

And a family of 4 can eat for under $10 including dessert, then the kids can play in the Play Palace afterwords. What's not to like?

Keep it up. I'm long MCD.

 

[FUEGO]

I don't think there's another full service grocer around that is consistently cheaper than WalMart. ONE example is this. The local store that a large number of folks shop at is owned by Roundys, its called Pick and Save. They have Campbells Chunky soup for $2.49 a can. When it goes on special it gets down to $2.19 a can.

EVERYDAY, WalMart has the SAME soup for $1.50 a can. It has been the same price for two years. That's just one example.......

I hardly ever go to a regular grocery store anymore. Maybe 1-2x per year. There is one about 1/4 mile from my house, and the cheapest of any of the chains in town. The regular prices are close to double walmart's, and even on sale buy one get one free, the stuff is only occasionally a few percent cheaper than walmart.

A buddy of mine who doesn't drive is constrained to shop at the "expensive" grocery store in downtown where he lives. We laugh because he will mention buying something, say a can of beans, and it will cost $1 for the store brand. Then I laugh (at his misfortune) and tell him how it is always $0.38 at walmart.

The campbell's chunky is a good example, very similar to our local prices. $2.49 normal price at cheapo chain grocery store. BOGO it's $1.25, only $0.25 cheaper than walmart. Not worth a separate trip unless I'm buying a few cases of it, which I never do since I have walmart to do my pantrying. Always low prices allow me to do just in time shopping.

 

[FUEGO]

Keep it up. I'm long MCD.

You're losing money on me. I think a lot of their $1 menu are loss leaders, and my kids eat A LOT (A LOT!!!) of ketchup. A LOT.

But hey, if you can make a profit off of me, great, because I definitely get value from MCD's.

 

[HFWR]

Most of my grocery shopping is done at WM. I'll stop at the local Tom Thumb, which is on the way home, for quick grabs.

As for MCD, or fast food in general, I'll eat it when I need something fast. No mistaking it for "food" though...

 

[ziggy29]

You're losing money on me. I think a lot of their $1 menu are loss leaders, and my kids eat A LOT (A LOT!!!) of ketchup. A LOT.

But hey, if you can make a profit off of me, great, because I definitely get value from MCD's.

I think it's the franchise owners that are losing the bulk of the money, not so much corporate. It was the franchisees who were begging corporate to allow them to take the Double Cheeseburger off the $1 menu because they were losing money on each sale. (And they were certainly making up for it in volume as it was the most popular item on that menu by a fairly wide margin, IIRC.)

Yeah, if the franchisees are losing money, probably corporate isn't making money off the sale, but...

 

[FUEGO]

I think it's the franchise owners that are losing the bulk of the money, not so much corporate. It was the franchisees who were begging corporate to allow them to take the Double Cheeseburger off the $1 menu because they were losing money on each sale. (And they were certainly making up for it in volume as it was the most popular item on that menu by a fairly wide margin, IIRC.)

Yeah, if the franchisees are losing money, probably corporate isn't making money off the sale, but...

You may be right - I think all our local MCD's that I frequent are franchises not corporate stores.

Back on the thread topic - I also love eating at a McD's located inside a Walmart. That's the ultimate in living a slumdog millionaire lifestyle.

 

[samclem]

When I came out I told DW that WM must have different standards and marketing plans based on the clientele. The trashy stores for the trashier neighborhoods.

Yes, I agree. I don't think it is a conspiracy by management, it's just that more affluent shoppers are less likely to tolerate a messy, smelly, dark store. Management probably also realizes that having stores like this in nicer neighborhoods will do damage to their brand that is very expensive to repair (e.g. they'll be perceived a twin to KMart). On the other hand, a run-down store in a poor neighborhood is not such a problem, as it's still probably the nicest place to shop in that neighborhood, poor people will put up with the environment to save money, and upscale shoppers are unlikely to shop there anyway and be adversely influenced by what they see.

Walmart does a tremendous amount of good for the poor, as this article points out.

In 2005, Walmart's lower prices saved consumers $200 billion. The average Walmart customer earns $35K per year (compared to $50 for Target and $74K for the average Costco customer.) A WAG would be that at least 1/4 of that $200 billion benefitted folks who are in poverty, a $50 billion benefit to the needy. The food stamp program handed out just $33 billion in benefits over the same period. The earned income tax credit handed out $40 biillion.

But, the Walmart benefit to the needy didn't cost me a thing, which is a considerable difference from the EITC and Food Stamps. And, it benefits people who are still poor but don't qualify for/don't want to take government assistance. In fact, I can benefit, too just by shopping at Walmart.

 

[freebird5825]

Yes, I agree. I don't think it is a conspiracy by management, it's just that more affluent shoppers are less likely to tolerate a messy, smelly, dark store...

It has never been the company I object to, it is what the general public does to the store and merchandise. My biggest aversion is the local clientele and their lack of personal hygiene and outrageous habits. I'm not a snob, just conscious of disease transmission and food safety. I've seen people open jars or containers, taste, and put them back on the shelf. I've seen people sneeze and cough, into their hands, and then paw the fruit.

I know about WalMart's philanthropic side. They are a major contributor to the Food Bank programs nationwide, as are other familiar food retailers.
Retailers

 

[HFWR]

The "yellow pages" says that I have 18 Walmart variations within ten miles...

The newer Supercenters rival Target for cleanliness, lighting, aisle width, etc. But the older WMs in more outlying/rural areas aren't usually as nice.

Having worked for a few Mom n Pop retail outlets, back in the bad ol' days, I can say that none offered a 401k, ESPP, insurance of any kind, and most paid well below the prevailing minimum wage.

In my perfect utopia, WM would use their considerable clout to improve environmental and worker-safety standards in the third-world factories making their [-]junk[/-] products, in addition to bargaining for ever "lower prices". This [-]would jack up their costs[/-] might even the playing field v. the cost to produce locally/regionally.

 

[RonBoyd]

Today's Jeopaerdy question:

Which two company's stock were the only ones to show an increase in 2008?

McDonalds 6% and Wal Mart up 18%.

Hmmmm. Just think how much money I wouldn't have lost if you guys would just wake up and shop where you are supposed to.

 

[Notmuchlonger]

It has never been the company I object to, it is what the general public does to the store and merchadise. My biggest aversion is the local clientele and their lack of personal hygiene and outrageous habits. I'm not a snob, just conscious of disease transmission and food safety. I've seen people open jars or containers, taste, and put them back on the shelf. I've seen people sneeze and cough, into their hands, and then paw the fruit.

I know about WalMart's philanthropic side. They are a major contributor to the Food Bank programs nationwide, as are other familiar food retailers.
Retailers

Lol reminds me to check and make sure that popper thing on top of the jar doesn't work! Yuck

 

[ziggy29]

Today's Jeopaerdy question:

Which two company's stock were the only ones to show an increase in 2008?

McDonalds 6% and Wal Mart up 18%.

I assume they said the only two stocks in the Dow 30?

 

[Dawg52]

I use Walmart for groceries about 50% of the time. There is a regular grocery store on the way home from the golf course that is just too convenient to pass up. This store has a pretty good cheap lunch in the deli so I'll pick up a few items when I'm buying lunch.

One thing I don't like about Walmart is if I'm shopping for groceries and need something like shampoo or vitamins, I've got to walk to the other side of the store to get it. Those kind of items should be closer to the grocery area. I guess I sound like some 80 year old fart.

 

[thefed]

off topic: I love walmart. i buy so much stuff there it's kinda crazy. consumerism at its best....buying consumables that are 'consumed' much more quickly because they are p.o.s. products made in china...but the 20% i save off of a better product elsewhere always sways me.

regardless, i love walmart. i buy everything there, groceries included. if you ever get the chance, watch the msnbc special on wal-mart ...its amazing to see behind the scenes

 

[clifp]

But the buyers of all those Chanel bags were the little Japanese girlies, right?

R

Don't know for a fact, but I suspect they were locals. The Costco (the 4th or 5th on the island) is located in a very out of the way spot for tourist, and isn't even near the outlet mall area.

 

[FUEGO]

One thing I don't like about Walmart is if I'm shopping for groceries and need something like shampoo or vitamins, I've got to walk to the other side of the store to get it. Those kind of items should be closer to the grocery area. I guess I sound like some 80 year old fart.

How could they get you to go by all their impulse item crap if you could get everything in one place in the store? Their floor layouts are carefully designed to get you to pass by higher margin items or discretionary/fun/holiday items.

Ever wonder why the milk is in the far rear of the store in one corner and the personal hygiene items on the diagonally opposite corner?

 

[clifp]

off topic: I love walmart. i buy so much stuff there it's kinda crazy. consumerism at its best....buying consumables that are 'consumed' much more quickly because they are p.o.s. products made in china...but the 20% i save off of a better product elsewhere always sways me.

regardless, i love walmart. i buy everything there, groceries included. if you ever get the chance, watch the msnbc special on wal-mart ...its amazing to see behind the scenes

I am not big Walmart shopper, but definitely have a grudging respect for the company. I think they are huge help for lower income people in the country, and second the recommendation for the cnbc special.

 

[Moemg]

I always had a low opinion of Walmart until I volunteered at the local food bank and saw how much Walmart donates . It was enlightening .

 

[Dawg52]

How could they get you to go by all their impulse item crap if you could get everything in one place in the store? Their floor layouts are carefully designed to get you to pass by higher margin items or discretionary/fun/holiday items.

Ever wonder why the milk is in the far rear of the store in one corner and the personal hygiene items on the diagonally opposite corner?

I'm so pissed by having to walk the length of the store, I can barely see straight. So impulse buying is rare.