Walmart's "Project Impact": A Move to Crush the Competition

[CoffeeCat]

Source: Time Magazine

Walmart loves to shock and awe. City-size stores, absurdly low prices ($8 jeans!) and everything from milk to Matchbox toys on its shelves. And with the recession forcing legions of stores into bankruptcy, the world's largest retailer now apparently wants to take out the remaining survivors.

Thus, the company is in the beginning stages of a massive store and strategy remodeling effort, which it has dubbed Project Impact. One goal of Project Impact is cleaner, less cluttered stores that will improve the shopping experience. Another is friendlier customer service. A third: home in on categories where the competition can be killed. "They've got Kmart ready to take a standing eight-count next year," says retail consultant Burt Flickinger III, managing director for Strategic Resources Group and a veteran Walmart watcher. "Same with Rite Aid. They've knocked out four of the top five toy retailers, and are now going after the last one standing, Toys "R" Us. Project Impact will be the catalyst to wipe out a second round of national and regional retailers."

Though that's bad news for many smaller businesses that can't compete, Walmart investors have clamored for this push. Despite the company's consistently strong financial performance, Wall Street hasn't cheered Walmart's growth rates. During the 1990s, the company's stock price jumped 1,173%. In this decade, it's down around 24% (Walmart's stock closed at $51.74 per share on Sept. 3). "Walmart is under excruciating pressure from employees and frustrated institutional investors to get the stock up," says Flickinger. (Read "Can Toys "R" Us Sell Toilet Paper?")

(more at link)

Read more: http://news.yahoo.com/s/time/20090909/us_time/08599192069800

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I've got news for Walmart. You're not the only game in town and you're certainly not as invincible as you'd like to think.

I belong to a savings/coupon club. Yes, we're geeks--but we share information, coupons and insight about grocery deals around
town. I am all over town getting great deals and stockpiling stuff I get for free or cheap--and I have probably been to Walmart
three times in the past several months.

Local grocery stores, Target and other small chain groceries are really competing for our dollars. I think many people have caught on
that Walmart's prices aren't always the lowest.

Before Walmart gears up to destroy the retail world--they'd better check their corporate ego.

...I'm just sayin.