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Walmart's Project Impact: A Move to Crush Competition
Walmart came up with a new stradegy to bankrupt competition by being the world's largest retailer and their stradegy is called Project Impact. One of the goals are to have the stores less cluttery and more clean for customer's comfort while shopping, second goal is to have the customer service team more friendlier and thier third goal is to have home in categories where the competition would be stomped. Retail consultant, Burt Flickinger III, managing director for Stategic Resources Group says "They've got Kmart ready to take a standing eight-count next year,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.
Investors are happy with the new CEO Mike Duke because of the way Walmart stay a consistant winner throughout the recession.
While most retailers are shutting down stores, Walmart has opened 52 Supercenters since Feb. 1. Joseph Feldman, retail analyst at Telsey Advisory Group, estimates that each store costs Walmart between $25 and $30 million. In order to continue the momentum that it has picked up during the retail recession, over the next five years the company plans to remodel 70% of its approximately 3,600 U.S. stores.
Lance De La Rosa, Walmart's Northeast general manager, has defined Project Impact as an "easier shopping experience for customers, we've brightened up the stores and opened things up to make it more navigable."
One of the most noticeable changes is that Project Impact stores reshape Action Alley, the aisles where promotional items were pulled off the shelves and prominently displayed for shoppers. Those stacks both crowded the aisles and cut off sight lines. Now, the aisles are all clear, and you can see most sections of the store from any vantage point. For example, standing on the corner intersection of the auto-care and crafts areas, you can look straight ahead and see where shoes, pet care, groceries, the pharmacy and other areas are located. And the discount price tags are still at eye level, so the value message doesn't get lost
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Recommendations (14)
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Spydermonkey
huntsville, Alabama, United States -
Rhonda J Mangus
North Tonawanda, New York, United States -
Barry ORegan
Burnaby, British Columbia, Canada








Most RecentMost Recommended Comments (9)
at 17:34 on September 9th, 2009
They did this to the Wal-Mart in my town. Now everyone goes to the actual grocery store to shop. It was the best thing to happen for them. Broke them from the Wal-Mart habit. Forget trying to find anything useful in the new style store.
at 19:54 on September 9th, 2009
Ok, so by knocking out the competition they are setting themselves up to be a monopoly. What this news article doesn't mention (as do some others), is that one of their objectives is to knock out Toys R Us! I am not affiliated with Toys R Us whatsoever except that it is a store that so many of us have grown up with and feelings aside, where is the free market economy? Competition is good but with too many pockets to be filled, this is what we are faced with. It's great to be thrifty, whether in today's economy or yesterdays but enough is enough. Next we'll see our government taking Wal-Mart over after the national health care is passed.....or have they already? Time for me to step off my soapbox and for others to chime in. People please wake up!
at 20:07 on September 9th, 2009
Welcome to the big Yellow Smiley Face of China, where everything we buy comes from Asia, including lead toothpaste, how else can china get rid of its lead polluting products, ,,mmm in toys, and foodstuffs.
at 20:25 on September 9th, 2009
Agreed Barry, however the motto has always been, "business is business." Thus we not only facilitate the behavior but encourage it. And we encourage it to the point that we ourselves have been doing the polluting for decades...just look at most if not all of the junk we're buying that we call "food" and other goods around our homes whether they are made in China or the U.S. I wonder if Sam Walton would allow his company to go this route if he were alive still....unfortunately, it seems as though most will take the stacks of numbered green paper over anything.
at 20:37 on September 9th, 2009
I agree Tony, consumers drive it, to the deteriment of North American Manufacturing jobs, thus creating unemployment, higher taxes to pay for the unemployment and benefits, not to mention the loss of tax revenue to the country and state or province the manufacturing plant was located, as well as your children's employment future . So you see Walmart is not so cheap after all when you see the Big Yellow Smiley Face Picture.
at 21:00 on September 9th, 2009
I agree with your posting above, Barry. When one looks at the entire picture, the real picture, we are paying so much more...order out of chaos. Now if everyone else could only see it. Power Players not included, of course.
at 22:19 on September 9th, 2009
Looking back through history, the top merchant nations always had the most power. If we can only figure out a way to outsource our energy, healthcare, and food, the US will become just another 3rd world country. yaaaay
at 06:03 on September 10th, 2009
Wal Mart's service is the worst!! Just because they have the lowest prices makes them think they can treat customers however they want to--and it is always rudely! I am fortunate to be able to pay higher prices and shop @ businesses that treat their customers with respect, dignity, and as if they really matter! Hometown service is priceless! Why does Wal Mart want to "crush" their competition anyway? Is it always about the profit? What about business ethics, keeping manufacturing jobs in the USA, CHOICES, etc? I will continue to boycott this store and pay a higher price where I receive service with a smile:)
at 09:45 on September 13th, 2009
Well Daisy Shoemaker, unfortunately "business ethics" is sometimes an oxymoron....and yes, it is about the profits. Remember that Wal-Mart as a business, has shareholders and they have a responsibility to the shareholders. Sometimes this makes for quite a dilemma, both ethical and economical, but one will win out nonetheless.