Monday, December 8, 2008
WALMART'S RECESSION PROOF STRATEGY
With the worst holiday season among us, many retailers are suffering due to the lack of consumer discretionary spending. However, discount retailers such as WalMart are surviving the economic fall. The fact is that consumers are holding on to their cash for necessities. People will always need items for living such as food, clothes, health, and sanitary products (most of these necessities are produced by Proctor and Gamble). Its a simple strategy and WalMart has used it well. On their website's home page, the company features a tracker displaying the amount of money consumers are saving by shopping at WalMart. The company also has a new campaign with advertisements featuring average families sharing their story about saving money at WalMart (the new slogan: save money, live better). Recently, I purchased some items at a nearby WalMart and spent $18! Perfect spot for the holiday recession. A business that focuses on necessities will always do well if managed correctly. As for the rest of the retail industry, the holiday will be tough. Surprisingly, my visit to the mall this weekend provided me with a positive outlook for retailers this holiday. Shoppers were everywhere and high end retailers were making sales. Maybe there is hope; is this a sign of a stronger economy? As always, leave a comment.