COKid Posted August 10, 2014 Share Posted August 10, 2014 Walmart may not go the way of RadioShack (RSH) any time soon. But Goldman Sachs says that customers are abandoning the big-box pioneer in droves. On Tuesday, the investment bank downgraded Walmart (WMT)'s stock to 'Neutral,' saying that big-box stores are losing out to online retailers and stores with more focused inventories. With $469 billion in annual sales, Walmart isn't quite going out of business, but the retailer has seen sales slip for five straight quarters. Online shopping is clearly hurting the store, as more customers turn to Amazon (AMZN, Tech30) and other merchants for everyday items such as hardware and groceries. E-commerce is making Walmart's vast breadth of merchandise less appealing to shoppers. Instead, customers are looking for better deals on a more narrow assortment of goods available at stores like Costco (COST) and dollar stores. The bank upgraded Costco's stock to Buy. Goldman noted that Amazon's move into grocery sales is the biggest threat facing Walmart and a risk to Costco. Despite the bank's pessimism about big-box retailers, maintained a 'Buy" rating on Target (TGT). Source and rest of article: http://money.cnn.com/2014/07/30/news/companies/goldman-walmart-downgrade/index.html?hpt=hp_bn6&iid=obnetwork I'm not a fan of Ghetto-Mart, but they always seem busier than Target, so I'm not sure of that last sentence. I will say that Wal-Mart's prices for groceries aren't any lower, and are often higher, than Target or King Soopers in our area. Perhaps their non-food items are lower, though. We try to avoid Wal-Marts for the most part. Link to comment Share on other sites More sharing options...
Hum Posted August 10, 2014 Share Posted August 10, 2014 Walmart may not go the way of RadioShack (RSH) any time soon. But Goldman Sachs says that customers are abandoning the big-box pioneer in droves. Good news. :) T3X4S 1 Share Link to comment Share on other sites More sharing options...
DocM Posted August 10, 2014 Share Posted August 10, 2014 In Michigan they ran into a powerhouse regional chain named Meijer. They're larger (up to 200,000+ sq/ft go), have a better selection & quality (especially in produce, which is local or regionally grown), and similar prices. One stop shopping. Area served: Michigan, Indiana, Illinois, Ohio, and Kentucky. Authentic X, Chicane-UK and Skin 3 Share Link to comment Share on other sites More sharing options...
Anibal P Posted August 10, 2014 Share Posted August 10, 2014 Why go to walmart when I can go to Target with better quality, similar prices, clean stores and friendly reps that actually help FrostAM, dead.cell and fusi0n 3 Share Link to comment Share on other sites More sharing options...
DocM Posted August 10, 2014 Share Posted August 10, 2014 In these parts Target is having trouble with Meijer too. Larger selection. They're also aggressive, building 2 massive stores in Detroit where no one else would. Ones already open. Link to comment Share on other sites More sharing options...
Chugworth Posted August 10, 2014 Share Posted August 10, 2014 Good news. :) Of course I have read the horror stories of the working conditions in Amazon warehouses... Link to comment Share on other sites More sharing options...
Dot Matrix Posted August 10, 2014 Share Posted August 10, 2014 In upstate NY, they have to contend with Wegman's (Heaven on Earth). They're no match for local businesses which produce better quality service, produce, and merchandise. DoctorD 1 Share Link to comment Share on other sites More sharing options...
Michael Scrip Posted August 10, 2014 Share Posted August 10, 2014 In upstate NY, they have to contend with Wegman's (Heaven on Earth). They're no match for local businesses which produce better quality service, produce, and merchandise. I love Wegman's! I have family in Ithaca, NY and Wegman's is amazing. I wish we had them down south! Dot Matrix 1 Share Link to comment Share on other sites More sharing options...
crispkreme Posted August 10, 2014 Share Posted August 10, 2014 In Michigan they ran into a powerhouse regional chain named Meijer. They're larger (up to 200,000+ sq/ft go), have a better selection & quality (especially in produce, which is local or regionally grown), and similar prices. One stop shopping. Area served: Michigan, Indiana, Illinois, Ohio, and Kentucky. A Meijer just opened by me a week ago. It has a really nice selection. Link to comment Share on other sites More sharing options...
DoctorD Posted August 10, 2014 Share Posted August 10, 2014 Huh, upstate NY here as well. Anyway Wal-Mart must buy the worst produce in existence, I wanted to snag some corn on the cob for dinner and Walmart sells the worst looking grey colored corn (for .50 each) I have ever seen. Literally I don't believe I have ever looked at corn at this state of decay ever on the ground, let alone for sale at a store. On my way to Wegman's I ended up buying corn from a road side stand for $3 a dozen. Most of their produce is moldy looking when it is actually allergy fresh. Their other items they sell seem to be 3rds that other stores refused to sell, I bought a grinder that didn't fit the grinder wheel. Link to comment Share on other sites More sharing options...
notchinese Posted August 10, 2014 Share Posted August 10, 2014 I will make a prediction right here: Everything that article says is crap. Walmart is fine. (I never shop there) Link to comment Share on other sites More sharing options...
123456789A Posted August 10, 2014 Share Posted August 10, 2014 People disliked Walmart for getting too big and displacing local businesses. It also didn't help that Walmart had less than friendly staff. But why does Amazon get so much praise? They're likely to be a far worse threat than Walmart ever was. Hum 1 Share Link to comment Share on other sites More sharing options...
Mr. Gibs Posted August 10, 2014 Share Posted August 10, 2014 People disliked Walmart for getting too big and displacing local businesses. It also didn't help that Walmart had less than friendly staff. But why does Amazon get so much praise? They're likely to be a far worse threat than Walmart ever was. I don't think the article's author meant to make walmart the devil and amazon the angel. Basically his point is, brick and mortar retailers are struggling as online retailers are becoming larger and larger and that's true. Amazon's customer service has always been top notch and their prices are rarely more than the brick and mortar stores (somtimes the savings are great but usually they're about the same). Then you have the convenience of just one click shopping, I don't have to go into a store, deal with people, listen to the cashier pitch me a credit card. If I know what I want, I can buy it in a minute. As Amazon moves into grocery I suspect things are going get much much worse for them. Most of the time I buy the same things from the store, so if I can get it cheaper (or for the same price), and get it delivered when I want it without having to waste time going to store. Why the hell not? It's not like I'll be getting different products. Then you have wholesale retailers like Costco that are massively eating into WalMart's and Target's business. I have all 3 near me and Costco is always extremely busy while the other two's parking lots are barely ever half full. Link to comment Share on other sites More sharing options...
hagjohn Posted August 10, 2014 Share Posted August 10, 2014 The Waltons are worth over billion dollars but refuse to give their workers enough money to live on. It's disgusting that people who work for a living still have to be on welfare because of their bosses greed. Shiranui 1 Share Link to comment Share on other sites More sharing options...
(Account no longer active) Posted August 10, 2014 Share Posted August 10, 2014 Amazon is the last place where I'd buy groceries. I prefer supporting local organic farmers. Ban Amazon from selling groceries; problem solved. Hum 1 Share Link to comment Share on other sites More sharing options...
BajiRav Posted August 10, 2014 Share Posted August 10, 2014 Why go to walmart when I can go to Target with better quality, similar prices, clean stores and friendly reps that actually helpI turned into a loyal Target customer for last 7+ years (especially because one opened near me ~10min walk). They are like a million times better than the cluttered mess that Walmart is. Although I wouldn't go to either place for groceries as first choice. +E.Worm Jimmy 1 Share Link to comment Share on other sites More sharing options...
DocM Posted August 10, 2014 Share Posted August 10, 2014 In our area Meijer sells locally or regionally produced crops from smaller growers and organics. Their bell and other peppers are terrific, same for Romaine lettuce (my fave) etc. They also have a lot of tropical and Central American fruits & veggies seldom seen outside of ethnic grocers. Even internationally produced canned and dry goods. Want some quality olive oil from about any point on the compass? Gotcha covered. The Kroger groceries are also good, but not near the selection of produce. I think these regional superstores have a better feel for their markets and serve them well, adjusting a bit for being in Michigan vs Kentucky etc. Much better than the national cookie-cutter chains. Link to comment Share on other sites More sharing options...
seta-san Posted August 10, 2014 Share Posted August 10, 2014 Walmart already knows this. it's why they are shifting their business focus to grocery stores. the benefit of Walmart is that they will open stores where no one else will in high theft areas that are labeled "food deserts" Link to comment Share on other sites More sharing options...
DocM Posted August 10, 2014 Share Posted August 10, 2014 Meijer has beat them to it - 2 stores, one already open, in areas of Detroit most other retailers wouldn't touch. Don't get me wrong, it would be great if Wal-Mart did it too as those neighborhoods are badly underserved. But props where props are due. Link to comment Share on other sites More sharing options...
fintechfooty Posted August 10, 2014 Share Posted August 10, 2014 In Canada Wal-Mart is still top stuff. Target was a failure because the prices are equivalent or more than places like Superstore and Save On Foods. At the same time though it's much easier for them in Canada, because competition is at bare minimum. Link to comment Share on other sites More sharing options...
conna Posted August 10, 2014 Share Posted August 10, 2014 I think it is more that it just sucks to go into Walmart. It's always packed full of people that are rude and self centered. If you to skip the people and go late at night you are stuck dodging people pulling pallets full of stuff. The isles are just enough room for two carts passing and be dammed if you get behind a mom with her bratty drugged out kids. Link to comment Share on other sites More sharing options...
+LogicalApex MVC Posted August 10, 2014 MVC Share Posted August 10, 2014 Amazon is the last place where I'd buy groceries. I prefer supporting local organic farmers. Ban Amazon from selling groceries; problem solved. I couldn't care less about organic local farmers... So, I disagree that they should be blocked to force consumers who aren't interested in that option to pay for it. People disliked Walmart for getting too big and displacing local businesses. It also didn't help that Walmart had less than friendly staff. But why does Amazon get so much praise? They're likely to be a far worse threat than Walmart ever was. Mainly because Amazon doesn't yet have the marred image that WalMart has. We shall see how it all shakes up. Link to comment Share on other sites More sharing options...
DocM Posted August 10, 2014 Share Posted August 10, 2014 People of Wal-Mart http://www.peopleofwalmart.com Link to comment Share on other sites More sharing options...
pepsihabbit Posted August 10, 2014 Share Posted August 10, 2014 I switched to target for B&M shopping. If I cant get it online or I just need something today thats where I go. This is exactly how I feel DConnell and +E.Worm Jimmy 2 Share Link to comment Share on other sites More sharing options...
Defcon Posted August 10, 2014 Share Posted August 10, 2014 I suppose its trendy to hate on Walmart, and I'm not syaing they don't have some very shady practices. But not ever place has a competing chain, Walmart does help people save money, and you can't really argue they've caused a huge shift in retail practices. Their workers are underpaid, yes, but do you think they'll find alternative employment in this economy? No. It's like feeling bad for the plight of slave workers in Asia, except we all know for them its a job they depend on. There's also a very disturbing trend towards online and the death of B&M. Most local businesses are dying and can't compete or make the transition. guru and pallipdrsn0 2 Share Link to comment Share on other sites More sharing options...
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