|
CNBC'S MOST SHARED
- Investing in Tech Now
- Apartment Vacancy Rate Hits 22-Year High
- Warren Buffett's Complete Sun Valley CNBC Interview - Transcript and Video
- What You'll See On My NASCAR Documentary Tonight
- Warren Buffett Tells CNBC Consumer Sales Remain "Very, Very Soft"
- Software Giants Rush to Cash In on Carbon-Trading
- Warren Buffett: Economy Needs Another Dose of Viagra
- Preparing for Retirement
- Cramer?s Outrage
- Nikkei on Track to Break 6-Day Losing Streak
- Warren Buffett's Complete Sun Valley CNBC Interview - Transcript and Video
- Warren Buffett Tells CNBC Consumer Sales Remain "Very, Very Soft"
- July 10th in Market History
- Microsoft Plays a Game of Bing Pong
- Options Smell 'Blood' on Infosys
- Christmas in July: Consumers To Out-Scrooge Scrooge
- GM's Second Chance
- Art Cashin: Traders Weigh Obama Policy Changes
- Warren Buffett: Economy Needs Another Dose of Viagra
.ll_medium.jpg)
- China Demands Currency Reform, France Backs Debate
- China Accuses Rio Staff of Bribing Steelmakers
- Assets Are Less Toxic, but Banks Have Other Troubles
- Chevron Says Q2 Hit by US Refining, Weak Dollar
- Stimulus Critics Put Obama, Democrats on Defensive
- Warren Buffett: Consumer Sales Remain 'Very, Very Soft'
- Japan Deflation Deepens as Wholesale Prices Tumble
- Infosys First-Quarter Profit Rises 17%, Beats Estimates
- Google CEO Sees Chrome Netbook News Later This Year
ABOUT THIS BLOG
|
This blog will look at the winners and losers in the retail space. Who has the right strategy to capture consumer dollars? It also will look for trends in consumer spending and how that will impact the economy.
Text Size 
 |
Steven Senne / AP |
Now, a year later, gas prices are even higher and Wal-Mart [WMT
Loading...
()
] management says those expensive costs are bringing customers into its stores.
So I asked CEO Lee Scott where the tipping point in terms of changing consumer behavior.
His answer was an interesting one. Scott said it was undeniable that Wal-Mart's core customers were the first ones impacted by the spike in gasoline prices and they bought less. What changed? Scott said two things: (1) Wal-Mart improved its store experience (cleaned up aisles, added brands to its merchandise and refocused on retail) and (2) the economic stress spread from the bottom up and brought in new customers at "the right" time (i.e. After Wal-Mart improved stores.)
Scott said that this trend doesn't mean that business will fall off when the economy improves. Wal-Mart executives also made it clear that they're interested in expanding health care and green initiatives. In other words, they're trying to anticipate where product trends are headed and carve out a low cost niche to feed developing needs.
Wal-Mart management still thinks that it can tap into the middle income customer base that Target [TGT
Loading...
()
] has dominated for the past few years.
While Wal-Mart's past attempts to draw in those customers via merchandising like clothing (remember Mark Eisen?) have failed, this time around the economy may bring those customers in-store. At least, that's what management is betting on.
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes