| If you follow the news relating to Walmart you might | | | | But if you are there at midnight, you are there for a |
| have picked up a steady theme recently. These are | | | | reason." |
| a few of the headlines from the last week regarding | | | | Couple these statements with Walmart's renewed |
| Walmart's strategy. | | | | focus on everyday low prices instead of high/low |
| "Wal-Mart's ‘new' strategy: Everyday low prices" | | | | deals along with recent statements of expecting a |
| "Walmart expands in store medical clinics" | | | | "practical Christmas" shopping season, and the |
| "Wal-Mart expects holiday shoppers to be | | | | supplier or manufacturer must ask themselves if they |
| practical" | | | | are on the same page as their largest customer. |
| After reading these stories one finds a recurring | | | | A common phrase being passed around in the media |
| theme. Walmart has read the writing on the wall. | | | | and even in conversations with colleagues runs |
| Regardless of the report put out by The National | | | | something like this, "When the economy picks up |
| Bureau of Economic Research, a government agency, | | | | we'll…" |
| stating that the recession ended in June of 2009, | | | | The mindset seems to be to wait for the worst to |
| Walmart knows that their core shopper is struggling | | | | pass and we'll get back to a time of better |
| like never before in this generation. | | | | business. But is this the right strategy? |
| Bill Simon, CEO of Walmart U.S., recently made the | | | | I'm certainly not saying here that the economy will |
| following statements at a Goldman Sachs conference | | | | not eventually pick back up. Economies always do |
| about the shopping patterns of Walmart's core | | | | recover at some point. The question is, when? |
| shopper in the U.S. | | | | How long will this protracted recession (or decline if |
| "The paycheck cycle we've talked about before | | | | you prefer) continue and how should suppliers plan |
| remains extreme. It is our responsibility to figure out | | | | their business to thrive in the midst of the American |
| how to sell in that environment, adjusting pack sizes, | | | | consumer having substantially less money to spend |
| large pack at sizes the beginning of the month, small | | | | each month than in past years? |
| pack sizes at the end of the month. And to figure | | | | Bill Simon offered a few examples in his statement |
| out how to deal with what is an ever-increasing | | | | shown above. Could the "bonus pack" be reduced |
| amount of transactions being paid for with | | | | to the "tiny pack" in order to help consumers buy all |
| government assistance. | | | | of their necessities, albeit, in lesser quantities? |
| "And you need not go further than one of our stores | | | | Also consider the second recent article listed at the |
| on midnight at the end of the month. And it's real | | | | top of this piece. Walmart is the largest retailer in |
| interesting to watch, about 11 p.m., customers start | | | | the country and is most aggressively pursuing |
| to come in and shop, fill their grocery basket with | | | | healthcare units in their stores. Why is this |
| basic items, baby formula, milk, bread, eggs, and | | | | necessary and why are people using this service if |
| continue to shop and mill about the store until | | | | not for a cost savings? Regardless of any |
| midnight, when electronic -- government electronic | | | | attempted healthcare reform, the cost of healthcare |
| benefits cards get activated and then the checkout | | | | continues to rise and Walmart is positioning itself to |
| starts and occurs. And our sales for those first few | | | | be a strong player in the basic care arena. |
| hours on the first of the month are substantially and | | | | Walmart is taking the necessary steps to be the |
| significantly higher. | | | | retailer of choice during these difficult economic |
| "And if you really think about it, the only reason | | | | times, but what are the manufactures doing to be |
| somebody gets out in the middle of the night and | | | | the product or brand of choice during these times? |
| buys baby formula is that they need it, and they've | | | | If the strategy is to wait for the economy to |
| been waiting for it. Otherwise, we are open 24 hours | | | | improve, you might just wait yourself off of |
| -- come at 5 a.m., come at 7 a.m., come at 10 a.m. | | | | Walmart's shelves. |