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THE NEW AND IMPROVED WALMART - Going
for the Knockout
Punch?
WALMART got its Trust
and Price mojo back just in time to take advantage
of the biggest economic crisis and the most
significant consumer shift in the past 30 years to
become even more dominant. But they aren't
resting on their old strengths. Today they seem to
be morphing into an even larger and more different
colossus at a time when many retailers continue to
struggle.
And this time it
appears Walmart is not only morphing again like
they did in the '80s with Sams, the '90s with
SuperCenters and the '00s with
International, but they are going for the
knockout punch.
In addition to
actively going after large targeted retail
segments like electronics, food, toys,
crafts, books and education related categories,
financial services and health-and wellness, they
are also adding services well beyond their most
aggressive model for doing
business.
Walmart appears
to be expanding on the web attacking both Amazon
and Ebay's realms, beginning to expand their small
store concepts and opening hundreds of health care
clinics.
They are even actively
helping consumers make green choices. Since
a huge number of options have some shoppers
questioning the green label, Walmart is
developinig a sustainability index, and an iPhone
application to help guide consumers to best buys
in stores with Twittering capabilities and
beyond.
"Dominate, Don't Dabble" seems to be their
individual department mantra.
And why not? They have worked hard
to get back their "Trust" strength, a
strength which very few retailers have. And
it is much easier for those few Trusted
Retailers to expand into new goods and services
than it is for other more
typical retailers.
Walmart is
also one of the very few retailers that has
successfully developed major new concepts outside
of their original model (the Discount Store)
- and even outside of the retailing model
(In-store TV, etc.)
Oh, and recently
they have announced they are lowering prices,
again. It just doesn't seem fair. It
makes you wonder when the government will take
them over.
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Around the World of Retailing: El Corte
Ingles...Dominating the Best of Everything You
Really Need -Barcelona, Spain with Chris Ohlinger,
CEO
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El Corte Ingles: Dominating The Best
Of Everything You Really Need ... Barcelona,
Spain.
In Barcelona at Playa Catalunya, we found a
good example of the single most dominant
merchant in any country we visited simply because
it offered the best of everything you really
need. The store was huge with an absolutely
"castle-like" exterior. But it "shopped small" -
or as small as a 10 story, 400,000+ square foot
store can.
 El Corte Ingles
could be mistaken for a U.S. department store
except for four major differences:
1) Category Dominance
2) Service Dominance
3) Emotional Appeals
4)
Skillful Product & Consumer Target Market
Selection: focusing on products that
large groups of shoppers need, want & will
regularly and proudly
wear.
1. Department Dominance
El
Corte Inglés has succeeded as the one stop
shopping leader in Spain which dominates its
chosen categories. And El Corte Ingles
has chosen a whole lot of
major categories. I was told on the streets
of Barcelona that El Corte Inglés "sells
everything from diamonds to elephants." I
missed the elephants but I did see all of
their other departments.
It offers 5
floors of clothing for men, women &
children. But clothing is not their only
area of domination. They dominate home electronics
including computers & peripherals (plus
hardware, software, support, repair, internet, and
other related areas), TV, video, mobile phones,
video games & CD's. Other areas of
dominance are soft home including bed & table
linens, towels, mattresses, rugs, curtains;
furniture & decorations including lamps,
pictures, decorations; household goods including
electrical appliances, kitchenware, silverware,
handicrafts, pottery, glassware, stainless steel
& plastics; fashion accessories including
perfumes & cosmetics, watches, handbags,
leather goods, hosiery, scarves & umbrellas
& finally
groceries.
They are
even a major factor in toys, fabrics, musical
instruments & jewelry, with exclusive
arrangements with top level artists &
designers - again focusing on products that
"normal" people would wear and can afford.
Normal people like you and me. Well, at
least like me.
In fact, this
El Corte offered a wonderful full service,
sit-down restaurant on the top floor
overlooking what may be the most beautiful plaza
in Barcelona. - filled with artwork, fountains and
local activities.
You cannot ask
about a single major consumer goods category
without having El Corte Inglés come up as one of
the top two relevant shopping alternative choices
in every one. In an era in the U.S. when
consumers don't know what categories most
retailers offer, people in Spain seem to assume
that El Corte Ingles carries "everything I
want or
need."
2. Service
Dominance
In addition to its product
category dominance, El Corte Ingles also offers
extra services including vehicle maintenance,
beauty salons & barber services,
theatre/sports/ entertainment ticket sales, travel
agency, photo processing, pharmacy, opticians,
tobacconist & floral shops.
EXTRA SERVICES: TRANSLATIONS
 And their extensive
consumer-friendly offerings also included a number
of value added services including phone "hot line"
question site, the convenience of shopping at any
department without the nuisance of having to carry
bags or boxes around the store & being able to
utilize a central checkout, special packaging,
phone shopping & delivery, and home
delivery on all purchases exceeding $150.
They even offer a "translator" service for people
from the U.S., England (if they speak U.S.),
Germany, France & Italy. I'm
disappointed to say we will soon be able to use
this once we officially endorse multi-lingual
non-communication in the
US.
3. Emotional
Appeals
But product & service
dominance is not only what El Corte is all
about. It also creates a special shopping
experience. I
visited their stores before
Thanksgiving . El Corte Ingles offered
not just decorations but literally provided a
magically lit village with ice skating, Santa's
huts & children's rides, etc. outside of their
Barcelona store. Event merchandising is also
prominent in their stores. In fact, the entire top
floor of their stores is reserved for special
events, celebrations & seasonal
merchandising.
FESTIVAL
ATMOSPHERE
 4. Focus: Products That
Large Groups Of Shoppers Need, Want & Will
Proudly Wear
The final major
difference between U.S. department stores & El
Corte Ingles is that they specialize in products
that a huge group of people want, need & will
proudly wear.
El Corte Inglés
does not pretend to go after either the extreme
upper class customer of Cartier or
Prada. El Corte Inglés offers fashionable
& quality products to a huge target market
that wants, needs & will wear or use them: the
currently affluent & about-to-be affluent
family. In an expanding economy (which is
clearly a reality in Spain), this target is the
"sweet spot" that many retailers crave yet so
often miss.
Potential
Problems?
From a strategic
standpoint, I can certainly see potential
problems for El Corte Ingles caused by being
spread too thin as new products, services &
departments continue to
proliferate. But today, they don't
dabble, they
dominate.
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| Huge Shift in US Political
Landscape & Good News For Retailers:
NEW JERSEY, (Christie),
VIRGINIA (McDonnell),...NORTH BEND, OHIO ( Bill Welch,
SIRS President, wins in a landslide in his
own mind by 6 votes) |
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CAN YOU SMELL THE WINDS OF CHANGE?
In what
may be a preview of how the political winds
are shifting in the US and as a reminder
that you may want to stay downwind of this shift,
Bill Welch (President of SIRS), who ran on a
platform of "No New Ideas" and "No New Sexes" (we
think he actually meant "No New
Taxis" Bill soundly defeated his
closest challenger ... by 14 votes.
Not believing the results himself, Bill
demanded a recount - until his
brother reminded him that he has an extremely
large family that resembles, sizewise, a third
world tribe - some of whom may have even voted for
him. Also, they could not find anyone in his
community who could count into triple
digits.
Challenges to this important and
controversial election are not stemming from the
suspicion that Bill actually received 255
votes but that there are only 175 qualified voters
in his community of North Bend Ohio.
We firmly stand behind Bill in this challenge
and sincerely believe he is by far the most
qualified of all the candidates. Sad,
isn't it?
Regardless, a hearty Congratulations to Bill
!!!
Official results below...
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Smilers...thoughts to make you smile from
SIRS Back to
Top
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 "If all the nations in the
world are in the debt, where did all the money
go?"
Steven
Wright
A little boy was overheard praying:
"Lord, if you can't make me a
better boy, don't worry about it. I'm
having a real good time like I
am."
WORLD SERIES TIME: A
LITTLE KNOWN BASEBALL FACT
The first testicular
guard (Cup) was used in baseball in 1874 and the
first helmet was used in 1934. It took
60 years for men to realize that the brain is also
important.
Happy
Thanksgiving
May You Have a Big Bird
Too!!
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Inspirations...thoughts to inspire you from
SIRS Back to
Top
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 THINK ABOUT IT: "There are
10 types of people in the world: those who
understand binary, and those who
don't."
"Tolerance is the virtue of
men who no longer believe in anything."
"If the only tool you have is a hammer, you
tend to see every problem as a nail."
--Abraham Maslow, US
psychologist
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| For more information on
these articles, please email sjobedye@sirsinc.com |
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CHRISTMAS PREVIEW: Key
questions needing responses to today's
changed shoppers
(ANSWERS IN DECEMBER
ISSUE)
1) Are
you aware of how shoppers are trying to stretch
their dollars? How are you making it easier
for them to do this better than
competition?
2) How have you
responded to the top consumer shifts &
trends in their shopping habits (before, during
and after their actual in-store experience) &
their purchase patterns and the where to shop
drivers you can influence?
3) Are you using
the internet to make it easier for shoppers to
visit your stores at the best times & select
the best deals within your stores in the least
amount of time?
4) Are you doing
all you can to help the Good Health & Well
Being of your shoppers and their families?
5) Are you familiar
with changes in your shoppers' lives that impact
what they buy in your stores, when they buy it
& what related goods and services they
are buying outside of your traditional
channels?
6) Outside of
Price, are you giving your shoppers a true value
for shopping at your
stores?
7) Are you using
new ways to communicate & listen to your
potential customers?
8) In addition to
helpiing them save money, are you helping them
shop smarter & do a beter job of shopping your
stores for their
benefit?
9)
Are you using the most up to date / efficient POS
& Panel techniques to motivate your
shoppers & modify their
behavior?
10) Are you
providing any different services to your shoppers
since the recession changed their shopping
behavior?
ANSWERS IN CHRISTMAS NEWSLETTER
NEXT
MONTH
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