Sears/K-Mart Merger

[vibes]

I consider it to be neither suicide nor cannibalism.  If creating efficiency requires a reduction in the workforce, then the workforce is reallocated elsewhere.

(...)

But where? As we get more and more efficient, there's less need for the type of production jobs that many folks rely upon. Face it: not everyone has the natural ablilties to survive in anything but a blue collar type job. Not everyone has the abilities to find a place in the high-tech sectors of the economy or as doctors, lawyers, indian chiefs...

Tens of thousands of manufacturing/production jobs have disappeared in the last century, and yet the economy has grown and thrived. So, where did all those jobs go? Somewhere else, of course.

I agree that not everyone is cut out to be a doctor or a lawyer or whatever, but at the same time, I don't see the need for blue collar jobs ever going away. Those jobs just become something different.

[wesbed]

I  had no idea that Walmart sold meat.

This is a good thing to not know (or experience). Believe me.

[JSngry]

I wouldn't worry too much about Wal-Mart. No company is capable of being all things to all people. Wal-Mart's "stack it high, let it fly" model only appeals to certain people. Everyone knows that if you want service, you don't go to Wal-Mart. Wal-Mart also has a very "cheap" image which will be extremely difficult for it to shed, if it ever tries to...so, the segment of the population that needs style and name brands won't go there. You get the point. Like I said before, you can't out-Wal-Mart Wal-Mart, but that doesn't mean there aren't other things you can do.

This is all operating on the premise that there will always be enough people with enough disposable income to make the choices you describe. Right now, the trend is not in that direction, and as Wal-Mart continues to squeeze suppliers and competition, jobs continue to be lost. And as consumers (seemingly) mindlessly go for the "everyday low price" without any consideration of what the cost of that price is going to end up being, how do you stop the cycle?

I live in a pretty affluent suburb, and I can tell you - the Wal-Mart "image problem" is a non-factor here. They gussy up the buildings, put a little extra effort into things like store cleanliness and such, and voila, they're on that Wal-Mart roll. The SUVs are as plentiful in the parking lot as the pickemups and the rustmobiles. Moreso in fact.

The only solution I can see is to not shop at Wal-Mart if you don't have to. Lots of people don't have to, but they're doing it anyway. So whatcha' gonna do?

[vibes]

What surprised me was reading very recently, in passing, something that said that in five years, or maybe 10, Walmart won't "buy" anything that it is stocking. There'll be no inventory. Everything will be "owned" by the distributors/producers until the moment its pulled from the shelf and run through the check-out scanner and paid for. The suppliers say this isn't what they want, but its what Walmart is heading towards, and what can they do?

This is nothing new, and many, many businesses work this way. There are two main ways this happens:

1. Consignment - the retailer does not pay the supplier for the goods until they are actually sold.

2. Extended dating terms - the retailer does not pay the supplier for the goods until a period of time (anywhere from 30 to 120 days or more) have passed. If you can sell the goods in that amount of time, then technically, you never "owned" them.

So, it's not that there won't be any inventory, it's just that the inventory will be accounted for differently on Wal-Mart's books. I assume, based on Dan's comments, that Wal-Mart is pushing all of its suppliers to go to consignment. This actually forces vendors to be more efficient with production schedules, allocation of inventory, etc. I try to get most of my suppliers to go to consignment as well. It helps me do more with the inventory because of the way it's accounted for, and it tends to make the supplier care a lot more about where the inventory is, how it's priced, how it performs, and how well stores are stocked.

[SEK]

The only solution I can see is to not shop at Wal-Mart if you don't have to.

That's the policy in our household for the reasons you've specified, Jim.

It's a pity that some of this era's of pie-in-the-sky idealists place their faith in such a set up.

It was better when the Soviet Union was the big evil, and competition in most things was at least given lip service and, in many areas, substance.

Within the past month, we bought a new clothes dryer from the local Sears. I'm suspicious of the merger, mainly because I don't like K-Mart much more than Wal-Mart.

[Chuck Nessa]

Sears brings Craftsman and Kenmore to the table. Very fine reps and better than OK products. K-Mart has the Martha line. Do not laugh. The food related products like pots and pans are absolutely first rate. Some smart cookie could take advantage of this and become a hardware monster.

We buy yogurt from Wally. They are the only local source for Blue Bunny "sugar free" and between the the two of us we eat about 20 a week. That is it!

The us (couldn't push down the cap key) is moving away from much I love, but might become a country I admire. If we become "crippled" by our greed, we might be fine.

[BruceH]

What I can't believe is that it's K-Mart that's buying Sears, not the other way 'round. Just a little while ago K-Mart was under Chapter 11 protection. Now they're buying Sears? I'll never understand big bidnizz.

[Chuck Nessa]

What I can't believe is that it's K-Mart that's buying Sears, not the other way 'round. Just a little while ago K-Mart was under Chapter 11 protection. Now they're buying Sears? I'll never understand big bidnizz.

Same guy owns big chunks of both companies. It is an inside deal which can defy logic and impose "smack". We just have to sit by and watch.

[Jim Alfredson]

I went to Wal-Mart twice. First time I had to get a DV tape within a short period of time and they were closest. Second my wife and I went there looking for something (I can't remember what) and left within a few minutes without buying anything. We also vowed never again.

Sears is actually a good store. I own a lot of Craftsman tools and Sears is the first place I go if I need a tool. They have good clothes, too. Both my wife and I buy clothes there.

K-Mart. I think I've been there once with my grandparents when I was really little. That's about it.

I hope it helps Sears out because I do like that store a lot.

[GregK]

We buy yogurt from Wally. They are the only local source for Blue Bunny "sugar free" and between the the two of us we eat about 20 a week. That is it!

I like the Blue Bunny French Vanilla-I get it at Meijer

[Chuck Nessa]

We buy yogurt from Wally. They are the only local source for Blue Bunny "sugar free" and between the the two of us we eat about 20 a week. That is it!

I like the Blue Bunny French Vanilla-I get it at Meijer

Isn't that ice cream?

[GregK]

We buy yogurt from Wally. They are the only local source for Blue Bunny "sugar free" and between the the two of us we eat about 20 a week. That is it!

I like the Blue Bunny French Vanilla-I get it at Meijer

Isn't that ice cream?

oh yeah, maybe you're right. I meant Vanilla Creme. I also enjoy the Raspberry flavor. I'm not sure what Splenda will do to my liver though

[Late]

I watched the recent Wal-Mart documentary on Frontline with my dad, whose never been to a Wal-Mart. Afterward, he had only one comment, which went something along the lines of " ... and Henry Ford actually decided to pay his employees more so that they could afford his cars." Isn't this, in some respect, also a form of efficiency?

[SEK]

Isn't this, in some respect, also a form of efficiency?

Old school, September 10th mindset, apparently.

I saw that Frontline too, one of their best.

[Tjazz]

I watched the recent Wal-Mart documentary on Frontline with my dad, whose never been to a Wal-Mart. Afterward, he had only one comment, which went something along the lines of " ... and Henry Ford actually decided to pay his employees more so that they could afford his cars." Isn't this, in some respect, also a form of efficiency?

With all due respect, if someone has never been to a Wal-Mart....

And Wal-Mart is one of the biggest retailers in the USA.

That might be like someone who doesn't have a computer talking about Microsoft.

[catesta]

The more I find out about Wal-Mart, the more I realise that my "Wal-Mart is Evil" slogan of the last decade or so isn't just sloganeering. It's the TRUTH! So I hope that something good in terms of stopping the beast's devouring of the soul of America comes of this merger.

Of course you are right about Wal-Mart.

I hope this is a good thing.

For me anything that assists in pushing a stick up further up Wal-Mart's ass is a good thing.

We'll see.

[Jim Alfredson]

I watched the recent Wal-Mart documentary on Frontline with my dad, whose never been to a Wal-Mart. Afterward, he had only one comment, which went something along the lines of " ... and Henry Ford actually decided to pay his employees more so that they could afford his cars." Isn't this, in some respect, also a form of efficiency?

With all due respect, if someone has never been to a Wal-Mart....

And Wal-Mart is one of the biggest retailers in the USA.

That might be like someone who doesn't have a computer talking about Microsoft.

So since you don't own a recording studio you can't talk about the sound quality of CDs, right?

[minew]

I watched the recent Wal-Mart documentary on Frontline with my dad, whose never been to a Wal-Mart. Afterward, he had only one comment, which went something along the lines of " ... and Henry Ford actually decided to pay his employees more so that they could afford his cars." Isn't this, in some respect, also a form of efficiency?

Saw the Frontline, too, and was struck by how much of the US consumer goods market that China already owns. And it's getting bigger. We are financing the explosive growth of the Chinese economy. Are we sure we want to do this? Japan turned out to be a paper tiger but there's nothing paper about the dragon. Is Wal-Mart the real Manchurian Candidate?

[BruceH]

I've been to Wal-Mart 3 or 4 times, always when visiting New England. It struck me as K-Mart on steroids. (And watch out for that roid-rage.)

[spinlps]

Does Sears still own / operate Land's End? I never owned Land's End merch until Sears began carrying it. At that point, we've purchased the occaisional LE piece, but usually direct through the web / catalog and not at Sears. I do purchase the occaisional toolset and baby wear / supplies there.

I have a Wal-mart about a mile from my house but almost always choose to shop at a Target 5 miles further. Target's product line and house brands seem to be a better quality than Wal-Mart's. Of course, they're all probably made in the same factory in China.

I don't necessarily agree that Wal-mart has captured the high-end suburban market. I think they've made in roads, but I would credit Sam's with taking that market for them then WM. What market KM had in the St. Louis area has definitely been taken by WM and Target. WM seems a horizontal move while Target for those who have "graduated" from the KM/WM years.

As far as out WM-ing WM, I think Target has shown the way with the "value added" model. Their items are rougly the same price, perhaps a tad more expensive, but have a higher cache given the designers and more "upscale" lines they offer. I can't recall the name of the toy store, but I read about a small chain that was competing well with the largest toy seller in the USA. They're "value added" exercise wasn't to price cut with WM, but to offer more unique customer service options: call your toy order ahead, they'll deliver your bagged / boxed/ wrapped purchases to your car while you wait in the lot... I'm sure busy mom's or shopping phobic dad's appreciate it.

[danasgoodstuff]

This reminds me of when Packard bought Studebaker (not the other way 'round) and then found out just how sick Studebaker really was (except Packard was the high end of that deal). Not sure which American auto independent that would make Monkey Wards (to stretch an already iffy metaphor). I don't shop at Wallmart either (been in one or two). Target is my lowend all purpose retailer of choice, sears once in a while, all the K Marts I've been in recently just felt poor and chaotic. Wal Mart does understand their market, great location choices and playing to their psychological needs. I'll even go to Pennys (usually small town ones that feel like you're in a time warp) before WM, but that's just me. Has anyone studied the correlation of retailer v. political preferences?

[Tjazz]

I watched the recent Wal-Mart documentary on Frontline with my dad, whose never been to a Wal-Mart. Afterward, he had only one comment, which went something along the lines of " ... and Henry Ford actually decided to pay his employees more so that they could afford his cars." Isn't this, in some respect, also a form of efficiency?

With all due respect, if someone has never been to a Wal-Mart....

And Wal-Mart is one of the biggest retailers in the USA.

That might be like someone who doesn't have a computer talking about Microsoft.

So since you don't own a recording studio you can't talk about the sound quality of CDs, right?

I think the saying would be:

If you don't listen to CDs or buy them, it would difficult to talk about Sony/Columbia Corp. (or any other dominate Music company)

Or:

If you don't own a recording studio, it might be hard to comment about a mixing board from the dominate manufacturer.

Or:

If you don't listen to music, it might be difficuft to talk about the sound quality of CDs or LPs.

Edited November 24, 2004 by Tjazz

[Guest Chaney]

Sheesh! While I've never been in a Walmart, I'm surprised to learn that it's apparently quite the singular experience.

B-)

[Ed S]

Been to Wal-Mart once. Hated it x 100 I'd rather pay double than put up with that place. Total chaos - disorganized, aisles blocked with displays, merchandise disorganized.

Hate K-mart. Similar chaotic ambience

Usually go to Target for my department store needs. Clean, well organized and stocked. Roomy aisles and calm ambience.

Buy tools and appliances from Sears.

[BruceH]

Same guy owns big chunks of both companies.

...And why can't he adopt me???