Wal-Mart
Wal-Mart’s Strengths in Groceries Compared to Competitors
Wal-Mart has an tremendous history of innovating low cost distribution systems. Wal-Mart’s operational efficiencies made the food side itself profitable from the beginning of the supercenter concept. As a result, the supercenters are typically larger, more focused on food, and able to have more side businesses than their competitors. Wal-Mart’s extension to groceries seemed very logical and offers customers a chance for one-stop shopping.
Given the company’s reputation for low-prices, customers can be confident they will also be getting the best prices on food. The success of the grocery side is making the switch to supercenters very easy for Wal-Mart. The company is very enthusiastic to switch to ever larger supercenters. This attitude is reflected in Wal-Mart’s Vice Chairman John Menzer when he said “We would love to wave a magic wand and [make] every one of our discount stores a supercenter.”......
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