How the Discounters Hurt Themselves†

Wal-Mart, Dell, Others See Growth Stall as Rivals Learn How to Beat Them

Advertising Age, December 10, 2007 — If one thing defined the marketing landscape of the 1990s, it was the power of cheap.

Wal-Mart Stores, Southwest Airlines and Dell Computer reshaped their industries with low-cost models that forced competitors to adapt or die. Each of the power discounters thrived heading into the 21st century as their competitors often struggled.

But each is now facing a much tougher battle for growth. Wal-Mart's top line has continued to weaken; both its revenue and comparable-store sales — excluding grocery — grew slower than Macy's last quarter. Southwest is cutting expansion plans and revamping its service model. And Dell returned to founder Michael Dell as CEO to reinvigorate growth.

Wal-Mart Era Wanes Amid Big Shifts in Retail†

Rivals Find Strategies To Defeat Low Prices; World Has Changed

Wall Street Journal, October 3, 2007 — The Wal-Mart Era, the retailer's time of overwhelming business and social influence in America, is drawing to a close.

Using a combination of low prices and relentless expansion, Wal-Mart Stores Inc. emerged from rural Arkansas in the 1970s to reshape the world's largest economy. Its co-founder, Sam Walton, taught Americans to demand ever-lower prices and instructed businesses on running a lean company. His company helped boost America's overall productivity, lowered the inflation rate, and strengthened the buying power for millions of people. Over time, it also accelerated the drive to manufacture products in Asia, drove countless small shops out of business, and sped the decline of Main Street. Those changes are permanent.

Today, though, Wal-Mart's... continue reading

Wal-Mart Brands Its Green Strategy†

Retailer to Unveil Energy-Saving Line Of Own Light Bulbs

Wall Street Journal, September 20, 2007 — One of the biggest U.S. proponents of energy-saving, compact-fluorescent light bulbs will double its bet on the technology as Wal-Mart Stores Inc. unveils its own line of the spiral-shaped bulbs under one of its in-house brands.

Wal-Mart, the world's largest retailer by sales, plans for its Great Value CFL bulbs to cost less than brand-name bulbs, pricing a pack of four bulbs at $7.58, or roughly the price of a three-pack of brand-name bulbs. The Bentonville, Ark., retailer intends to stock its bulbs in 3,000 — or nearly three-quarters — of its U.S. stores this month. It is expected to announce its plan today.

Feeling Trashed on the Web?

How to avoid having your brand message hijacked

BusinessWeek, September 10, 2007 — You've heard the hype about viral, homemade TV ads on YouTube. You've read scathing peer-to-peer product reviews on blogs. And you've seen brands evangelized or slammed by teens and twentysomethings on social-networking sites. On Aug. 8, for example, Wal-Mart Stores launched the Roommate Style Match group on Facebook; 1,000 members joined. The idea was to market dorm furnishings to college-age audiences, but several hundred vehement comments surfaced about Wal-Mart's labor practices, hijacking the brand's message.

Working With the Enemy

Once the youngest president of the Sierra Club, Adam Werbach used to call Wal-Mart toxic. Now the company is his biggest client. Does the path to a greener future run through Bentonville?

Fast Company, September 1, 2007 — “To this day, they won't speak to me," says Adam Werbach. His clients--or rather, his old clients--fired him when word got out last year that he was doing work for Wal-Mart (NYSE:WMT). Of course, many people make compromises to do business with the largest company in the world--accept lower profit margins, absorb relentless performance pressure. But for Werbach, 34, a lifelong environmentalist, the cost of working with Wal-Mart has been personal. Some of his old friends don't speak to him. His former colleagues think he's sold out.

Is Wal-Mart a Brand Killer?

Brandchannel.com, August 20, 2007 — Love it or hate it, there is simply no other retailer quite like Wal-Mart. Read the brandchannel debate about the Wal-Mart brand and you’ll see what we mean.

Disney Hit Proves YouTube Isn't Only Way to Target Teens†

Net Turns to Libraries, Little League to Push 'HSM2'

Advertising Age, August 6, 2007 — Facebook? Forget it.

MySpace? YouTube? Um, like, nuh-uh! Or as Sharpay Evans would say, "Toodles!"

Kids may spend most every waking hour online, but when it came to marketing the sequel to "High School Musical," Disney Channel had little choice but to go decidedly old-school.

At Last, the Reviews Are in: Wal-Mart Wakes Up to the Power of the People†

Retail Giant Makes a Big, if Belated, Push Into the Social Web

Advertising Age, July 23, 2007 — The road to online retail dominance, as Wal-Mart is finally figuring out, is paved with customer content. The company's announcement that it's allowing consumers to review and rate products on its website is a big, if belated, push by the stodgy giant into the social web, following scores of other retailers who have realized the power of crowdsourcing and co-creation. But all Web 2.0 good vibes aside, the real benefit may turn out to be how it affects the performance of the Wal-Mart online store and the goods its sells in search-engine rankings, a crucial factor in the performance of online retailers.

A Whole New Wal-Mart

Forbes, July 12, 2007 — Bentonville, Ark., retail giant Wal-Mart had some good news Thursday. The company said it outpaced expected sales growth with a 2.4% gain over June last year. Google its not, but it is better than the company's recent results.

Skype joins Wal-Mart's Internet marketplace

USA Today, May 13, 2007 — Wal-Mart shoppers can now add one more item to their carts: Skype's Internet phones. Handsets, webcams and other gear from Skype, a pioneer in PC-to-PC calling, will be sold in more than 1,800 Wal-Mart stores starting Monday. The Wal-Mart partnership is the latest sign that Skype has arrived on Main Street, says Don Albert, vice president of Skype's North American operations.