Unsteady at Wal-Mart
This is the first time we've ever gotten the feeling that something might be caught in the wheels of the Wal-Mart juggernaut. Wal-Mart admits that it is getting hit by its "tonier" competitors, like Gap and Bed, Bath & Beyond. The Wal-Response? It's upgrading some of its offerings, thus increasing prices in areas, thus potentially alienating its core shoppers.
We don't particularly care for Wal-Mart, so we're encouraged by this for two reasons: (1) It must be a shaky proposition, kind of like a new roller skater trying to leave one pole for another without falling down. If Wal-Mart doesn't grab the new customers but loses its old ones in the process, it's a fall. (2) It's the first time we've ever heard of Wal-Mart "reacting" to market forces, going on the defensive you might say. Before, it's always expanding--optometry, hair cutting--to crush little guys and without giving up any of their other offerings. Now, they're expanding to fight off bigger competition and, to do so, they're surrendering a chunk of their existing business.
