Author Topic: WMT - Walmart Inc  (Read 55526 times)

ccplz

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Re: WMT - Walmart Inc
« Reply #90 on: November 01, 2015, 04:44:29 PM »
That was obviously a typo.

It's fixed now.

« Last Edit: November 01, 2015, 04:50:33 PM by ccplz »


rkbabang

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Re: WMT - Walmart Inc
« Reply #91 on: November 02, 2015, 06:08:33 AM »
Last year, 56% of Walmart's revenues came from groceries. Do people buy groceries online? Is it even possible?

Do people really buy groceries from Walmart?   Go into your nearest Walmart and look at the groceries, really look at them, or even try to do your shopping there.  Unless your local Walmart is VERY different from mine, what you will see is disgusting.  The meats are gross and the produce is worse.  I ran into a Walmart on the way home once to buy a case of Corona and some limes and walked out without any limes, because I wasn't even going to put those disgusting things in my beer and certainly wasn't going to serve them to guests.  I had to drive out of my way to a grocery store.

I know that they serve the lower income demographic, but that is just one of the many trends running against them as the world gets wealthier.   Their products are sub-par (a generous understatement), their online service is terrible beyond compare, the employees!!... (it appears that they must hire people from local homeless shelters and/or insane asylums), the stores are not appealing or well kept, and their groceries (meats/produce) are inedible.  Sure all this is all fixable, but will they fix it?

tng

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Re: WMT - Walmart Inc
« Reply #92 on: November 02, 2015, 07:09:47 AM »
Last year, 56% of Walmart's revenues came from groceries. Do people buy groceries online? Is it even possible?

Do people really buy groceries from Walmart?   Go into your nearest Walmart and look at the groceries, really look at them, or even try to do your shopping there.  Unless your local Walmart is VERY different from mine, what you will see is disgusting.  The meats are gross and the produce is worse.  I ran into a Walmart on the way home once to buy a case of Corona and some limes and walked out without any limes, because I wasn't even going to put those disgusting things in my beer and certainly wasn't going to serve them to guests.  I had to drive out of my way to a grocery store.

I know that they serve the lower income demographic, but that is just one of the many trends running against them as the world gets wealthier.   Their products are sub-par (a generous understatement), their online service is terrible beyond compare, the employees!!... (it appears that they must hire people from local homeless shelters and/or insane asylums), the stores are not appealing or well kept, and their groceries (meats/produce) are inedible.  Sure all this is all fixable, but will they fix it?

I think there are certain areas where Walmart is pretty much the only grocery store. As with all grocery stores, they need to have a ton of customers or sales buying up their inventory in order for their stuff to be fresh. If you are in a more populated area where there are multiple competing grocery stores/chains, most people won't go to Walmart for their groceries because that is not the first store that comes to mind when they need food. I live in the northeast and it doesn't seem like many people buy groceries at Walmart, but some of the Walmarts still have the grocery section.

rkbabang

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Re: WMT - Walmart Inc
« Reply #93 on: November 02, 2015, 08:06:10 AM »
Last year, 56% of Walmart's revenues came from groceries. Do people buy groceries online? Is it even possible?

Do people really buy groceries from Walmart?   Go into your nearest Walmart and look at the groceries, really look at them, or even try to do your shopping there.  Unless your local Walmart is VERY different from mine, what you will see is disgusting.  The meats are gross and the produce is worse.  I ran into a Walmart on the way home once to buy a case of Corona and some limes and walked out without any limes, because I wasn't even going to put those disgusting things in my beer and certainly wasn't going to serve them to guests.  I had to drive out of my way to a grocery store.

I know that they serve the lower income demographic, but that is just one of the many trends running against them as the world gets wealthier.   Their products are sub-par (a generous understatement), their online service is terrible beyond compare, the employees!!... (it appears that they must hire people from local homeless shelters and/or insane asylums), the stores are not appealing or well kept, and their groceries (meats/produce) are inedible.  Sure all this is all fixable, but will they fix it?

I think there are certain areas where Walmart is pretty much the only grocery store. As with all grocery stores, they need to have a ton of customers or sales buying up their inventory in order for their stuff to be fresh. If you are in a more populated area where there are multiple competing grocery stores/chains, most people won't go to Walmart for their groceries because that is not the first store that comes to mind when they need food. I live in the northeast and it doesn't seem like many people buy groceries at Walmart, but some of the Walmarts still have the grocery section.

Good points.  I live in the North East as well and there are so many better places to buy groceries, even in the lower income areas that it is hard to imagine buying food there.  But maybe things are different in rural areas.  Is there a breakdown somewhere of rural sales compared to urban/suburban sales?   This seems like another trend working against Walmart (and in Amazon's favor) as population grows, suburbia spreads, and urban areas become more dense.

FCharlie

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Re: WMT - Walmart Inc
« Reply #94 on: November 02, 2015, 10:30:11 AM »
Last year, 56% of Walmart's revenues came from groceries. Do people buy groceries online? Is it even possible?

Do people really buy groceries from Walmart?   Go into your nearest Walmart and look at the groceries, really look at them, or even try to do your shopping there.  Unless your local Walmart is VERY different from mine, what you will see is disgusting.  The meats are gross and the produce is worse.  I ran into a Walmart on the way home once to buy a case of Corona and some limes and walked out without any limes, because I wasn't even going to put those disgusting things in my beer and certainly wasn't going to serve them to guests.  I had to drive out of my way to a grocery store.

I know that they serve the lower income demographic, but that is just one of the many trends running against them as the world gets wealthier.   Their products are sub-par (a generous understatement), their online service is terrible beyond compare, the employees!!... (it appears that they must hire people from local homeless shelters and/or insane asylums), the stores are not appealing or well kept, and their groceries (meats/produce) are inedible.  Sure all this is all fixable, but will they fix it?


No disrespect intended, but if 56% of their half trillion of sales are from selling groceries, then I'd say that people really do in fact buy their groceries from Wal Mart.    Your description of the produce dept. is nothing like the Wal Mart nearest me. and regarding the world getting wealthier, I can't recall any period in history where there weren't far more poor people than wealthy people.

rkbabang

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Re: WMT - Walmart Inc
« Reply #95 on: November 02, 2015, 10:46:54 AM »
Last year, 56% of Walmart's revenues came from groceries. Do people buy groceries online? Is it even possible?

Do people really buy groceries from Walmart?   Go into your nearest Walmart and look at the groceries, really look at them, or even try to do your shopping there.  Unless your local Walmart is VERY different from mine, what you will see is disgusting.  The meats are gross and the produce is worse.  I ran into a Walmart on the way home once to buy a case of Corona and some limes and walked out without any limes, because I wasn't even going to put those disgusting things in my beer and certainly wasn't going to serve them to guests.  I had to drive out of my way to a grocery store.

I know that they serve the lower income demographic, but that is just one of the many trends running against them as the world gets wealthier.   Their products are sub-par (a generous understatement), their online service is terrible beyond compare, the employees!!... (it appears that they must hire people from local homeless shelters and/or insane asylums), the stores are not appealing or well kept, and their groceries (meats/produce) are inedible.  Sure all this is all fixable, but will they fix it?


No disrespect intended, but if 56% of their half trillion of sales are from selling groceries, then I'd say that people really do in fact buy their groceries from Wal Mart.    Your description of the produce dept. is nothing like the Wal Mart nearest me. and regarding the world getting wealthier, I can't recall any period in history where there weren't far more poor people than wealthy people.

That has always been true and still will be true world wide for a long time to come, but in the US it already isn't true and in many other 1st world countries it won't be true for very long.  There are very few poor people in the US (compared with much of the world).  You can certainly say that less than half the US population is poor.   And if I'm looking at the numbers correctly Walmart's non-US sales are only about 28% of its total sales.
« Last Edit: November 02, 2015, 12:21:55 PM by rkbabang »

rpadebet

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Re: WMT - Walmart Inc
« Reply #96 on: November 02, 2015, 10:58:31 AM »

Walmart has not really focused on Online so far and their current efforts so far have been subpar.

My question is, what competitive advantage does Amazon have when it builds its distribution centers - automated with robots as they might be, why would Walmart not be able to build them if it deems them necessary? Is there anything that Amazon does in these distribution centers that Walmart would not be able to copy? They certainly can afford it and the Walton family with 50% stake would certainly be understanding if short term results need to take a back seat to protect long term viability.

Vinod

Vinod,

Here is something to think about,
WMT's distribution centers are/were their competitive advantage with respect to other retailers. The era they have grown in and the model they followed caused them to strategically locate their distribution centers such that they could most efficiently service their customers (the big box retail stores around them). It was perfect as long as customers went to the store to shop.

Enter Amzn - their distribution centers (called fulfillment centers) were built and located strategically in this era. They located them such that they could efficiently service their customers (not retail stores but direct customers).

The location of distribution centers is key in retail as it influences what inventory you carry, how much you carry and by when you can restock if necessary. Your suppliers are plugged into these systems and for both WMT and AMZN it works perfectly given their model.

Now if WMT has to replicate AMZN locations, it would clearly be very expensive. Not only that, it would be disruptive to their existing business model with suppliers- it is a classic problem incumbents face in business. That is also why you see an effort from WMT to use their retail locations as part distribution centers for their online model.(pick up from store model)

They will have to do something like MSFT did - scrap the old unwieldy internet explorer and build a totally new browser for the new gen. This is difficult to do, but certainly possible. It would take a lot of investment and patience from investors.

My difficulty with WMT is - do you think the current management is not entrenched enough to overhaul the internet strategy? I would think you need new blood to come in to make such big changes (again like MSFT)
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Parsad

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Re: WMT - Walmart Inc
« Reply #97 on: November 02, 2015, 01:01:03 PM »
Last year, 56% of Walmart's revenues came from groceries. Do people buy groceries online? Is it even possible?

Do people really buy groceries from Walmart?   Go into your nearest Walmart and look at the groceries, really look at them, or even try to do your shopping there.  Unless your local Walmart is VERY different from mine, what you will see is disgusting.  The meats are gross and the produce is worse.  I ran into a Walmart on the way home once to buy a case of Corona and some limes and walked out without any limes, because I wasn't even going to put those disgusting things in my beer and certainly wasn't going to serve them to guests.  I had to drive out of my way to a grocery store.

I know that they serve the lower income demographic, but that is just one of the many trends running against them as the world gets wealthier.   Their products are sub-par (a generous understatement), their online service is terrible beyond compare, the employees!!... (it appears that they must hire people from local homeless shelters and/or insane asylums), the stores are not appealing or well kept, and their groceries (meats/produce) are inedible.  Sure all this is all fixable, but will they fix it?


No disrespect intended, but if 56% of their half trillion of sales are from selling groceries, then I'd say that people really do in fact buy their groceries from Wal Mart.    Your description of the produce dept. is nothing like the Wal Mart nearest me. and regarding the world getting wealthier, I can't recall any period in history where there weren't far more poor people than wealthy people.

I agree.  The Walmart's in BC are very nice...no worse or better than Loblaws, Save-On-Foods or even Safeway.  The meat department is perfectly fine, although most of the meat is prepackaged, so you aren't going to get a butcher to cut it some special way for you.  It is clean and looks perfectly fine.  Not sure what Walmarts look like elsewhere, but they are just fine around here. 

Granted, on a busy weekend, the stores can become unwieldy because of the sheer number of people shopping there, but that isn't any different than Superstore/Loblaws or Costco.  They are just that busy!  Cheers!
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Palantir

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Re: WMT - Walmart Inc
« Reply #98 on: November 02, 2015, 01:30:19 PM »
If WMT can replicate AMZNs competitive advantages by building out these distribution centers why have they not done so?
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frank87

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Re: WMT - Walmart Inc
« Reply #99 on: November 02, 2015, 01:43:23 PM »
If WMT can replicate AMZNs competitive advantages by building out these distribution centers why have they not done so?

It's not easy to replicate Amazon's distribution network. Amazon itself would have difficulty doing that themselves today, in spite of a decade of learning via trial and error.

Add that to the fact that WMT originally built its supply chain to support brick and mortar stores in small towns and you get a sense of just how difficult that task can be.