- Summary: Wal-Mart (NYSE:WMT), long known for its identical stores, has begun to adopt six model store types for different demographics. Eduardo Castro-Wright, the company's CEO of U.S. stores noted that if you have one store type across geographies "you end up under-serving everyone because you don't have an offering that is specific to that customer segment." One of the challenges Wal-Mart is currently facing is a slow-down of same store sales which dropped from 9% in 1999 to 3% last year. Competitor Target (NYSE:TGT) which sells at discount prices to more upscale shoppers recorded gains of 6% last year. This is not Mr. Castro-Wright's first shot at localization: as former head of Wal-Mart Mexico he refined the company's product mix to target various income levels.
- Comment on related stocks/ETFs: Wal-Mart has its share of bears and bulls: Hilary Kramer doesn't think there's room for upside at Wal-Mart, and prefers Target's upscale approach. Yaser Anwar thinks there's room for growth at Wal-Mart, but Investopedia Advisor doesn't see a turnaround there any time soon. See the company's recent earnings call transcript.
Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):