Shop Talk
Retailers, consumers and prices
Vitamins, cheaper meat, infant clothes big recession sellers
Mike Duke, the newly installed CEO of Wal-Mart, has been watching the recession play out in the cash register at his stores.
In an interview on the Today Show, Duke took Matt Lauer on a walk through a Walmart store, and talked about how he is seeing his shoppers navigate the downturn.
- They are buying bigger boxes of diapers at the beginning of the month, when they have just been paid, but gravitating toward smaller boxes when they run out of cash later in the month.
- They are taking more vitamins, hoping to keep themselves healthy and avoid having to miss any time at work.
- Infant clothes are selling faster than adult apparel as parents forsake the latest styles to keep their growing children clothed.
- While flat panel televisions may seem like a splurge, they are more of a necessity when a family is spending less on entertainment outside of the home and forgoing vacations.
- They are using cash more often to pay for their purchases.
When might Duke get a sense that consumers are feeling a little bit better about things?
He said possibly when more expensive cuts of meat start ringing up strong sales again.
(Photo: Reuters)
Creating a to-do list for Wal-Mart’s new CEO
This Saturday, Lee Scott will retire as CEO of Wal-Mart, the world’s biggest retailer, and Mike Duke will step in to the CEO shoes on Sunday.
Since the management change was announced in November, ShopTalk is fairly certain that Duke has come up with a pretty long list of things to do in his first few months as CEO.
But Reuters talked to analysts and investors about what they want Duke to focus on.
Some said Duke should continue the turnaround started by Scott, looking to boost results in its existing U.S. stores by slowing the opening of new ones.
Others said Duke needs to focus on building loyalty among the new shoppers that it has attracted during the recession to help keep its sales momentum going when times get better.
Another issue for Duke will be to find ways to spur strong sales in its grocery business as it looses the boost created last year from soaring food inflation.
If you could add to Duke’s to-do list, what would you want him to focus on?
I know that a lot of the soft goods, toys, and the like are from China… my concern is the food. My husband bought some nuts that listed ‘Product of California -packaged in China’.
If you look at the Great Value brand of foods- They say ‘Marketed by Wal-mart or Distributed by Wal-mart’. The origin is not on the package.
The prices are low, but keep in mind that China has no problem poisoning their own kids with tainted milk.
WHY ON EARTH WOULD THEY CARE ABOUT US?
If Sam Walton were still alive this whole China thing would be a non-issue.
Maybe the heirs will wake up and start using domestic products again.
Check Out Line: Changing of the Guard at Wal-Mart
Check Out succession planning at Wal-Mart
The world’s biggest retailer is about to get a new occupant in its corner office. Mike Duke, who currently heads the chain’s international operations, will take over as chief executive in February, replacing Lee Scott.
Scott, who has been CEO for more than eight years, will stay on as chairman of the board’s executive committee.
The low-price retail leader also immediately promoted Eduardo Castro-Wright, head of the U.S. operations, to vice chairman, a move that at least one analyst said could point to him as a future CEO.
Wal-Mart is expected to be a key winner this holiday season as cash-strapped shoppers seek out bargains. The retailer has said it will introduce a new round of price cuts every week until Christmas.
Also in the basket:
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Resident Shop Talk Expert
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Gemerally Walmart customers are meat and McDonald eaters although more new customers arrive at Walmart, Cosgo and Target daily, supporting what would be larger shrinking numbers.
Purchasing larger and better TV’s indicate they are only frugal in forced way’s but still are looking for instant gratification and seek justification of such spending.
Walmart can look to increased gasoline sales as a early harbinger of better times.
Don Jones
TownhallPlus.com