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Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
Surviving In A Wal Mart Supercenter Environment
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Surviving In A Wal Mart Supercenter Environment

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  • 1. SURVIVING IN A WAL-MART SUPERCENTER ENVIRONMENT By Kenneth E. Stone Professor of Economics Iowa State University
  • 2. Top Ten North American Retailers By Sales, 2001 SOURCE: Chain Store News
  • 3. Top 10 U.S. Corporations By Sales, 2002 SOURCE: Fortune Magazine
  • 4. Top U.S. World Corporations by Sales, 2002 SOURCE: Fortune Magazine
  • 5. Top North American Food Stores, 2001 1 2 3 4 5 6 7 8 SOURCE: Supermarket News
  • 6. Top North American Food Stores, 2001 9 10 11 12 13 14 15 16 SOURCE: Supermarket News
  • 7. Average Sales Per Store for U.S. Supercenter Stores, 2001 SOURCE: DSN Retailing Today
  • 8. Average Sales Per Store for U.S. Club Stores, 2001 SOURCE: DSN Retailing Today
  • 9. U. S. MARKET SHARE OF MAJOR GROCERY RETAILERS Source: Fortune Magazine 1995 1996 1997 1998 1999 2000 2001 2 4 6 8 10 12 Market Share (%) Wal-Mart Kroger Albertson's Safeway Wal-Mart Kroger Albertson’s Safeway
  • 10. WAL-MART SUPERCENTER MARKET SHARES SOURCE: Trade Dimensions, Dec. 2001 31.9 24.2 21.2 17.8 16.2 15.7 15 13.6 12 Springfield, MO Memphis Oklahoma City Birmingham Albuquerque Kansas City Saint Louis Indianapolis Des Moines Market 0 5 10 15 20 25 30 35 40 WM Market Share, %
  • 11. An Overview of Wal-Mart
  • 12. SIZES OF WAL-MART SUPERCENTERS <ul><li>109,000 Sq. Ft. </li></ul><ul><ul><li>Smaller towns </li></ul></ul><ul><li>150,000 Sq. Ft. </li></ul><ul><ul><li>Market areas of 30,000+ </li></ul></ul><ul><li>180,000 Sq. Ft. </li></ul><ul><ul><li>Market areas of 30,000-50,000 </li></ul></ul><ul><li>220,000 Sq. Ft. </li></ul><ul><ul><li>Market areas larger than 50,000 </li></ul></ul>
  • 13. WAL-MART SUPERCENTERS LADIES APPAREL MENS APPAREL CHECKOUTS GROCERY HEALTH & BEAUTY AIDS PHARMACY COSMETICS LAYAWAY FABRICS & CRAFTS SEASONAL TOYS & GAMES HARDWARE PAINT SUPPLIES AUTOMOTIVE BABY WORLD GIRLS APPAREL SPORTING GOODS DRESSING ROOM HOSIERY SHOES DAIRY BAKERY BEDDING DRAPERIES SMALL APPLIANCES HOUSEWARES INTIMATES CAMERAS ELECTRONICS RECORDERS CARDS & BOOKS DELI OFFICE SUPPLIES PET FOOD HOME DECOR & FURNISHINGS MEATS PRODUCE CANDY, CIGARETTES, CRACKERS, & COOKIES BOYS APPAREL FASHION ACCESSORIES JEWRY DOMESTICS GARDEN CENTER AUTO CENTER PUBLIC RESTROOMS DELI CAFE ICE CREAM 120,000 SQUARE FEET
  • 14. WAL-MART SUPERCENTERS LADIES APPAREL MENS APPAREL CHECKOUTS GROCERY HEALTH & BEAUTY AIDS PHARMACY COSMETICS LAYAWAY FABRICS & CRAFTS SEASONAL TOYS & GAMES HARDWARE PAINT SUPPLIES AUTOMOTIVE BABY WORLD GIRLS APPAREL SPORTING GOODS DRESSING ROOM HOSIERY SHOES DAIRY BAKERY BEDDING DRAPERIES SMALL APPLIANCES HOUSEWARES INTIMATES CAMERAS ELECTRONICS RECORDERS CARDS & BOOKS DELI OFFICE SUPPLIES PET FOOD HOME DECOR & FURNISHINGS MEATS PRODUCE CANDY, CIGARETTES, CRACKERS, & COOKIES BOYS APPAREL FASHION ACCESSORIES JEWRY DOMESTICS GARDEN CENTER AUTO CENTER PUBLIC RESTROOMS DELI CAFE ICE CREAM PLUS 60-70,000 SQ.FT.OF GROCERY SPACE
  • 15. Number of Wal-Mart Supercenters in the U.S., 2002 Alaska - 0 Stores Hawaii - 0 Stores 1,066 Stores 3 3 6 10 5 0 11 14 13 22 6 2 0 7 10 19 19 53 36 135 40 43 34 43 53 69 31 34 49 39 30 13 8 39 19 34 17 5 45 20 4 5 4 3 0 2 1 0
  • 16. Wal-Mart Supercenter, 220,000 Sq. Ft., Ankeny, IA
  • 17. Wal-Mart Supercenter, 109,000 Sq. Ft., With Gas Station, Knoxville, IA
  • 18. Number of Neighborhood Markets in the U.S., 2002 Alaska - 0 Stores Hawaii - 0 Stores 31 Stores
  • 19. Wal-Mart Net Sales 1981-2001 Billion $
  • 20. 39 Centers Wal-Mart Regional Distribution Centers, 2002
  • 21. Wal-Mart Food Distribution Centers, 2002 26 Centers
  • 22. Cost of Distribution As a Percentage of Sales Source: Discount Store News
  • 23. Cost of Distribution Comparison For $25 Billion Annual Sales $1.25 Bil.
  • 24. SUPER TARGET STORE LAYOUT GENERAL MERCHANDISE
  • 25. SUPER TARGET FOOD LAYOUT-ARCHER FARMS
  • 26. TARGET 5-YEAR SALES PROJECTIONS *=Projected 29.3 32.9 37.8 43.5 50.1 57.6 2000 2001* 2002* 2003* 2004* 2005* Year 0 10 20 30 40 50 60 70 Sales ($ Million) SOURCE: DSN Retailing Today
  • 27. Impacts of Wal-Mart Stores on Existing Businesses
  • 28. 12 Year Study of Regular Wal-Mart Stores in Iowa
  • 29. IMPACTS OF BIG BOX STORES Rules of Thumb <ul><li>Local businesses that are selling something different are in good luck and will probably experience an increase in sales because of the “spillover” effect of the additional traffic. </li></ul><ul><li>Local businesses that are selling the same merchandise as the big box store will probably lose sales unless they reposition themselves. </li></ul>
  • 30. Change in General Merchandise Sales in Iowa Towns, 12 Years after Wal-Mart
  • 31. Change in Building Materials Sales in Iowa Towns, 12 Years after Wal-Mart
  • 32. Change in Eating & Drinking Sales in Iowa Towns, 12 Years after Wal-Mart
  • 33. Change in Automotive Sales in Iowa Towns, 12 Years after Wal-Mart
  • 34. Change in Food Store Sales in Iowa Towns, 12 Years after Wal-Mart
  • 35. Change in Home Furnishings Sales in Iowa Towns, 12 Years after Wal-Mart
  • 36. Change in Apparel Sales in Iowa Towns, 12 Years after Wal-Mart
  • 37. Change in Specialty Store Sales in Iowa Towns, 12 Years after Wal-Mart
  • 38. Change in Services Sales in Iowa Towns, 12 Years after Wal-Mart
  • 39. Change in Total Sales in Iowa Towns, 12 Years after Wal-Mart
  • 40. CHANGES IN TOTAL SALES IN IOWA SMALL TOWNS, 12 YEARS AFTER WAL-MART* * Towns Under 4,000 Population
  • 41. Percent Change in Per Capita Sales in Iowa Stores, 1983-2000
  • 42. U.S. Stores Impacted by Discount Department Stores, 1980-2000 * Percent Change from 1987-2000
  • 43. Percent Change in Sales of Iowa Firms Due to Lifestyle Changes, 1983-2000
  • 44. U.S. High Growth Stores, 1980-2000
  • 45. Texas Supercenter Study
  • 46. Department Store Sales Changes in Texas Towns After Wal-Mart Supercenters Opened
  • 47. Grocery Store Sales Changes in Texas Towns After Wal-Mart Supercenters Opened
  • 48. Drug Store Sales Changes in Texas Towns After Wal-Mart Supercenters Opened
  • 49. Total Sales Changes in Texas Towns After Wal-Mart Supercenters Opened
  • 50. MISSISSIPPI WAL-MART SUPERCENTER STUDY
  • 51. % Change in Av. General Merchandise Pull Factor for Mississippi Host Counties After Entry of Wal-Mart Supercenter Counties Less Than 100,000 Population
  • 52. % Change in Av. Food Store Pull Factor for Mississippi Host Counties After Entry of Wal-Mart Supercenter Counties Less Than 100,000 Population
  • 53. % Change in Av. Total Sales Pull Factor for Mississippi Host Counties After Entry of Wal-Mart Supercenter Counties Less Than 100,000 Population
  • 54. Study of Impact of Iowa Wal-Mart Supercenters
  • 55. IMPACT OF WAL-MART SUPERCENTERS ON HOST TOWNS IN IOWA Food Stores
  • 56. Dillow’s Super Value Closed One Year After Wal-Mart Supercenter Opened in Ankeny, IA
  • 57. Jubilee Food Store in Polk City, IA, Closed 3 Months After Wal-Mart Supercenter Opened in Ankeny, IA
  • 58. Town & Country Grocery in Slater, IA, Still Open 4 Years After Wal-Mart Supercenter Opened in Ankeny, IA
  • 59. IMPACT OF WAL-MART SUPERCENTERS ON HOST TOWNS IN IOWA General Merchandise
  • 60. IMPACT OF WAL-MART SUPERCENTERS ON HOST TOWNS IN IOWA Total Sales
  • 61. First-Year Impact of Supercenter on Host Town Sales (200,000 Sq.Ft., Average Town Population = 25,000)
  • 62. Actions Necessary for Competing
  • 63. HAVE AN ATTITUDE CHECK <ul><li>In a free-enterprise economy, all firms are free to compete. </li></ul><ul><li>Recognize that big-box stores will enlarge the trade area size. </li></ul><ul><li>It is possible to co-exist in a mass merchandise environment. </li></ul><ul><li>You will probably need to change your mode of operation. </li></ul>
  • 64. DEVELOP A STRATEGY <ul><li>Analyze the Market </li></ul><ul><ul><li>Ages </li></ul></ul><ul><ul><li>Income </li></ul></ul><ul><ul><li>Life styles </li></ul></ul><ul><li>Analyze Your Business and the Competition for: </li></ul><ul><ul><li>Strengths </li></ul></ul><ul><ul><li>Weaknesses </li></ul></ul><ul><ul><li>Market Share </li></ul></ul>
  • 65. DEVELOP A STRATEGY <ul><li>Determine your competitive advantage </li></ul><ul><li>Determine your niche </li></ul><ul><li>Determine necessary changes </li></ul><ul><ul><li>Target market </li></ul></ul><ul><ul><li>Inventory </li></ul></ul><ul><ul><li>Pricing structure </li></ul></ul><ul><ul><li>Marketing methods </li></ul></ul>
  • 66. Wal-Mart’s Over-arching Strategy is Every-Day- Low-Prices The Word “Sale” is Never Mentioned In Today’s Ads.
  • 67. Wal-Mart’s Motto Went from “Always the Lowest Price” to “ Always the Low Price”.
  • 68. Wal-Mart’s Motto Added “on the Brands You Trust” But Dropped this as Private Label Was Added.
  • 69. Wal-Mart Used the Term “Sale” in Their Earlier Ads,But Dropped it in Order to Strengthen EDLP
  • 70. FINALLY, WAL-MART REALIZED THAT IT COULDN’T HAVE SALES AND EDLP
  • 71. Wal-Mart Adopted the “ Smiley Face” as a Symbol for Falling Prices, a euphemism for Sale.
  • 72. EDLP Has Evolved to “ Always, Low Prices”
  • 73. Wal-Mart Grand Openings Focus on Special Values on Price-Sensitive Items
  • 74. MERCHANDISING TIPS <ul><li>Try to handle different merchandise. </li></ul><ul><li>Fill the voids. </li></ul><ul><li>Buy well. </li></ul><ul><li>Consider upscale merchandise. </li></ul><ul><li>Emphasize private-label merchandise. </li></ul><ul><li>Get rid of slow-moving items. </li></ul>
  • 75. Private Label SKU Count and Share of Sales, 2000 PL Share of Total Dollars SKU Count Company 16% 6,000 Albertson’s 20% 5,000 Wal-Mart 20% 3,000 Safeway 20% 6,000 Kroger 23% 2,700 Winn Dixie 23% 2,300 A & P
  • 76. MARKETING TIPS <ul><li>Know and evaluate your market. </li></ul><ul><li>Focus your advertising; stress competitive advantage. </li></ul><ul><li>Sharpen your pricing skills. </li></ul><ul><li>Opening hours convenient to customer </li></ul><ul><li>Adopt a “no hassle” returns policy. </li></ul>
  • 77. CUB (SUPERVALUE)-UPSCALE BOX STORE Big Selection Low Prices Low Service Good Hours (Bag Your Own)
  • 78. HY-VEE, MIDWESTERN STATES Hy-Vee has Stores in Several Midwestern States. New Stores Are Very Large with Large Selections, Many Amenities and Full Service.
  • 79. HY-VEE FEATURES HIGH QUALITY MEATS
  • 80. Fareway is an Iowa Chain that has an Outstanding Meat Department and Produces Very Good Weekly Circulars, Featuring Good Values on Price- Sensitive Items
  • 81. ALDI is a Limited- Selection, Low-Service Store Featuring Low Prices Primarily on Private-Label Items
  • 82. BANANAS ARE HIGHLY PRICE-SENSITIVE Price Check, Ames & Ankeny, IA, Late July, 02 Dahl’s $.19 Aldi $.25 Super T $.45 Fareway $.45 WM SC $.48 CUB $.49 Hy-Vee $.49
  • 83. MIRACLE WHIP IS VERY PRICE SENSITIVE Price Check, Ames & Ankeny, IA, Late July 02 WM SC $1.97 Cub $1.99 Super T $2.00 Fareway $2.19 Dahl’s $2.49 Hy-Vee $2.79 K Mart $3.39
  • 84. Wal-Mart $2.00 Fareway $2.00 Super T $2.04 Cub $2.59 Dahl’s $2.69 K Mart $2.79 Hy-Vee $3.39 SNACK CRACKERS ARE SOMEWHAT PRICE SENSITIVE Price Check, Ames & Ankeny, IA, Late July 02
  • 85. LAUNDRY DETERGENT IS VERY PRICE SENSITIVE Price Check, Ames & Ankeny, IA, Late July 02 WM SC $5.24 Super T $5.24 Cub $5.48 Hy-Vee $5.49 Fareway $5.49 K Mart $5.99 Dahl’s $5.99
  • 86. SALTINE CRACKERS ARE PRICE-SENSITIVE Price Check, Ames & Ankeny, IA, Last Week July, 02 Fareway $1.50 Super T $1.54 WM SC $1.67 Hy-Vee $1.99 Dahl’s $2.09 Cub $2.19 K Mart $2.19
  • 87. PAPER PRODUCTS (LIKE KLEENEX) ARE PRICE-SENSITIVE Price Check, Ames & Ankeny, IA, Late July, 02 Super T $.89 Hy-Vee $.97 WM SC $.98 Fareway $1.07 CUB $1.09 Dahl’s $1.17 K Mart $1.29
  • 88. PET FOOD IS VERY PRICE-SENSITIVE Price Check, Ames & Ankeny, IA, Late July 02 CUB $7.55 WM SC $8.28 Super T $8.29 Dahl’s $8.79 Hy-Vee $9.17 Fareway N/A
  • 89. COFFEE IS SOMEWHAT PRICE-SENSITIVE Price Check, Ames & Ankeny, IA, Late July 02 Dahl’s $5.55 WM SC $5.67 CUB $5.89 Fareway $5.89 Super T $6.49 K Mart $6.49 Hy-Vee N/A
  • 90. LOW WATTAGE BULBS ARE PRICE-SENSITIVE Price Check, Ames & Ankeny, IA, Late July, 02 CUB $0.99 WM SC $1.10 Super T $1.14 Fareway $1.48 Hy-Vee $1.48 Dahl’s $1.99
  • 91. HIGHER WATTAGE BULBS ARE NOT PRICE-SENSITIVE Price Check, Ames & Ankeny, IA, Late July, 02 CUB $1.46 Fareway $1.69 Hy-Vee $1.69 Super T $1.94 WM SC $1.96 Dahl’s $1.99
  • 92. WAL-MART IS ESTABLISHING A LARGE PRIVATE LABEL SELECTION (GREAT VALUE)
  • 93. WAL-MART PRICING STRATEGY <ul><li>Every Day Low Prices means we will be as low or lower than the competition on all similar items we carry. It has never been our intention to beat the competition on every item. We ignore short-term incentives designed to hype sales for a short period of time. This means we do not support couponing, rebates, sweepstakes, unnecessary advertising, etc. because those activities add costs that will come back to us in the form of higher cost of goods. </li></ul>
  • 94. WAL-MART PRICING STRATEGY <ul><li>“ Our basic competitive policy for the fresh department is: </li></ul><ul><ul><li>Use the 850 list plus any items specified by your regional vice president. </li></ul></ul><ul><ul><li>Meet all competitive prices. </li></ul></ul><ul><ul><li>If a competitor lowers the price on additional items in the marketplace, then you are to meet the price of the additional competition items. </li></ul></ul><ul><ul><li>If a competitor lowers additional items again, then you should meet the price on those additional items, plus lower prices on other key items.” </li></ul></ul>
  • 95. WAL-MART PRICING STRATEGY <ul><li>“ Wal-Mart will not be undersold by any competitor. If a competitor has a lower price on any item, we will meet that price. Store Managers have the authority to lower our prices to meet or beat our competitors. We must regularly check our competitors and react to any changes.” </li></ul>
  • 96. STRESS CUSTOMER RELATIONS <ul><li>Offer a friendly greeting to customers. </li></ul><ul><li>Solicit complaints, take action. </li></ul><ul><li>Go the extra mile. </li></ul><ul><li>It costs less to keep existing customers. </li></ul><ul><li>Live by the golden rule. </li></ul>
  • 97. OFFER GREAT SERVICE <ul><li>Develop knowledge of store and products. </li></ul><ul><li>Offer deliveries/Carry-outs. </li></ul><ul><li>Develop special order capability. </li></ul><ul><li>Become a one-stop service center. </li></ul><ul><li>Exceed customer expectations. </li></ul>
  • 98. Some Stores, Like Hardwares Are Adding a Variety of Services as a Way of Attracting Customers
  • 99. DEVELOP A TEAM CONCEPT <ul><li>Set a good example. </li></ul><ul><li>Train employees well. </li></ul><ul><li>Have regular company meetings. </li></ul><ul><li>Empower employees. </li></ul><ul><li>Develop participative management. </li></ul><ul><li>Consider “open book” management. </li></ul><ul><li>Reward employees on total performance. </li></ul>
  • 100. CONTINUALLY IMPROVE OPERATIONS <ul><li>Adopt modern technology. </li></ul><ul><li>“Brain-storm” to find better methods. </li></ul><ul><li>Persist in reducing operating costs. </li></ul><ul><li>Maintain and repair facilities (carts). </li></ul><ul><li>Know your financial statements. </li></ul><ul><li>Network with other merchants. </li></ul>
  • 101. Self Checkout Station In 45 States, Over 2,000 Stores
  • 102. TIPS FOR GROCERS <ul><li>Find your niche. </li></ul><ul><ul><li>Meats </li></ul></ul><ul><ul><li>Full service </li></ul></ul><ul><ul><li>Deli/catering </li></ul></ul><ul><li>Price-sensitive items within 10% of WM </li></ul><ul><li>Stress private label items </li></ul><ul><li>Focus on faster and easier shopping </li></ul><ul><li>Feature carry-out and/or drive-by service </li></ul>
  • 103. TIPS FOR GROCERS (Cont’d) <ul><li>Develop a loyalty program </li></ul><ul><li>Clean and repair (restrooms, carts, dairy,etc.) </li></ul><ul><li>Check big-box prices on “blind items” </li></ul><ul><li>Post in-store signage when you have lower price on “blind items.” </li></ul><ul><li>Advertise regularly, showing good prices on price-sensitive items. </li></ul><ul><li>Always state your competitive advantages in your ads. </li></ul>
  • 104. SAM WALTON’S TEN COMMANDMENTS OF BUSINESS LEADERSHIP <ul><li>Commit to your business. </li></ul><ul><li>Share your profits. </li></ul><ul><li>Motivate your partners. </li></ul><ul><li>Communicate all that you know. </li></ul><ul><li>Appreciate what your associates do. </li></ul><ul><li>Celebrate your success. </li></ul><ul><li>Listen to everyone in the company. </li></ul><ul><li>Exceed your customer’s expectations. </li></ul><ul><li>Control your expenses better than competitors </li></ul><ul><li>Swim upstream and avoid conventional wisdom. </li></ul>
  • 105. FOR ADDITIONAL INFORMATION Contact: Kenneth E. Stone Professor of Economics Iowa State University Ames, IA 50011 Phone: (515) 294-6269 Fax: (515) 294-1700 E-mail: [email_address] Web: WWW.econ.iastate.edu/retail

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