by AgentR11 » Fri 13 Jan 2012, 14:06:35
$this->bbcode_second_pass_quote('Revi', 'W')al Mart's warehouse on wheels could have trouble with high energy prices. Wal Mart is just the latest of a series of retailers that have captured the market and then failed. Think of Montgomery Ward and Sears, followed by Ames and K mart. Wal Mart is a big corporation, but it could all come down quickly.
I've been thinking about this since you posted it, couldn't quite figure out how to put my response till now.
WalMart's problem is not its warehouse on wheels, the problem is its customers. As much as I am *ABLE* to ride my bike to Walmart and buy a tool or some groceries or a shirt; that kind of traffic is insufficient to drive the volume that stores the size of the Walmarts require. To move the needed volume, the customers need to come in powered, trunk wielding vehicles.
But who makes up the bulk of Walmart's sales? Lower and middle class folks. If the trip to walmart costs $1-$2, that's really not a big deal even to the bottom. If the trip to walmart and back costs $20, that's game over. And to make matters worse, that price is one of those very high price sensitivity prices. How many people know what the cost of a 12pk of Fanta Orange is, today, at the grocery store. How many can tell you within 5cents what the price of gasoline is currently at their corner filling station? And the further down the ladder people are, the more they know that last number, and don't know the first. [$ = US$2012]
This equals the death of the big box concept.
The low end is crushed by customer transportation cost; the high end destroyed by upper and upper middle class folks having a better shopping experience on BuyMyFoodOnline.Com and AmathongAnonymous.com.
That said, we're still ok for a while; gas is still cheap, poor people still find a way to drive to the store, and I still ride my $1500 bicycle to get groceries and fast food.. lol.