Wednesday, September 09, 2009

Project Impact - Walmart's Hit List

The recession has been a boon for Wal-Mart. Shoppers pressed by the economy swallowed their standards and traded down while competitors already on shaky ground went under. Now Wal-Mart is rolling out an initiative to gun for other competitors it thinks it can kill off, Project Impact. Some of the stuff seems to be no brainers, like cleaner stores and friendlier staff. The big questions are can Wal-Mart afford to transform its massive store base, can it pay the new staff enough to stay friendly while maintaining razor-thin margins, and can it keep shoppers from leaving as the economy improves?

It reminds me of a scene from Demolition Man... "After the franchise wars, all restaurants were Taco Bells."

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