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Wal-Mart Era Reaching Its End

Brands and consumers looking beyond the big box

By Kate Schwartz, Newser User

Posted Oct 3, 2007 8:27 PM CDT

(Newser) – Wal-Mart may be king, but its throne is shrinking: A judge awarded $62.3 million to underpaid workers today, yet another blow to the mega-seller. Big-name brands like PepsiCo are opting for companies like Whole Foods, as rivals lure American buyers and the Internet dwarfs Wal-Mart's 142,000-item stock, reports the Wall Street Journal.

With its US revenue 4.5 times that of Target, Wal-Mart remains a force in retail. But its supercenter-style store may be a weakness as buyers demand freshness and choice, a tough change for a company that relies on uniformity and scale. "For the first time in a long time, quality has a chance to gain on price," says a consultant.

[Images (4)]

[Videos (1)]

Wal-Mart "reeducated" customers to demand lower and lower prices, along with other practices that changed the global landscape of the retail. ((c) Clean Wal-Mart)

Wal-Mart has had mixed success overseas, notably in Japan where Wal-Mart's trademarked low prices are seen culturally as an indication of low quality merchandise. (Getty Images)

Wal-Mart's influence in the retail universe is slipping as agile competitors redefine business for an emerging new era. ((c) northernplateguy)

Wal-Mart founder Sam Walton used a combination of low prices and relentless expansion to create a business model that would change the American economy. ((c) code poet)

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Wal-Mart rolls back prices in this 1999 ad. (jholton (YouTube))

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Wal-Mart Era Reaching Its End