Meat + Poultry - August 2007 - 87

m s

m e a t p r o c e s s i ng s y s t e m s

on us to be the everyday low price in the
food area."
Another indication "business as usual" is
not ruling the day was indicated in a shift
announced recently by Wal-Mart management regarding expansion plans.
For some time, Wall Street analysts have
suggested Wal-Mart would add value by slowing down the rate at which it adds new stores.
For instance, Michael Exstein, an analyst with
Credit Suisse, New York, was critical earlier
this year of management's apparent unwillingness to change its approach.
"We believe a move toward better capital
allocation (slower expansion, cap-ex reduction, return cash to shareholders) will help
reinvigorate the stock and the organization,"
Exstein said in May.
Accordingly, Exstein was congratulatory a
few weeks later when management addressed
the issue at its annual meeting.
In particular, he noted a management decision to "slow down its new store expansion
from 265-270 new supercenters to 190-200 in
2007 and then down to 170 in 2008-2010."
"Longer term, we believe Wal-Mart's customer segmentation and 'store of the community'
initiatives will be a major driver of sales as the
company attempts to better tailor its merchandise on a market-by-market and even store-bystore basis. With better store standards, remodeling of key departments and better tailoring of
merchandise, Wal-Mart should be repositioned
to drive higher same-store sales growth."
Customizing stores on a local basis is not
the same thing as individualized merchandising, a problem that had developed but is
being rectified, Fleming said in the McKinsey
Quarterly interview.
"Because buyers had the ability to get any
kind of packaging they wanted with any kind
of signage from suppliers, our stores looked
like a city with no zoning," he said. "Furthermore, the signs in the stores were different
from the circulars, which didn't necessarily
look like the television advertising."
He said the company has moved toward "a
more centralized function," establishing "processes to ensure consistency."

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L. Joshua Sosland is editor of Sosland Publishing Co.'s Food
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August 2007

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Meat + Poultry - August 2007

Table of Contents for the Digital Edition of Meat + Poultry - August 2007

Contents
Meat + Poultry - August 2007 - 1
Meat + Poultry - August 2007 - 2
Meat + Poultry - August 2007 - 3
Meat + Poultry - August 2007 - Contents
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-december-2024
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https://digital.meatpoultry.com/sosland/mp/special-supplement-bacon-trends-technology-march-2022
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-may-2021
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-march-2021
https://digital.meatpoultry.com/sosland/mp/2021_02_01
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