On The Insider: Beach Boys and Babes

BNET Industries

Food Industry

Industry news and insights by Dan Mitchell

Submit your own

Wal-Mart, Price Clubs Make Bank on Slowdown

June 6th, 2008 @ 1:31 pm

0 Comments

Tags: Bank, Wal-Mart Stores Inc., BJ's Wholesale Club Inc., Sales Strategy, Food & Beverage, Sales Force Management, Sales, Manufacturing, Dan Mitchell

A Reuters article on Thursday about Wal-Mart “whittling down” its merchandise selection doesn’t mention food. Mostly, it’s about the chain trying to make its stores a bit more attractive, less cluttered and less daunting to shoppers to better compete in many markets with rival Target.

But with prices or perishables soaring as they are, it could be that Wal-Mart is also making room to sell more food – even if that wasn’t the original plan. Unlike a lot of grocers, Wal-Mart — along with price clubs such as BJ’s Wholesale Club and Costco — are doing especially well in the downturn.

The Wall Street Journal’s Marketbeat blog noted on Thursday that while other product categories are seeing “mixed results” at price clubs, “consumables” (which also includes gasoline) have seen a 3.9 percent increase in sales. And sales of perishable items at BJ’s Wholesale Club are up by 11 percent.

Wal-Mart, meanwhile, expects total sales to rise by 2 to 4 percent in June.

Update: Lisa Everitt has more on Costco’s (so far) winning strategy over at BNET Retail.

Dan Mitchell has spent the past 20 years writing and editing for outlets such as the Chicago Tribune, the Minneapolis Star-Tribune, National Public Radio, Business 2.0, and Wired.

TalkbackShare your ideas and expertise on this topic
What do you think?
The following tags are supported in BNET comments: <b></b> <i></i> <u></u> <pre></pre>
You are currently a guest | Login?

Trackbacks

The URI to TrackBack this entry is: http://industry.bnet.com/food/100073/wal-mart-price-clubs-make-bank-on-slowdown/trackback/

No trackbacks yet.

Top Companies
*Figures represent the most recent fiscal year.
advertisement
Recommended Business Articles
BNET Industry Analyst Profiles
Blogger Thumbnail

Dan Mitchell

Dan Mitchell has spent the past 20 years writing and editing for newspapers, magazines, and Web publications. Currently, he writes the What's Online column for the Saturday business section of the New York Times. He has also written for the Chicago Tribune, the Minneapolis Star-Tribune, National Public Radio, Business 2.0, and Wired. more »

AboutFood Industry

BNET Food provides daily industry news coverage and insights for managers and executives, focusing on the major companies in the food and beverage sector, from manufacturers to retailers. In addition to detailed company profiles, we bring you critical analysis on new alliances and partnerships, new products, mergers and acquisitions, labor and cost management, investments and deal flow, and a host of other important business issues.

advertisement