WSJ: Wal-Mart Disrupted?

The Wall Street Journal ran an eye-opening front page that explored the demise of Walmart (full story).  It's a great read and the major points are:

• Consumers are changing: Price may matter less
• Quality may matter more
• Big consumer goods suppliers are turning away from Wal-Mart
• Growth at competing stores is outpacing Wal-Mart

And from an investor's point of view, two clear warning signs:

• The stock has collapsed in the past five years
• There's more downside

Is Wal-Mart being disrupted? Clearly the company has continued to play the same game in a changing environment. And the results have not come through. Here are a few questions for retailers to consider:

• Is it time for a "Buy USA" retailer that supports domestic suppliers over cheaper, usually Chinese-made goods?
• Are there signs that consumers are ready to move in that direction?
• DId your view change following the Chinese-made recalls this year?

**Other sources**
Not everyone agrees that Wal-Mart is so easily undone.

SeekingAlpha has a good take with commentary.

Comments

[Al Brown]

I don't know if Wal-Mart is being disrupted, but it certainly has lost its focus since the passing of its founder. I need only look at the deplorable state of the local Wal-Mart to know that Sam Walton hasn't dropped by in quite a while.

[Piper121]

Did you also see the WSJ released a poll yesterday, showing Republicans are becoming increasingly concerned with free trade and the origin of products? China and safety is definitely an issue.

The organization I work for, Wake Up Wal-Mart, released a report outlining the joint venture between Wal-Mart and China. I think it will have devastating affects on the US economy in the long run. I hope the company does more to change its business practices so they consider safety over profit.