January 31, 2002

New study focuses on how to compete against Wal-Mart Supercenters

by Bryan Salvage

Wal-Mart Supercenters means different things to different businesses. On one hand, they're admired for their continuing growth and success, which translates into increasing business potential for those red meat and poultry suppliers who “meat” the grade. On the other hand, they're greatly feared by regional, independent competitors -- many go out of business once a Wal-Mart Supercenter is built in the area. Some insiders are betting that smaller competitors can compete and thrive against this retail behemoth. In fact, a new study addressing this topic called the Wal-Mart Supercenter Customer Loyalty Study is being unveiled at the 2002 National Grocers Association annual convention on Feb. 13 in Las Vegas by NGA and People Solutions Strategies to bring this point home.

Competing against a Wal-Mart Supercenter requires a focus on excellence, solid human resource practices and a higher level of organization performance, said Fred Martels, PSS managing partner.

“Customers must be able to see a point of difference between your store and Wal-Mart that is distinctive and memorable,” he says. “In your customers' mind, if all things are equal Wal-Mart wins.”

“Grocers, both large and small, need to really listen and understand their customer's needs or they are not going to survive,” added Frank DiPasquale, NGA senior vice president. “Wal-Mart says they know their customers better than anyone else in the United States. They collect data, conduct focus groups and surveys -- and we should, too.”

This article reprinted with permission from Meat Marketing and Technology Magazine.

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