The tide turns. Wal-Mart rises. ~ Brand Mix

Thursday, May 29, 2008

The tide turns. Wal-Mart rises.

(via Freakonomics)

It only seems like yesterday that everyone was writing off Wal-Mart and singing Target's praises but here we are, in a maybe recession, and how things have changed.

Wal-Mart wasn't necessarily hoping for a downturn but was quick to realize that it might be good news. In October 2007, CEO Lee Scott argued that “Our low prices and low-cost business model should give us an advantage over other retailers if things get more difficult for consumers.” (also from Freakonomics)

Meanwhile, Whole Foods quarterly net income dropped 13% vs. one year ago and its share price is down almost 30% since June 1, 2007. Looks like shopping baskets are more Sam's Choice and less Archer Farms or 365 Organic as people battle rising food and gas prices.

1) Are Wal-Mart’s Products Normal? Freakonomics
2) Whole Foods net income drops 13%; shares decline: MarketWatch

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