1. In the time highlighted in the case, Sears and Wal-Mart both had impressive ROEs for the retail industry. However, the retailing strategies of the two large department store chains vary. Wal-Mart operates as a discount retailer and even has a slogan of “Always low prices. ” In contrast, Sears is a more traditional department store. Based on this distinction, Wal-Mart focuses on high turnover and less on profit margin. Wal-Mart and Sears offer different product mixes. While their offerings overlap in some areas, such as clothing and some home furnishings, Sears offers more in the way of large appliances and automotive repair.
Wal-Mart, on the other hand, offers grocery items, toys, and more entertainment options than Sears, establishing itself more as the one-stop shopping center. Sears has recently tried to change its product mix in order to better reach its target market of middle-class female shoppers. Wal-Mart’s target market, on the other hand, is likely lower-middle class and below individual shoppers, as well as middle class and below families, who are looking for one-stop shopping and the option to purchase in bulk. Wal-Mart serves as a lower-quality replacement for specialty stores since it offers so many products but at lower prices.
In addition to its retail operations, Sears was involved in the credit and services business. Sears offered its own credit card and acted similarly to a financial institution. In contrast, Wal-Mart only sponsors a credit card, with Chase Manhattan Bank bearing the credit risk for these cardholders. In addition to retail and credit, Sears offered services such as home remodeling and appliance repair. Wal-Mart also is not a pure retailer, as it offers bulk products at its Sam’s Club stores and also draws revenues from Sam’s Club memberships. Sears and Wal-Mart are distinctly different in their retailing locations.
The Essay on Why Wal-Mart successful?
Do you know how big is Wal-Mart? Wal-Mart is the world’s largest retailer, which has approximately 3,900 stores in the U.S. and 1.6 million employees. In 1962, when Sam Walton opened the first Wal-Mart store in Rogers, Arkansas, no one could have ever predicted the enormous accomplishment this small-town merchant would have. The reasons why Wal-Mart is successful are because of its low ...
Whereas Wal-Mart has stand-alone, individual stores, Sears stores are located within malls and large shopping centers. Because it is difficult for Sears to make itself a shopping destination, it relies on the flow of customer traffic from other stores. Wal-Mart on the other hand is seen as a store that contains everything and has made itself distinct. All of its stores are enormous buildings that have “Wal-Mart” in front in huge letters and are often placed along main roadways. Meanwhile, Sears stores are less visible to outside customers because of often being embedded within a mall.
