WalMart Overextends
WalMart is losing its brand mojo. As evidenced in our 1to1 Weekly story this week, the mega-retailer will now experiment with different store sizes. This comes on the heels of getting into high-definition TV, organic foods, low-priced drug prescriptions, high-end concept stores and a flirtation with banking. All of this, in a way, is based on sound customer strategy. I'm sure there are masses of customers that would be attracted to WalMart for all these new reasons. And I'm sure WalMart has done its homework with market research before launching these extensions. But at some point every brand has to maintain its sharp edge.
WalMart's sharp edge, in my opinion, is everything at low prices and huge supplies. I'm not so sure it can build brand magnetism with its current customer consistuency by being the butcher, baker and candlestick maker. And I'm not sure it can morph into a high-end brand and be strong with the upper crust. I think WalMart is playing to Wall Street. It's looking to grow at all costs and it may spend its brand in the process.
