Learning to speak Wal-Martian

CBS Marketwatch

Addressing the retailer's slowing growth rate of same-store sales -- sales generated in stores open at least a year, a key industry benchmark -- the finance chief [Thomas Schoewe] said it was almost a nonevent compared with Wal-Mart's double-digit percentage increases in sales and earnings per share.

Schoewe said higher gas prices had the greatest impact on same-store sales, and also dismissed criticism that the company is cannibalizing older stores sales by opening new ones in the same market.

"We call it market development; you call it cannibalization," he told reporters. "We decided internally the term 'cannibalization' is kind of negative. We're trying to wipe that term out. We call it 'internally impacting ourselves' or 'market development.'"

Snorf! Costco - COST

In the article, titled: Wal-Mart Stores Inc. Chief Executive Lee Scott said Tuesday that the nation's unions have declared war on the world's largest retailer, CEO Lee Scott had this to say:

"I don't know where this 'living wage' stuff came from," Scott told reporters on Tuesday.

The chief executive said people were operating under the misconception that Wal-Mart's No. 1 retail position meant it could pay the biggest wages. But the company's commitment to "everyday low prices" precludes that, as any loss of efficiencies could eventually hurt consumers in the form of higher prices, Scott added.

Ooops. Ixnay on talking down the iving-lay age-way thing, Lee. And, since you brought it up, eventually, when?

Okee-dokee, so the question is if you can get a gallon of milk in Las Vegas for:

$1.95 - Walmart
$3.04 - Albertsons
$3.25 - Vons

(Put the smaller grocers and bodegas at, ohh, maybe $3.50.)

And, a brand-identical, 9-item grocery bag (milk, cereal, Coke, bread, lettuce, carrots, hotdogs, coffee, shampoo) that the LA Times filled from the above Walmart, Albertsons and Vons rounding out respectively to:

$17.70 - Walmart
$23.74 - Albertsons
$25.41 - Vons

That $1.10-$1.29 price differential on a gallon of milk or $5.04 per bag is so wide in a razor thin margin business as to be unclosable. Vons and Albertsons or any other regional player has a price floor. You have a 5 story basement in which to chase prices down and wait players out. And that you are. And if you get impatient, you can give it away. While internally impacting yourselves silly.

What was the question? Oh yeah, where did "this 'living wage' stuff came from'?

Lee, you wanna know who's gonna gang up on you next? Brands like Levis, GE, Rubbermaid and Kraft. You're building your brand by watering theirs down. They don't like it. Or you. Or your obtuseness.

Target - TGT