Post by arfanho7 on Feb 25, 2024 3:24:01 GMT -3
People don t know how or don t have the time to cook so they are eating pre prepared meals more often. There is also the fact that if you go to a CVS or a Home Depot there is a panoply of products that were once the sole domain of supermarkets. Twenty five years ago supermarkets had more than percent of the consumables market share today that number is in the low s. Now it appears that everybody sells consumables including the or so dollar stores in the United States.
The book makes the case that even Walmart is under threat by the changing environment. Lal Look at the business model. Walmart catapulted into a billion plus company by luring customers Ukraine Mobile Number List into stores with groceries at very low margins reaping the benefits of additional trips which generated increased sales of higher margin general merchandise items. But if you look at what has happened to that model it is challenged on all fronts. On the general merchandise side Walmart has competition from the Amazons of the world. So their ability to make money with general merchandise has become compromised because ecommerce forces prices down.
Amazon s cost structure and their formula for deploying assets is superior to Walmart s. being generated by lower food prices is being threatened by much leaner and more competitive grocery stores. The icing on the cake is that the lower income customer has another choice in the form of dollar stores. So on all counts you have a model that is under significant pressure. Alvarez What s fascinating is that the model has worked for Walmart for a very long time and looked like a juggernaut that nobody believed could be stopped.
The book makes the case that even Walmart is under threat by the changing environment. Lal Look at the business model. Walmart catapulted into a billion plus company by luring customers Ukraine Mobile Number List into stores with groceries at very low margins reaping the benefits of additional trips which generated increased sales of higher margin general merchandise items. But if you look at what has happened to that model it is challenged on all fronts. On the general merchandise side Walmart has competition from the Amazons of the world. So their ability to make money with general merchandise has become compromised because ecommerce forces prices down.
Amazon s cost structure and their formula for deploying assets is superior to Walmart s. being generated by lower food prices is being threatened by much leaner and more competitive grocery stores. The icing on the cake is that the lower income customer has another choice in the form of dollar stores. So on all counts you have a model that is under significant pressure. Alvarez What s fascinating is that the model has worked for Walmart for a very long time and looked like a juggernaut that nobody believed could be stopped.