Wal-Mart Struggles

As Lafayette's sales tax income relies in part on Wal-Mart, here is another in my occasional series of rants against the company that stands to keep millions in excess sales taxes at its new Super location on Hwy 287, pending certain sales benchmarks.

The giant commercial titan is showing more cracks in its amour; that is in its business model with a focus on low prices period. With $345 billion in sales in 2006, wages have stagnated while costs of energy, housing and transportation have risen. Competitors such as Target, Kohl's, CVS, etc. are growing. Businessweek Magazine reports this week on Wal-Mart's Mid Life Crisis as their lead story.

Wal-Mart's flashy entrance into organics has busted, as its customers simply shop price alone and a slight premium is not part of their purchasing motivation.

News recently about Wal-Mart spying on shareholders, suppliers, vendors, critics, even its own Board. We're seeing a shift in this juggernaut that will be fascinating (like a car wreck) to watch.

Bring on the Target and Lowe's to Lafayette; Wal-Mart will not remain the same monster they've been.