Wal-Mart Stores Inc. (WMT) is moving into the last untouched market in their enormous growth-the urban and upscale suburban markets. They are coming at it from two angles-changing their image with urban politicians and anti-Wal-Mart activists and adding upscale goods to draw in a shopping audience that is interested in more than just rock bottom prices.
MSNBC.com reports that Mark Husson, a stock analyst who follows Wal-Mart for HSBC, thinks the fact that consumer tastes gradually change over time makes the product additions a good idea. To remain stagnant, he says, would risk becoming the next Woolworth.
"Target has managed to keep everyday low prices on most things, but also has some upscale items," Husson says, adding that offering ten toasters that all price between $15 and $25, as Wal-Mart has typically done, yields no real variety. Add a couple of more expensive options to the lineup, and traditional Wal-Mart shoppers who aspire to something more won't abandon the store once they get there.
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