January 11, 2007

Is There Something Better Than WalMartization


Ok, so I know I already resigned to the fact that the Walmartization of the world was inevitable. But, I thought of something today while listening to an advertisement for Lumber Liquidators on the radio. All the company does is one thing. They sell on-line. They buy in more bulk than Home Depot, Menards or the other WalMart wannabees of the home improvement stores can do, right? So, perhaps, with items than do not require convenient retail outlets, the single product Monopolization of the retail world is more likely than the current 1-stop-shop winning combination?

3 comments:

Brent said...

No.

I always thought online retailers were doing things the wrong way. Fed-exing an order to a house is inefficient (and expensive). Especially for inexpensive items (like food).

Instead, you should be able to order anything you want from groceries to books to whatever online. Then after work, you drop by a warehouse, swipe your card, your car gets loaded up with everything you wanted.

No wandering up and down every aisle in the grocery store wondering what you need when you order from where you know what you need (at home).

Wal-Mart is on its way towards this, and the online retailers without traditional distribution will suffer. (You can already get free shipping of certain products to select Wal Mart locations--my bet is they will expand this to all products and locations).

Sabai said...

very clever. I can definitely see that happening. so, how bout service companies, like cleaning, carpets, hardwood, plumbers, handymen, etc. Should all of these forces gang up and become a Walmarted Mr. Fix it Service, or should they choose one service and hope to be the best at it?

Brent said...

Is there any real benefit for those services to join together?

It works for my commodity products scenario because a huge chunk of the cost is distribution (and the costs decrease with volume).