FOOD FOR THOUGHT: WHAT IF WAL-MART WENT AWAY?
Wal-Mart is conducting tests involving moving and shrinking the craft department, possibly eliminating fabric altogether, and telling vendors the area is under heavy pressure to improve its performance. Which raises the question: What if, someday, Wal-Mart dropped fabrics and crafts? Some thoughts: 1. Wal-Mart competitors, chains and independents alike, would benefit. Jo-Ann’s and independent craft stores that carry fabric would benefit the most. 2. The size of the industry ($30+ billion according the CHA research) would decline at first. Most of the Wal-Mart sales would move to our stores, but some would be lost. 3. Some Wal-Mart vendors who are also important suppliers to other chains and independents, could end up in bankruptcy. 4. More independents would spring up, especially in specific categories. 5. The pressure to reduce prices would not abate. 6. Because Wal-Mart is so influential among other retailers, non-industry stores such as Target will be less inclined to add and/or exp
