Eugene Bickley

Wal-Mart is known as the low-price, bare knuckle retail mega corporation. Wal-Mart is now trying to attract a new type of customer, the more affluent shopper. Extensive research has shown that there are three types of people that shop at Wal-Mart. People with low incomes who are obsessed with name brands like Kitchen-Aid, wealthy shoppers who love deals, and people who like low prices and cannot afford much more. The new research now gives Wal-Mart’s executives information to help them understand not just how people shop at its stores, but also why they shop the way they do. The changes might seem subtle, but for a company as large as Wal-Mart, whose sales exceeds those of four of its competitors combined, the stakes are very high for the merchandising and marketing executives that are heading the new marketing strategy.

The world’s largest retailer, seeking to change its image due to backlash from employees, small businesses, environmentalists, and others is now trying to project itself with a new identity. The executives of the company have made a decision to move into the more upscale urban market to attract a consumer with more disposable income. Wal-Mart is leaving its suburban and rural base and moving into the cities. It is reaching out to a clientele that wants better goods.

Wal-Mart is upgrading its merchandise to include expensive $500 wines, organic foods, $2000 plasma televisions, and a new “Metro 7” line of designer fashions. It ran an 8-page ad in Vogue magazine. It opened a new store in Plano, Texas, a well-to-do corporate town with a two tone brick building instead of its usual concrete-block façade. The store has wide aisles, uncluttered shelves with cherry finish, halogen lights, and discrete fitting rooms. The McDonald’s restaurant has been replaced with an espresso shop and sushi bar with free wifi. Gone are the blue vests. The new employee uniform is khaki pants and blue polo shirts. Wal-Mart is doing a makeover in 1,800 of its stores.

This facelift is geared to attract the affluent customer. With the new client base Wal-Mart could continue to grow in this stagnant economy. This marketing plan seeks to attract customers from retailers such as Sears, Target and other upscale retailers. Going after a new clientele is a brilliant idea.

Will this new clientele shop at a retailer with an already tarnished reputation?

Graphic Credit:
Animationfactory.com