7-6 Less amazing than Amazon

Walmart Less amazing than Amazon
from Print edition Feb. 1st 2014

http://www.economist.com/news/business/21595435-worlds-biggest-retailer-stumbling-its-genial-new-boss-needs-prove-he-can-push-through

2/10 7:00-8:00 京都　3名

Walmart has been in a slump in recent years and started to change their strategy.
It is at an "inflection point" and the company got a new executive, Doug McMillon.
They have started open small and medium sized stores and joined on-line market business.
Why are they forced to change their business model? What is the cause of it?

Walmart's sufferings
(1) Their international business is not thriving. It retrenched in China and Brazil.
(2) Walmart's core customers are shoppers on tight budgets, attracted by Walmart's promise of "everyday low prices".  Government raised payroll taxes and cut food stamp benefits last year, they suffered most.
(3) Amazon makes it easier to buy almost anything, supposedly more cheaply than anywhere else that  draws shoppers to Walmart's super centers. Dollar stores are its rival too.

Mr. Macmillan's "inflection"
(1) It will open more smaller stores, mainly midsize grocery stores than super centers.
(2) It starts "Walmart.com" to step up its counterattack on Amazon.
(3) It tries to make the idea of "market ecosystem" possible in its real business.
(4) It tries to change super centers to "destination stores"

We discussed
(1) What is the main causes of sales drop of Walmart?
(2) What kind of strategies Walmart should take?
(3) How do you think the future of retail business in Japan?