Where’d ya get that there bottle of Cristal?
March 23rd, 2006
Did you know that they recently opened a new concept Wal-Mart in Plano, TX (a swanky Dallas suburb)? It’s upscale. Upscale as in fresh sushi and $500 bottles of wine. Upscale as in soft lighting and designer clothing.
I’m confused.
Are they not rich enough already? Or is it just the fact that they want to be the solitary store in every town?
But what I wonder the most is if this is a smart move or a dumb one. And by that I mean, is it smart to stray from what you know, just to try and get even more dollars?
And how will these high-end brands fair if people know that you can also get them at Wal-Mart? (High-end Wal-Mart or not, the name carries a lot of connotations.) I remember the first time I saw North Face products in a bin at Sam’s Club…I never bought the product again.
This will be an interesting one to watch.
Other posts by Spike.
Evan says:
“I remember the first time I saw North Face products in a bin at Sam’s Club…I never bought the product again.”
That sounds really… snobbish and hoity-toity, bordering on assaholic. What were you doing in Sam’s Club anyway? Slumming it?
March 23rd, 2006 at 8:40 amtom sherman says:
Since “fresh sushi” isn’t something you can get in 50% of the podunk grocery stores across the country.
March 23rd, 2006 at 8:52 amCraig says:
I think it will work in certain markets. Obviously, you’re not going to see this new layout in Easley, SC. I also like the fact that they are trying something new. Remember Thomas Edison didn’t invent the light bulb on the first try (Thank God he kept trying). That’s what pilot stores are all about. Find out what works and what doesn’t. This is a perfect opportunity to listen to your customers and find out what they want.
You can also buy Rolex watches and Mont Blanc pens at Sam’s Club. I don’t believe that’s hurting their reputation.
I think it’s going to be interesting.
March 23rd, 2006 at 9:18 amDavid Burn says:
Years ago, Patagonia had the opportunity to sell to department stores. They passed, and by so doing saved their company. Sounds like North Face didn’t heed that lesson.
March 23rd, 2006 at 11:33 amSpike says:
Ouch, Evan. Down, boy! Forgive me if I came across as a snob. I like to feel like I belong to a club (other than Sam’s, where I was a member for many years). I started wearing North Face back in the 80’s when it was made for hard-core outdoor folks, especially the climbers. When I saw it in Sam’s 10 years later, I knew the masses would be wearing it and so it didn’t appeal to me any longer, because it wasn’t a secret any more.
I like to go to specialty stores because it makes me feel like I’m a part of something. When you can get North Face at Sam’s or Mossimo at Target (I wore it back in the day when you could only get it through volleyball/surfer specialty shops), it no longer appeals to me. And there’s nothing wrong with that.
March 23rd, 2006 at 11:40 amBrian says:
I had written a really long reply and lost it, #$#$$@!
To sum it up quickly. Will Wal-Mart sell lots of high end items? Yes. Will those companies lose some face? Yes. When a Rolex is common place it loses it place as a status symbol.
Will Puffy buy a million in Cristal at his next party if Joe next door if buying it at Walmart.
When you buy some of those high end products you also buy into the experience of the purchase. Just like Joe Pesci in that SNL skit where he tries on rings. You go to the jewlers and try on the watch, a few watches. Its an investment, its status, it’s an event. Walmart selling them with some 16 year old kid behind the counter just doesn’t translate. Of course that doesn’t matter to the guy who is paying half because Walmart muscles them into get a crazy volume discount. It matters to people who currently buy Rolex and the other high end buyers.
Seth Godin had a good post about Toms of Maine selling out which related to Spikes comments.
March 23rd, 2006 at 1:11 pmEvan says:
I can’t seem to drive out the pragmatism in my purchasing habits (and there’s nothing wrong with that either). Hence, I have a hard time relating to the clubby mentality of which you speak. I guess that’s why I don’t care that I have a Creative Zen Micro instead of an iPod. Or that I don’t do a secret nod and handshake with “Mac people.” :/
Sorry if I came across overly snarky–I have an unfortunate proclivity for that–but I’m glad you cleared it up.
March 23rd, 2006 at 1:54 pm