One day recently, Wal-Mart decided to close one of its "supercenters" in the Dallas suburb of Garland. One day the 250,000 square feet building that hovered over a big parking lot on Garland Road, just a few blocks from the LBJ Freeway, was there, the next day the only hint it had been a Wal-Mart was they had not painted over the Wal-Mart blue on the façade.
To the naked eye, the store looked viable and profitable. It had been well-stocked and seemed to have many shoppers through the day. Today a newly-painted For Sale Sign spawns rumors that looks were deceiving.
Apparently store closures like this usually come with no advance notice to the public, not even to the employees. And there's rarely a definitive explanation.
I did find this statement in one of the company's recent annual reports.
"The decision (to close stores) is related to Wal-Mart's recently announced plans to moderate growth of U.S. supercenters as part of leveraging capital resources through a strategy designed to improve returns and sales within U.S. stores."
This, even though in this same report, future expansion for the company showed they had budgeted for a net gain of about 265 of the huge stores that year.
Nevertheless, almost immediately they did just the opposite - the slowed down building new stores as well as began closing a number of those already on the ground.
Stockholders and analysts shared shock while the New York Times said the company had reached a turning point.
No longer satisfied with its own definition of what a Wal-Mart store is, company officials are beginning the same journey that Sears-Roebuck started down years ago - investing in businesses and ideas that do not fit its model.
Today Sears is drowning in debt as the result of its prior and current management's idiocy. It'll be interesting to see if the same thing happens to Wal-Mart over time.
Copyright 2008 - William S. Cherry
Hmm. Very interesting. Sam Walton (and his family) began making the big bucks when he cut out the need for only 1 middleman in the distribution chain of getting products to customers. The Internet is cutting out even more people in the distribution chain so that consumers can go directly to product manufacturer A to get product A sent directly to them. But, since the Internet is still in its infancy, the Walton clan will still be seeing the big bucks until someone gets a good handle on how to get people to be loyal consumers rather than being fickle and searching within seconds to find the cheapest from various sites... Cool post.
History does seem to repeat itself. Mega Brokers like Wal-Mart are experiencing the same thing by scaling back & closie their title depts. Insurance depts. And in-house mortgage depts.
Wal Mart's real growth is overseas...They have a strangle hold on US retail so the focus must shift.
Great post Bill. I just recently wrote a Bolg here on how a Wal-Mart in Alpharetta Georgia is no longer 24 hours. I know the impact is from the high price of gasoline has cut too deep into the pockets of consumers.
This shows that no business is shielded from the current market downturn.
Walmarts been trying to get a store in Ventura, CA for awhile now. The even have the lease on an abanonded K-mart but the city is inflexible in allowing any changes and the anti-Walmart sentiment is high. Maybe this economy will make them go away and the problem will be solved.
This is very interesting... they have stopped plans for one store in our area and are downsizing another!
Can't say I'm sorry.... the whole WalMart phenomenom and philosophy...creep me out!
When Wal-Mart is closing stores, that isn't a positive indicator of the state of our economy.
Thank you for this information. Our Walmart over in N.B. always appears to be very busy; even difficult to find parking, sure hope they don't close in New Braunfels. We only have one small H.E.B. and they could not handle the customer base if Walmart were to close.
I'll have to check this out and keep and eye on Walmart.
The Wal-Mart that closed on Garland Road was a massive 220,00 square foot prototype Hypermart when it opened in the 80's. It was too big and the timing for this type of store was doomed with the recession in the 80's. They converted it to a Wal-Mart Supercenter, but again, the property was too large and costly to operate so they ended up closing the store altogether. Also, it wasn't in an ideal location. It was surrounded by industrial businesses.
Wal-Mart continues to build new stores in the Dallas area. There is one going up on Forest Lane between Abrams Road and Greenville Avenue.
I'm not a fan of Wal-Mart stores, and seem to leave aggravated each time I've shopped there. They have 20+ check-out lanes, but only 3 or 4 seem to be open during peek shopping times. I don't like waiting in long lines. Arghhhh!
To all of you, thanks for your comments and insight.
Miss Nancy, I had forgotten about that idiotic concept. It showed up at least 25 years ago, and it didn't work anywhere I know of. Why did anyone think it would? Thanks for reminding me about it.
That's the way of business nowadays. Now you see them now you dont.
Robert, Boy is that true.
I think it's interesting that Sears may disassemble into its smaller parts in an effort to stay afloat.
Mr Bill: Ya know, I was not aware that you had even applied for a Visa to enter the city of Garland. That's a brave step you have taken, my friend. Be careful... <grin>
Bill, Thanks for the information but it comes as no surprise to most. There seems to be a strong habit of over engineering almost everything including big business. Even look at the computer programs they just keep adding junk to operating systems and there are 6 ways to do the same thing. I wish they would clean up some even Vista.
Interesting Post. I think I'm the only person who doesn't shop at Wal-Mart. I can't stand shopping there. I'm a Super Target shopper!!
I love all of your comments about Wal-Mart. And I'm surprised that Karen Anne Stone seems to know me so well.
We had a wonderful chain of stores around here some 40 years go called Gibson's. They were Wal-Marts Done Well.
I recently learned that Mr. Walton worked for and studied Gibson's, then took their business model and not only started his Wal-Marts but eventualy put Gibson's out of business.
Wal-Mart management would benefit by revisiting the past in order to save their future.
Bill: The only way I know you is from your writings... which are top notch. But... even with limited knowledge... I can still be an admirer. (pulling up pants legs) Take care...
Linda: I cannot stand to shop at Wal Mart either. It's Super Target all the way.
Volume retail merchandising seems to have suffered dramatically, and historically, throughout the years and in times of recession, Dr. Cherry. F.W. Woolworth's, Zayre, Woolco, Bailey, Banks and Biddle, Eastern Airlines. So many good people are suffering because of these tragic blows to the economy. I've seen friends, neighbors and colleagues ruined by these failures, and rebuilding their lives takes so long. It's terribly painful for their families. Our countries life support, the fuel we need to run commerce and industry, is being strangled and pirated, the only natural consequence is the decimation, the destruction, the devastation of commerce. If John Kenneth Galbraith, Harvard's professor of economics, of blessed memory, were alive, I know that he would agree with me. Hope this day finds you in good health, sir.
Those of you who are unfamiliar with AR David Saks who posted a comment above, would enjoy going to his AR home page, reading about him, and listening to him play the piano. His comments about retail (above) are worthy of thought and pondering a solution.
Miss Karen, thanks for your kind note.
Bill, Mr Gibson and Sam were good friends and the Gibson fall was due more to legal problems from a large law suite than from Walton. Sam visited Mr. Gibson at one of his stores in Abilene, Txand Mr. Gibson was happy to give Sam some direction. I knew Mr. Gibson and visited with him in Mineral Wells at his store there, a really nice man. The Walton Ranch in Palo Pinto County was just a short way from our place south of M-Wells.
Well, there is a line in the Little Abner play - "What is good for General Bullmouse is good for the USA". So people can equate General Bullmouse to the WALMART.
In the play the General did not windup with what he wanted either.
Bob, thanks for the Lil Abner analogy. That's a good one!
Don, I have a dear friend who's lived in Mineral Wells for most of her life, Mary Bonner Creighton. I'm sure you know her. Thanks for enlightening us on the Gibson-Walton connection/story.
Thanks, everyone, for these enlightening posts. For many of us it's kind of a love/hate relationship, isn't it? Most of the time I avoid it, because of the lines at check-out, etc., but once in a while I find myself there, and as I am leaving, I'm telling myself not to go again! I hate it when they bulldoze acres of land, and then leave a vacant, abandoned building to go somewhere down the road and build another one. There is something wrong with this!
Miss Linda, you and I are on the same wave length, and I think that leaving abandoned buildings all over everywhere is what prompted me to write this post.
Thanks.
Thank you, Dr. Cherry. I'm very honored by your kindness. It's a great privilege to know you.
It will be interesting to see if they can dig themselves out of this mess.
Bill, Yes, I do know Mary Creighton and the rest of the Creighton family. I lived there for most of my life before moving to Kerrville in 2004. We owned a number of business in M-Wells and still consider it our home town.
Here they close one store and then they open up another one right down the road