Don't count Wal-Mart out

NEW YORK Veteran grocery industry consultant, Joseph Bona president of the retail division of Colemanbrandworx, a strategic branding, design and consultancy agency, issued a warning to food retailers who think that Wal-Mart’s move to limit Supercenter growth means they can relax.

"Don't rest on your laurels, as this is only a temporary pause," advised Bona. "And bear in mind that this is hardly a complete retrenchment; they'll still be opening 190 to 200 U.S. Supercenters this year and approximately 170 annually over the next three fiscal years. When Wal-Mart returns to its full-blown expansion strategy, they will be smarter, meaner, more efficient and ready for the challenge. So, take this opportunity to forge ahead with ideas of your own."

Bona added that supermarkets looking to compete with Wal-Mart’s low prices should turn to differentiation via product offerings, service and the overall store experience as a means of getting shoppers to their stores. “Supermarket shopping will always be a chore, but the experience doesn't have to be boring - one of the vital considerations for any operator looking to hold their own against Wal-Mart."