Times have been tough and many consumers that wouldn't have stepped foot in a Wal-Mart a few years ago are doing it today. The problem is, some of these same well-heeled yet frugal shoppers admit to being somewhat embarrassed by their trips to the retailer's stores.
A real estate broker from Scotch Plains, NJ, who asked not to be identified, told RetailWire, "I really hate shopping in the store because the lines are always too long at the checkout but the prices are so low on groceries. In the past we would normally shop at Wegmans or King's for just about everything but it's hard to justify spending twice as much on ice cream at one of those stores when we can come here."
The broker added, "Of course, when the market picks up again, we're probably not going to be so concerned with saving $10 or $20 by shopping here when there are so many more choices at Wegmans."
Wal-Mart has done a great job of attracting more affluent consumers as the economy turned downward. According the Eduardo Castro-Wight, vice chairman of Wal-Mart Stores, Inc., 17 percent of the company's store traffic comes from new households. These new shoppers are spending 40 percent more than the average Wal-Mart customer. Fifty-five percent have annual incomes over $55,000.
"Wal-Mart has proven itself a winner in this tough economy. Shoppers have really resonated with the retailer's 'Save money, live better' brand promise," Jennifer Halterman, senior consultant at Retail Forward, told The Dallas Morning News. "Wal-Mart also is positioning itself to retain shoppers post-economic turnaround with its newly remodeled stores, enhanced portfolio of brands and overall improved shopping experience."
Some long-time shoppers are not altogether happy with the changes Wal-Mart has made.
"It looks nice, but they don't have as much stuff," Gail Thompson of Plano told the Morning News.
Discussion Questions: Will Wal-Mart Stores be able to hold on to its new, more affluent shoppers when the economy rebounds? Does the company risk losing its core customer by making changes that attract shoppers with higher incomes?