What to Buy at Walmart
Despite (or perhaps because of) the fact that Walmart (WMT) is the nation’s largest retailer, there are plenty of people who wouldn’t be caught dead in one. To these folks, Walmart conjures images of a rapacious juggernaut of stadium-sized stores offering low-quality merchandise, spotty service, and mistreating employees and the environment — while driving small local retailers out of business.
But many of those misgivings are starting to fade, partly as a result of some well-timed improvements to the company’s product line-up and its environmental record. What’s more, there’s nothing like the worst recession in 80 years to nudge “low prices” a little higher on the collective priority list. And while Walmart may not be making its employees rich, the chain handed out very few pink slips in the downturn and remains the country’s largest private employer.
To be sure, there are plenty of reasons to remain wary of the retail behemoth. Whether you are concerned about the threat to a downtown business district, object to the retail culture, or just have a mental picture of the Walmart shopper that you can’t square with your own self image, it may not be for you. But it’s worth keeping in mind that, when it leverages its enormous scale for good, Walmart can make a difference in a hurry. It’s one thing when a boutique sells fair-trade coffee, but when Walmart gets into the game, a lot of sustainable farmers benefit. Here are five product categories where you can comparison shop in good conscience at the nation’s “low-price leader.”
1. Moderately Priced Consumer Electronics
Dying to get the latest hi-definition TV from Vizio or Viore? We thought not. Those low-priced brands are what Walmart has focused on in the past, but recently the retailer has expanded its offerings to include high-def TVs from top makers such as Samsung (SSNLF), Sony (SNE), Philips (PHG), and Sharp (SHCAY). It also now offers digital cameras made by the likes of Nikon and Canon.
Walmart still isn’t the best place to shop for a top-of-the-line television or digital SLR camera. But its focus on bringing in more big brands has made it an attractive option for shoppers seeking consumer electronics in the sub-$1,000 price range. This year, for example, some WalMart stores offered a 50-inch Samsung plasma television for less than $700 during the Thanksgiving holiday weekend.
What Walmart doesn’t have is an army of educated sales people ready to explain all the settings on the back of that SLR or the subtle differences between a high-def TV with a resolution of 1080i versus one with 1080p. But such service has become less important now that 90 percent of consumers turn to the Internet for detailed product reviews, says James Russo, Nielsen’s vice president of global consumer insights.
“Consumers will do their research outside the store,” says Russo. “So if Walmart has the right selection and price point, consumers will go there.
2. Smart Phones
In the past year, Walmart has beefed up its offerings of higher-end cell phones, especially Blackberries. This is good news if you’ve reached the end of your phone contract and are looking to compare new phones and carriers all in one place, since Walmart sells phones and service plans from each of the four largest U.S. carriers: Verizon (VZ), AT&T (T), Sprint (S), and T-Mobile (DT). So if you want to see how T-Mobile’s G1 phone, which uses Google’s Android operating system, matches up against Apple’s iPhone, Walmart is the place for you. You can’t do that at an AT&T store, or even at one of Apple’s fancy boutiques.
3. Coffee
While Walmart has been criticized in the past for being more concerned with price than environmental or labor issues when sourcing its goods, one area where it’s improving its record is with coffee. This year, the company partnered with TransFair USA, an independent certifying agency, to offer fair trade-certified coffee in its Walmart and Sam’s Club stores. The coffee is sustainably grown by farmers who receive a living wage and is thus more expensive than competing coffees — roughly $5.88 for a 10 to 12 ounce bag, compared with less than $5 for supermarket brand Eight O’Clock Coffee. But it tastes better (or at least it should), and by selling fair-trade coffee, Walmart vastly expands the market for such goods.
Carmen K. Iezzi, executive director of the Fair Trade Federation, a North American association for such products, says Walmart’s expansion of fair trade certified items like coffee was promising, although she cautioned that it’s too early to tell how much impact Walmart’s efforts will have. Still, coffee is a good start. “When any major corporation begins to move in the direction of more sustainable practices, that is a positive sign,” says Iezzi.
4. Video Game Bundles
Of course, Walmart’s primary appeal has always been its low prices, but it makes sense for shoppers to do a cost/benefit analysis: Is it worth it to save $10 on a book, when you could be supporting an independent bookseller instead? On the other hand, you can save a lot more money if you’re in the market for video game systems, which Walmart often bundles with starter games. For example, Walmart was recently selling the Xbox 360 Elite gaming system, along with two games, including this season’s blockbuster title, Call of Duty: Modern Warfare 2, for just $259. The game console alone sells for upward of $249 at stores such as Sears, while Call of Duty typically retails for $60. And buying video game consoles and products at Walmart is arguably a guilt-free purchase. After all, Sears (SHLD) isn’t known for standing up against suburban sprawl.
5. Laundry Detergent
When it comes to the environment, Walmart’s suppliers have often fallen far short of best practices. Now the chain is trying to clean up its act by offering more eco-friendly products. One area where it’s done the most is laundry detergent. The company recently switched to selling only concentrated laundry detergent in its U.S. stores — these products use up to 50 percent less packaging and require less fuel to transport than the earlier versions. Once again, scale matters: Walmart has a serious carbon footprint, so cutting laundry detergent containers by half can have a big impact.
Walmart has taken steps to combat phosphates, which pollute the water and lead to an explosion of the algae population that destroys fish habitats and plants. The company already says there are no phosphates in detergent it sells in the U.S., and earlier this year, it announced plans to choose more eco-friendly suppliers for the laundry and dish detergent it sells in its Americas region, cutting phosphates by 70 percent by 2011. The Americas region includes Canada, Mexico, and countries in Central and South America.
And Walmart has unveiled broader initiatives to improve its eco-image. In July, the company began developing a sustainability index that will eventually rank all of its suppliers and products based on their environmental impact. “Walmart is taking some important steps, although they’ve still got a long way to go,” says Honor Schauland, a campaign assistant at the Organic Consumers Association, a Minnesota-based consumer advocacy group.
Walmart didn’t become the world’s largest retailer by accident. Executives in Bentonville, Ark., are well aware that stocking sustainable products was a good way to attract a more affluent consumer. And those consumers like low prices on recognizable brands as much as anyone, especially in the current economy, says Doug Conn, a managing director at Hexagon Securities who focuses on the retail sector.
“They have picked up on trends like organics and natural products, and that has helped get new customers,” says Conn. “But the key theme is that customers are more value-oriented than they have ever been this holiday season, and Walmart is the default place to go for low prices.”
In other words, new customers are coming for the deals. But if they shop the categories mentioned above, they can feel good about being thrifty without worrying that they’ve abandoned their ideals just to save a buck.
While Walmart has recently burnished its reputation among upscale shoppers, there are still some product categories where you’d be better off going elsewhere — either because you’re straying beyond Walmart’s core competency, or to avoid supporting the giant retailer’s bad behavior. Here are three of them.
1. High-End Electronics
Though Walmart has expanded its selection of name-brand electronics, it’s still focused on value-oriented products in the sub-$1,000 price range. And its sales staff tend not to be experts in the finer points of multimedia interface. So if you want to splurge on a top-of-the-line television or digital SLR camera — and get the accompanying level of service and accessories — you’ll want to visit a specialty electronics store. Best Buy (BBY), for example, has a customer support team (the Geek Squad) capable of explaining why, for instance, you may need a television with several HDMI ports.
2. Books
This year, Walmart slashed prices aggressively to establish itself as the low-price leader for best-selling books. The store cut the cost of popular novels such as Stephen King’s Under the Dome by 70 percent to $13.99, sparking a price war with Amazon (AMZN).
The Walmart/Amazon rivalry translates into incredibly low prices for consumers on some of the most popular book titles. But Walmart’s prices come at a cost, say local business advocates. In the long-run, such deep discounts can drive independent booksellers out of business. And without these stores, consumers will have difficulty finding all but the most well-known authors, says Stacy Mitchell, senior researcher with the Institute for Local Self-Reliance, a non-profit that advocates for local businesses.
3. Wood Furniture
Despite Walmart’s increased focus on sustainability, the retailer has a long way to go in the furniture category. In December 2007, an environmental group published a report tracing furniture from Walmart suppliers to wood illegally logged in protected Russian habitats for Siberian tigers and other wildlife. Several months later, Walmart promised to investigate its suppliers and joined the Global Forest & Trade Network, an organization dedicated to eliminating illegal logging. Environmental activists have applauded Walmart’s promise to purge environmentally rotten wood, but Walmart could take until a self-imposed deadline of 2013 to phase out the products. Until then, consumers can’t be certain that Walmart’s wood furniture comes from well-managed forests.
by Catherine Holahan
http://moneywatch.bnet.com/economic-news/article/what-not-to-buy-at-walmart/372460/
2010年9月8日 星期三
4 Things You Should and Shouldn't Buy at Target
by Elaine Pofeldt
September 7, 2010
http://moneywatch.bnet.com/saving-money/article/4-things-not-to-buy-at-target/461471/?tag=content;col1
4 Things Not to Buy at Target
In the battle for public opinion, Target has shellacked its larger competitor, Walmart. Whether it's environmentalists attacking the very concept of big-box retail or workers' rights advocates lambasting the chain's treatment of employees, Walmart has become the poster boy for the excesses of capitalism. Target, meanwhile, has built a reputation for cheap chic, pairing with Liberty of London and Michael Graves to churn out high-design at low prices. Walmart gets blamed for putting mom and pop stores out of business, while Target recently opened its first store in Manhattan, a market Walmart has yet to crack.
Recently, however, Target has looked vulnerable, suffering more in the economic downturn than Walmart did, and committing a rare public relations gaffe by making a political contribution that angered gay groups.
So what about the merchandise? On its carefully edited shelves, Target offers many good products at competitive prices, but it also sells products you should avoid, either because you'll get a better selection or price at another store, or because there are more environmentally sound options. Here are four items not to buy at Target.
1. Furniture
Target's design edge in categories like clothing and housewares, where Target has exclusive deals with fashion stars such as Zac Posen, clearly doesn't extend to home furniture. "You can get comparable quality and cheaper stuff from Ikea, and Ikea's merchandise is a bit more stylish," says Kathryn Finney of The Budget Fashionista site. Finney says that, in particular, Ikea's bookshelves, chairs, and kitchen tables tend to offer better value than those at Target.
2. Movies and Music
"They can't really beat Amazon or Walmart" when it comes to prices on movies, music, and books, says James McQuivey, a media technology analyst at Forrester Research. Katy Perry's Teenage Dream CD, for example, sells for $13.99 at Target, vs. $9.99 at Amazon and $9.00 at Walmart, while the Blu-ray version of Date Night costs $29.99 at Target, vs. $24.96 at Walmart and $28.99 at Amazon.com.
3. Exercise Equipment
Target's clothes may be fashionable, but if you want to look great in them, buy your exercise equipment somewhere else. Target's offerings in this category tend toward the $199 "As Seen on TV" Ab Circle Pro and the $100 Tony Little "Gazelle Edge" fitness system. You're generally better off going to a place like The Sports Authority for higher-end exercise equipment. Or join a gym and hire a pro.
4. Shower Curtains, Some Toys, and Other Products with PVC
Following a national campaign by the Center for Health, Environment and Justice (CHEJ) and other environmental groups, Target agreed in 2007 to reduce the use of polyvinyl chloride (PVC) plastic in its products and packaging. PVC often contains lead and pthalates, which have been linked to reproductive problems in humans and release carcinogens when incinerated. At the time, Target lagged behind Walmart and Sears (Nasdaq: SHLD - News) in removing products containing PVC, says Mike Schade, CHEJ's PVC campaign coordinator. Although Target is now doing just as well as these rivals in removing PVC-containing products, it hasn't gotten rid of all of them, according to Schade.
Of particular concern are toys not sold under Target's private-label brand; Schade says it can be a challenge for retailers to control the materials that its suppliers use. (Toys sold under Target's brand should generally be PVC-free, according to Schade.) And read the labels on plastic shower curtains: Target has removed most, but not all, that contain PVC from its shelves. (Products that contain the recycling symbol with the number "3" in the middle mean they contain PVC.)
For its part, Target says it has eliminated or switched to safer forms of PVC in product categories covered by child safety legislation.
4 Things to Buy at Target
Target (NYSE: TGT - News) has long cultivated an image as a great place to buy "cheap chic" clothes and housewares designed by the likes of Zac Posen, Jean Paul Gaultier, and Michael Graves. Of course the nation's second-largest discount chain also offers the mundane staples of consumer retail -- and over the past few years, it has expanded its offerings and now stocks exclusive products in a broad range of categories. Most recently, Target added fresh groceries to the line-up.
While Target will seldom beat Walmart (NYSE: WMT - News) on price alone, its prices are still competitive; and starting this fall, holders of its store credit card will get a 5 percent discount on all purchases. Here are four categories -- other than clothes and tea kettles -- where it makes particular sense to shop at the store whose fans use a French accent to emphasize their affection for "Tar-zhay."
1. The Kindle
If you're tempted to buy the popular e-book reader from Amazon (Nasdaq: AMZN - News), but want to try it out first and perhaps compare it to Barnes & Noble's Nook (NYSE: BKS - News), Target is the place to go: It's the only national brick-and-mortar retailer to carry it. The brand new Kindle 3, which is smaller and lighter than previous models, will sell for $189 at Target, the same price as at Amazon.com. "Look someone up in the store who knows how to work the device, so you can get a feel for it," suggests James McQuivey, a media technology research analyst at Forrester Research. If you've never seen someone use it, it can be a little bit tricky to figure out on your own.
2. Green Cleaning Products
When it comes to the burgeoning category of environmentally friendly cleaning and washing products, Target is tough to beat. Target was the first national retailer to carry the Method line of cleaners, which have built a cult following for their attractive packaging and all-natural ingredients, and it currently stocks more Method products (about 70) than any other big-box store. In addition, if you like niche brands of natural cleaning products such as J.R. Watkins Apothecary, Mrs. Meyer's, and Seventh Generation, you can get them at Target too -- as well as hard-to-find, green versions of mainstream products such as Tide Coldwater Free, which works with high-efficiency washing machines and is made without dyes and perfumes. "They are definitely there first before Walmart on these types of products," says Sapna Shah, a principal at research firm Retail Eye Partners.
3. Groceries
As part of its effort to bounce back from the recession, Target is rolling out an expanded grocery section, going head to head with Walmart and Kmart, which have already beefed up their fresh-food sections. Target's new PFresh section, which sells a decent assortment of perishables such as meat, fruit, fresh produce, and baked goods, finally makes it possible to pick up the fixings for a complete meal while you are at Target shopping for other things. "It has about 70 percent of the things you would find in a full grocery store, and prices are going to be 10 to 20 percent less than at a typical grocery," says Colin McGranahan, an analyst with Bernstein Research.
In addition, kids' snacks such as granola bars and juices can be significantly cheaper at Target than at other big retailers and drugstores, and you can often save more money by registering on Target's site to have coupons delivered to your smart phone, according to Stephanie Nelson, founder of CouponMom.com.
4. Cosmetics
Target's selection of cosmetics and bath and body products has traditionally lagged behind CVS (NYSE: CVS - News) and Walgreen (NYSE: WAG - News), says Jim Joseph, president of Lippe Taylor, a brand communications firm in New York City that has worked for clients whose products sell at Target. But recently the retailer has extended its cheap chic strategy to carry more designer cosmetics with quality and selections comparable to more expensive department store brands. Recent offerings in this vein include lines from Napoleon Perdis, Petra Strand, and Jemma Kidd. Target is also a good source for hard-to-find makeup brands, such as the U.K.'s Boots beauty products and Iman Cosmetics, a makeup line for women of color, says Kathryn Finney, founder of The Budget Fashionista.
September 7, 2010
http://moneywatch.bnet.com/saving-money/article/4-things-not-to-buy-at-target/461471/?tag=content;col1
4 Things Not to Buy at Target
In the battle for public opinion, Target has shellacked its larger competitor, Walmart. Whether it's environmentalists attacking the very concept of big-box retail or workers' rights advocates lambasting the chain's treatment of employees, Walmart has become the poster boy for the excesses of capitalism. Target, meanwhile, has built a reputation for cheap chic, pairing with Liberty of London and Michael Graves to churn out high-design at low prices. Walmart gets blamed for putting mom and pop stores out of business, while Target recently opened its first store in Manhattan, a market Walmart has yet to crack.
Recently, however, Target has looked vulnerable, suffering more in the economic downturn than Walmart did, and committing a rare public relations gaffe by making a political contribution that angered gay groups.
So what about the merchandise? On its carefully edited shelves, Target offers many good products at competitive prices, but it also sells products you should avoid, either because you'll get a better selection or price at another store, or because there are more environmentally sound options. Here are four items not to buy at Target.
1. Furniture
Target's design edge in categories like clothing and housewares, where Target has exclusive deals with fashion stars such as Zac Posen, clearly doesn't extend to home furniture. "You can get comparable quality and cheaper stuff from Ikea, and Ikea's merchandise is a bit more stylish," says Kathryn Finney of The Budget Fashionista site. Finney says that, in particular, Ikea's bookshelves, chairs, and kitchen tables tend to offer better value than those at Target.
2. Movies and Music
"They can't really beat Amazon or Walmart" when it comes to prices on movies, music, and books, says James McQuivey, a media technology analyst at Forrester Research. Katy Perry's Teenage Dream CD, for example, sells for $13.99 at Target, vs. $9.99 at Amazon and $9.00 at Walmart, while the Blu-ray version of Date Night costs $29.99 at Target, vs. $24.96 at Walmart and $28.99 at Amazon.com.
3. Exercise Equipment
Target's clothes may be fashionable, but if you want to look great in them, buy your exercise equipment somewhere else. Target's offerings in this category tend toward the $199 "As Seen on TV" Ab Circle Pro and the $100 Tony Little "Gazelle Edge" fitness system. You're generally better off going to a place like The Sports Authority for higher-end exercise equipment. Or join a gym and hire a pro.
4. Shower Curtains, Some Toys, and Other Products with PVC
Following a national campaign by the Center for Health, Environment and Justice (CHEJ) and other environmental groups, Target agreed in 2007 to reduce the use of polyvinyl chloride (PVC) plastic in its products and packaging. PVC often contains lead and pthalates, which have been linked to reproductive problems in humans and release carcinogens when incinerated. At the time, Target lagged behind Walmart and Sears (Nasdaq: SHLD - News) in removing products containing PVC, says Mike Schade, CHEJ's PVC campaign coordinator. Although Target is now doing just as well as these rivals in removing PVC-containing products, it hasn't gotten rid of all of them, according to Schade.
Of particular concern are toys not sold under Target's private-label brand; Schade says it can be a challenge for retailers to control the materials that its suppliers use. (Toys sold under Target's brand should generally be PVC-free, according to Schade.) And read the labels on plastic shower curtains: Target has removed most, but not all, that contain PVC from its shelves. (Products that contain the recycling symbol with the number "3" in the middle mean they contain PVC.)
For its part, Target says it has eliminated or switched to safer forms of PVC in product categories covered by child safety legislation.
4 Things to Buy at Target
Target (NYSE: TGT - News) has long cultivated an image as a great place to buy "cheap chic" clothes and housewares designed by the likes of Zac Posen, Jean Paul Gaultier, and Michael Graves. Of course the nation's second-largest discount chain also offers the mundane staples of consumer retail -- and over the past few years, it has expanded its offerings and now stocks exclusive products in a broad range of categories. Most recently, Target added fresh groceries to the line-up.
While Target will seldom beat Walmart (NYSE: WMT - News) on price alone, its prices are still competitive; and starting this fall, holders of its store credit card will get a 5 percent discount on all purchases. Here are four categories -- other than clothes and tea kettles -- where it makes particular sense to shop at the store whose fans use a French accent to emphasize their affection for "Tar-zhay."
1. The Kindle
If you're tempted to buy the popular e-book reader from Amazon (Nasdaq: AMZN - News), but want to try it out first and perhaps compare it to Barnes & Noble's Nook (NYSE: BKS - News), Target is the place to go: It's the only national brick-and-mortar retailer to carry it. The brand new Kindle 3, which is smaller and lighter than previous models, will sell for $189 at Target, the same price as at Amazon.com. "Look someone up in the store who knows how to work the device, so you can get a feel for it," suggests James McQuivey, a media technology research analyst at Forrester Research. If you've never seen someone use it, it can be a little bit tricky to figure out on your own.
2. Green Cleaning Products
When it comes to the burgeoning category of environmentally friendly cleaning and washing products, Target is tough to beat. Target was the first national retailer to carry the Method line of cleaners, which have built a cult following for their attractive packaging and all-natural ingredients, and it currently stocks more Method products (about 70) than any other big-box store. In addition, if you like niche brands of natural cleaning products such as J.R. Watkins Apothecary, Mrs. Meyer's, and Seventh Generation, you can get them at Target too -- as well as hard-to-find, green versions of mainstream products such as Tide Coldwater Free, which works with high-efficiency washing machines and is made without dyes and perfumes. "They are definitely there first before Walmart on these types of products," says Sapna Shah, a principal at research firm Retail Eye Partners.
3. Groceries
As part of its effort to bounce back from the recession, Target is rolling out an expanded grocery section, going head to head with Walmart and Kmart, which have already beefed up their fresh-food sections. Target's new PFresh section, which sells a decent assortment of perishables such as meat, fruit, fresh produce, and baked goods, finally makes it possible to pick up the fixings for a complete meal while you are at Target shopping for other things. "It has about 70 percent of the things you would find in a full grocery store, and prices are going to be 10 to 20 percent less than at a typical grocery," says Colin McGranahan, an analyst with Bernstein Research.
In addition, kids' snacks such as granola bars and juices can be significantly cheaper at Target than at other big retailers and drugstores, and you can often save more money by registering on Target's site to have coupons delivered to your smart phone, according to Stephanie Nelson, founder of CouponMom.com.
4. Cosmetics
Target's selection of cosmetics and bath and body products has traditionally lagged behind CVS (NYSE: CVS - News) and Walgreen (NYSE: WAG - News), says Jim Joseph, president of Lippe Taylor, a brand communications firm in New York City that has worked for clients whose products sell at Target. But recently the retailer has extended its cheap chic strategy to carry more designer cosmetics with quality and selections comparable to more expensive department store brands. Recent offerings in this vein include lines from Napoleon Perdis, Petra Strand, and Jemma Kidd. Target is also a good source for hard-to-find makeup brands, such as the U.K.'s Boots beauty products and Iman Cosmetics, a makeup line for women of color, says Kathryn Finney, founder of The Budget Fashionista.
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