My take on it...
Fading.
Walmart grew to prosperity under Sam Walton's reign, but since he's passed, it's different. The WM near us is not a pleasure to go into -- the aisles are cluttered, the service is slow, the employees are unmotivated (to say the least), and shopping just isn't fun. It feels like a K-Mart did about 5-10 years ago... and based on what I see here, I expect Walmart to follow the same path and be eclipsed by something else.
Folks argue against WM, saying that you shouldn't shop with a company that's stealing business from local family-owned businesses. As much as it's painful to say, that's a load of hooey. If you run that family-owned business, you need to figure out why people should buy from you -- and it's not because you're local, or because they should help put your family through school. You need to find a niche to fill, with something like service (beatin' WM already) or product selection (for the things no one else carries) in order to win. Otherwise, you're a dinosaur who's dug your own grave.
Now, don't think I'm pro-WM, 'cause I'm not. I am pro-business, and more importantly, pro-consumer. Give the consumer a reason to buy at your store, and they will. Walmart gives people low prices as a reason to buy there. For folks who don't have a lot of money, that's a powerful incentive. Beat 'em on another front.
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Give 'em a hug one more time. It might be the last.
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