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Article: Wal-Mart discounts put other retailers on defensive; opportunities remain in serving niches the giant can't or won't reach.(SHOPPING)(Brief article)
- Article from:
- Los Angeles Business Journal
- Article date:
- December 4, 2006
- Author:
CopyrightCOPYRIGHT 2006 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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It's the holiday season, and while consumers are worrying about what to get finicky aunt Margaret, retailers are worrying about Wal-Mart.
No one can compete with the retail titan's capacity for price-cutting over the long haul, and Wal-Mart Stores Inc. is aggressively taking advantage of its edge with slashed prices right out of the holiday starting gate this year.
"When you've got an 800-pound gorilla in the room everybody takes their cues from him," said Richard Giss, a partner at Deloitte & Touche LLP. "Most small stores don't compete, but they're impacted because Wal-Mart sets the stage for the expectations of the consumer."
Wal-Mart opted ...