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Would You Buy a $500 Bottle of Wine at Wal-Mart?

WalmartjpgWal-Mart is trying to be Costco. It is targeting upscale shoppers in a new, experimental store in Plano, Texas with an expanded selection of high-end electronics, more fine jewelry, hundreds of types of wine ranging up to $500 a bottle, and even a sushi bar.

Wal-Mart says it won’t duplicate this format anywhere else. But if plasma TVs, microbrewery beer and fancy balsamic vinegar sell in Plano, those items could be added to stores in other affluent communities. (full article here).

No wonder Wal-Mart is desparate: since the beginning of 2005 it’s stock dropped 6%, while Costco climbed 16.2%.  “Costco’s stock is starting to get pricey, but I think it definitely deserves a premium over Wal-Mart since it’s one of the few retailers out there that competes head-on with them and, quite frankly, beats the pants off them,” says Morningstar analyst Anthony Chukumba. “They’re incredible merchants. Their customer service is pretty much the best out there in all of retail. They treat their employees better. They pay them more. Their benefits are better, and the company still has room to grow both at home and abroad.”  (via  “Wake Up Walmart”)

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