The framework of the Wal-Mart company is one that runs a chain of large, discount department stores. It is the world's largest public corporation by revenue. Wal-Mart buyers have traditionally been attracted to the super store for the variety of goods as well as low prices. In 2005 owner Douglas Degan debated expanding Wal-Mart’s target market by offering organic food items at Wal-Mart stores. In analysis of the Wal-Mart company, their current state, and the wants of their customers it is obvious to see the potential disadvantages of such a decision financially but along with the idea comes an image issue that must be addressed.
Wal-Mart customers seek low prices for goods that they would purchase more for at competing supermarkets. They seek a small discount for common items and are typically not interested in the market of organic food. In order for Wal-Mart to sell organic foods it is obvious that they would need to attract buyers who are already interested in organic foods, and who have purchases organic foods before, Whole Foods Market had rose 900% in a decade. The organic foods industry can be seen as a trend that has gained recent popularity and is obvious to see why Wal-Mart would be interesting in capitalizing on this popularity, but the wants of the Wal-Mart company do not match the wants of organic food customers.
The average Wal-Mart costumer is not interested in acquiring organic foods at a higher price, in most cases the customer has chosen Wal-Mart for lower prices primarily. Organic foods are much more expensive and are not in correlation with the good customers of Wal-Mart purchase. Organic food purchase can be seen as an experience. This is something that Wal-Mart cannot offer in there store. Whole Foods Market reaches many customers by the appearance of their stores and culture implications which cannot be matched by Wal-Mart’s
In a recent effort Wal-Mart has made a conscious effort to change their public appearance and the level of...