retail news in context, analysis with attitude

The Lakeland Ledger reports that Winn-Dixie continues to take it on the chin as Wal-Mart expands its supercenter and Neighborhood Market fleet across the south and southeast United States.

The problem: once Wal-Mart started to stake out Winn-Dixie's traditional low price leadership, the company tried unsuccessfully to emulate the higher end Publix approach.

The results: in the last five years, Winn-Dixie's sales have dropped by $2 billion, to $12 billion. The company has closed or sold almost 200 stores. Same store sales have been in negative numbers for most of the last two years. And management is refusing to give analysts any guidance on what the current quarter's earnings might be.
KC's View:
The strategy now seems to be to continue lowering prices and stressing promotions.

But the problem is that Winn-Dixie isn't offering consumers a compelling reason to walk through its doors.

No wonder the company is on the short list of companies likely to be acquired. The issue would seem to be who would want it.