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MarketWatch has a story about how Walmart - “working hard to broaden its appeal to compete with e-commerce juggernaut Amazon” by acquiring upscale brands (like Moosejaw) and establishing new strategic alliances (with the likes of Lord & Taylor) - also is “facing a competitive threat from dollar-store retailers like Dollar General Corp. that are beefing up their value proposition” to appeal to value-driven shoppers to which Walmart traditionally has appealed.

The story says that it isn’t that Walmart is abandoning price-oriented shoppers. MarketWatch writes that “a retailer’s value proposition isn’t only about low price, but can also include factors like convenience and assortment.” In the end, though, experts say that Walmart has to be careful to consistently reinforce its low-price image if it wants to avoid market share loss to the competition.
KC's View:
It is a tough tightrope to walk, and I do think that Walmart has to be careful. I recently said that I think that Amazon’s advantage may be that Jeff Bezos is Jeff Bezos, while Marc Lore (who is running all Walmart’s US e-commerce businesses) just wants to be Jeff Bezos. Walmart has to be careful not to be swallowed up by this ambition.