What's out: Nordstrom. What's in: Wal-Mart.
Filed under: Bargains, Budgets, Extracurriculars, Shopping
Last month, I walked into a Wal-Mart store for the first time in my life. I'm from San Francisco, a place proud for its efforts to keep big-box stores out of city limits (Target is acceptable, although the nearest one is in South San Francisco, officially a different city). I have always tried to support my local Mom and Pop stores but the last time I was pricing home-improvement supplies at Progress Hardware down the street, something just snapped.
I closed my pocketbook, swallowed my pride and drove to the nearest Wal-Mart (still a 20-mile drive across the bridge to the more-inclusive East Bay). The stark florescent lighting and messy aisles weren't a shocker. The suprise for me was that I saved 40% on hardware and also bought groceries, a PlayStation game and, gasp, a shirt. I never thought I'd see the day when I bought clothes at a Wal-Mart (Target with its cute Issac Mizrahi stuff was a different story). Then again, I thought pigs would be flying when major Wall Street banks, Detroit carmakers and my state's government were on the brink of bankruptcy in less than a year. Sorry, Progress Hardware. I have to regress for now and buy my hammer, nails and basic necessities at the cheapest discounter around.
And I'm not the only one. More people are foregoing full-price fashion and organic food to make Wal-Mart their one-stop shop. The world's largest retailer, which announced its quarterly earnings on Friday, is one of the few retailers in America that made a profit during the past three months. What's more, its stock has risen 21 percent in the past year, while rival Target has seen its shares fall by 40 percent. Isn't Tar-jay a big-box retailer too? Yes, but once-fervent customers like me see it primarily as a place for cheap-chic non-essentials, and I don't need more Mizrahi right now. Target reports its quarterly earnings on Monday, and analysts aren't expecting great results. Meanwhile, Wal-Mart is touting its low-priced food and medicine, holding early holiday sales and announced that it will slash prices every week till Christmas. While I'll never be a fan of its florescent lighting or its treatment of employees, I'm a sucker for the lowest prices. And if that means driving 20 miles over the bridge to find them right now, so be it.
I must admit I miss my favorite shopping therapy cure: Nordstrom's fab shoe department. Ah, the hours I spent trying on pumps and platforms there! But Nordstrom and other department stores are, for now, as irrelevant as print newspapers. The thought of paying full-price for clothes just seems so 2007. I don't mean to pick on Nordstrom in particular -- its emphasis on customer service made me feel like a queen -- but it too announced earnings on Friday, shocking Wall Street by announcing third-quarter profits fell 51 percent (but its outlet chain Nordstrom Rack can still be considered hot -- its sales actually increased 3.6 percent). Nordstrom then announced it lowered the price on its wares by an average of 22 percent. Department stores across the board held their fall sales a month earlier than usual and they can't afford to stop there. Which one of them will follow Mervyn's to Chapter 11? It's sad when a great store that makes it seem okay to feel aspirational has to follow in Wal-Mart's footsteps.
Hang in there, Nordstrom. Maybe I'll come calling again when markdowns are at least 50 percent off, but right now even marked-down shoes just seem too frivolous to be fashionable.
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Money Clips
- HILARIOUS: Warren Buffet Plays Axl Rose in New Commercial - Huffington Post
- ON THE PLUS SIDE: Where Home Prices Are Rising - CNNMoney
- FRICTION: Could China Trade War Put Walmart Out of Business? - 24/7 Wall St.
- PROFILE: Opinionated Auto Industry Insider Dies - FORTUNE
- DON'T LAUGH: More Homeowners Turning to Fake Grass - SmartMoney
- HIT HARDEST: States Hurt Most From Rising Gas Prices - CNBC
- GET YOUR MONEY'S WORTH: Best Cars to Buy Used - CBS MoneyWatch
Reader Comments (Page 1 of 1)
11-21-2008 @ 3:52PM
Queen B said...
That is a fantastic and TRUE article. I too am a NORDY SHOPPER who now REFUSES to pay FULL RETAIL FOR ANYTHING. WALMART, ROSS AND TJMAXX ARE my NEW BEST FRIENDS !!!!
I began posting my fabby finds at
www.thequeen-b.blogspot.com !
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11-21-2008 @ 8:40PM
Rebecca said...
Why do people dog Wal-mart and then say in the same breath that "Target is ok"? Target is a big-box store and has the same impact on smaller businesses as other big box stores. At least Wal-mart sells the same items at a much lower price and gives a lot of money to local organizations such as little league teams, Kiwanis, schools, food banks etc...They also take great care of their employees in time of personal crisis. I have seen MANY fundraisers held in local Wal-marts for employees that are losing their home, or just lost a family member to an unexpected illness or accident. They are never given the blanket answer "talk to corporate" when an employee needs help.
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11-25-2008 @ 2:43PM
Elizabeth said...
A Wal-Mart opened nearby. The local news did a story on how much money they saved, compared to the other grocery stores, and it was a LOT of money.
I have shopped there ever since, and I save $10-30 every time I go (for my family of 5). I am SO happy with their prices.
At last - a store with my own interests at heart - saving money so we can pay our bills!!
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11-26-2008 @ 11:17AM
Angela said...
How does Wal Mart treat it's employees unfairly? Anyone who makes that statement (sorry Vanessa) has not studied labor practices in the U.S. Wal Mart has set standards for workers in many many cases, and by keeping out the Unions have kept thier prices low and wages higher. (Please note the MESS the unionized car industry has wrought...can't make changes to bring fuel responsible cars, can't change lines, over payed workers...now defunct and jobless). Please, WalMart has set the Diamond Standard from day one, you can't be that big and be perfect but Sam Walton sure has come as close as anyone in a long time.
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11-26-2008 @ 7:51PM
Kristin said...
Im a wal-mart associate going on 25 years and I COMPLETELY agree. Thank you for your comments and standing up for us!!
11-26-2008 @ 5:22PM
Adams, T said...
Because I've become familiar with how Walmart is laid out, shopping there is not only frugal, but efficient as well. I especially find that buying house labels on food items such as cereal, soup,coffee, and canned vegetables makes gratifying economic sense, with no apparent disadvantage in either quality or taste.
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11-26-2008 @ 6:41PM
Angie said...
This is a dumb article. Nordstrom's clothing is far better made than the crap they sell at Wal-Mart.
Now I do shop at Target (and I buy basic items like t-shirts, socks, a cute little skirt, etc, there) but a shopper who shops at Nordstrom would not buy clothes at Wal-Mart, they just don't have the same style. Target, maybe, since I shop at both (Target more often than Nordstrom).
A better bet for bargain basement high quality merchandise is swallow your pride, head over to your local Goodwill or thrift store or visit www.shopgoodwill.com. I just bought a Dooney and Burke bag for $12.00. (yes, from a Dallas Goodwill store that had listed it online). It's an auction site ala Ebay, but since it's not popular yet, bargains can be found aplenty. Do some research on your labels and you can get stuff for pennies on the dollar. I have an Armani shirt from a local thrift store that still had the tags on it and only cost me $17.00. I couldn't do that either at Wal-Mart OR Target. Thrift stores require luck and patience, but they are worth it.
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11-26-2008 @ 8:04PM
Bear Jim said...
I am a man who lives in Orlando Florida where there are plenty of Super Target's and Super Walmart's. I like Super Target's grocery section and store better and prefer shopping there but must admit Super Walmart has the best prices so if its staple items that are exactly the same everywhere why not shop Walmart. As for clothes we have lots of nice outlet stores like Ralph Lauren, Nautica and others so I go there for clothes. Nordstrom is nice but WAY overpriced. Sure their service is better but I can deal with just OK service if is saves me a ton of money. Besides, I am 40 now, the last time I cared about brand names and over-priced clothes was when I was in high school. Then I went to a large college and saw people wore what they wanted to wear so realized overpaying greatly for clothes really is stupid and impresses no one (except those in high school).
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11-26-2008 @ 8:07PM
Kent in SD said...
Walmart actually treats its employees very well. I don't work for them, but my job does take me into several dozen stores during a month. I keep my eyes & ears open. More importantly, I keep my mind open too. Walmart has the lowest turnover of any of the big box stores. Look at the name tags on the people there and you'll see people who've been there 5, 10, even 15 years. Their new health care program was designed by Prof. Schondelmeyer, a leading expert from Univ. of Minnesota. In small towns especially Walmart offers some of the best jobs in town. Don't listen to union propaganda. They're just mad they aren't in on the Walmart gold rush. So, they spread lies. Finally, what I like best about Walmart this time of year is they not only welcome Salvation Army bellringers to the front of their store, they match the pot! Target doesn't care about the poor and refused to allow bellringers for the past several years. I don't shop Target any more.
Kent in SD
12-01-2008 @ 7:48AM
Lisa said...
Why do people keep bashing Walmart as an employer? My nephew works at a Walmart and LOVES it - my niece was a Target employee and hated it. The difference in the way my two relatives were/are treated as employees is vast. My nephew, after 3 months of employment, has just been offered a full time position, with benefits. My niece, with her college degree, could not advance from the stock room and part time hours. Instead of bashing Walmart maybe you should talk to some employees and see how they feel about working there.
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12-01-2008 @ 2:49PM
Bas said...
I would have taken the author's frugality a bit more seriously if she hadn't purchased "hardware and also bought groceries, a PlayStation game and, gasp, a shirt" - with the exception of the groceries, how exactly where the other items "necessities?"
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12-05-2008 @ 10:00AM
Gee said...
Walmart has better prices, true. Unfortunately, too many items are made in China. This will not help any of us in the long run - we need to recreate a workforce that produces and sells more items made here in the U.S. Ted Koppel did a 3-part special this year and one part dealt with this. A woman who lost her job in a mfg. plant which is now in China. Another furniture place with a well made sofa many parts done by hand. The company isn't doing well & most Americans couldn't afford that couch, but a wealthy family in China paid to have it shipped there! (More and more rise of wealth in China, guess why? WE'RE buying their stuff.) Koppel asked some of the people bitterly complaining about job losses where they shopped? The answer: Wal-Mart. It's cause and effect. So, if you aren't making it and have buy what you NEED at Wal-Mart, that is one thing. If you're spending less for more useless junk and goofy stuff, think twice. If YOUR job goes to China, you won't even be able to buy at Wal-Mart. (More and more people are going to Goodwill and Salvation Army).
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12-05-2008 @ 10:09AM
Gee said...
Linens N Things is bankrupt. At their "huge" going out of business sale, items were perhaps 30% off (and it looked like many prices were raised before being "slashed"). This is a common tactic. Looking at some of the stuff with in some cases maybe 500-1,000% markup (and again many items made in China and other countries), you could see why they created their own downfall. Note to all "trendy" stores that had consumers convinced that expensive is better: Peope are on to you. Even the ones who think they need a "designer" kitchen spoon are discovering that isn't so, and some of the high thread count sheets I have gotten at these stores I did find cheaper at TJ Maxx (probably from other stores that went under). Time to scale back and if TJM and other discounters are smart, they too will lower their prices.
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