This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dear Wal-Mart: Rush Is Canadian

NEW YORK (TheStreet) -- It struck me kinda funny to see Wal-Mart (WMT - Get Report) use a Canadian band, Rush, to promote the merits of American workers (and the company's apparent commitment to them) with a warm and fuzzy Winter Olympics television advertisement:

At one time, WMT might have been the stock you buy, hold, accumulate, forget about and leave to your grandkids. Like McDonalds (MCD).

CMG Chart
CMG data by YCharts

But that's probably no longer the case. Wal-Mart provides what could be a cross-industry case study for competing on little more than price. It's probably not the best route to take if you're a tech company attempting to challenge Apple (AAPL). And, as Sterne Agee recently outlined, via Business Insider, the strategy of being the low price leader appears to be backfiring on Wal-Mart:

Family Dollar (FDO) shoppers paid 2.7% less on purchases than Wal-Mart shoppers in January ... Dollar General (DG) shoppers paid .2% less ...
The cost of the baskets has dropped by $9.37 and $4 at Family Dollar and Dollar General, respectively, since May 2013. By comparison, the cost of the baskets has increased $2.36 at Wal-Mart.

Wal-Mart never had a viable exit plan from the slums. Now, it's in trouble. And it's aiming for a nostalgic shot to the heart by way of the dulcet tones of the great Geddy Lee. 

--Written by Rocco Pendola in Santa Monica, Calif.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks. Rocco Pendola is a columnist for TheStreet. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
WMT $79.84 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs