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TheStreet Open House

Dear Wal-Mart: Rush Is Canadian

Stocks in this article: WMT

NEW YORK (TheStreet) -- It struck me kinda funny to see Wal-Mart (WMT) 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.

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