To combat falling sales, discount retailer K-Mart is attempting a bold tactic: be cool.
Until then he'd had no direct retail experience, but the acquisition, he believed, was the only way to prevent Luxottica from being squeezed by such discount chains asWal-Mart--even if it meant competing with his best customers, the small opticians that then provided 90% of his sales.
Gibara was pushing the brand into discount chains like Wal-Mart's Sam's Clubs, forcing smaller retailers to cut prices.
Investors have typically turned to discount retailers like Wal-Mart ( WMT) and Target ( TGT) when the economy weakens.
Wal-Mart closed 446 discount stores between 2007-2011, and opened 773 new supercenters.
In that regard, Wal-Mart outperformed the discount retail sector, which has held up better than most but is off by 4% in the same time period.
But the acquisition, he believed, was the only way to prevent Luxottica from being squeezed by discount chains like Wal-Mart--even if it meant competing with his best customers, small opticians then providing 90% of his sales.
Sears Grand, a new type of store that is being rolled out across the country, is designed to compete on more equal terms with big discount chains, like Wal-Mart, that operate out of warehouses.
Through the year, discount retailers such as Wal-Mart and Target have performed relatively well, as they resist the temptation of passing on prices to consumers and to retain competitive pricing. (See On The Verge of a Global Food Crisis).
Along with the ad campaign goes a strengthening of Samsung's distribution channels in the U.S. This is one of the toughest challenges for Samsung, since many retailers still think of the company as a producer of cheap appliances that formerly sold its goods through discount stores such as Wal-Mart and Target.
Books sales are flat, discount super-centers like Wal-Mart have gobbled up half the best sellers and no one touches Amazon online.
The more discount retailers like Target, Wal-Mart (NYSE:WMT) and Costco (NASDAQ:COST) are performing better in this slow economic recovery.
FORBES: Stocks Survive Hewlett-Packard's Big Bungle, France's Downgrade
The company faces stiff competition, which primarily comes from large format specialty retailers such as Circuit City and Best Buy, and discount retail giants such as Wal-Mart and Target.
So will Wal-Mart someday morph into a discount residential energy provider, undercutting the likes of Reliant Energy (nyse: RRI - news - people ) in Texas?
It is a major competitor in the e-commerce industry as well, sharing the market with eBay and discount retailers like Best Buy and Wal-Mart for its electronic products, books and apparel.
The chain, controlled by hedge fund manager Eddie Lampert, competes most with Wal-Mart and Target, as well as Costco and discount chains like Dollar General.
FORBES: Sears Still Drenched In Red Ink: Q3 Loss Wider Than Expected
Wal-Mart, in which lawyers representing female employees of the discount chain allege women were denied management positions and pay because of their sex.
FORBES: Supreme Court Takes On Massive Wal-Mart Discrimination Case
We have seen both discount, big box retailers like Target ( TGT), Wal-Mart ( WMT) and Costco ( COST) show relative strength, but we have also seen some high-end retailers like Michael Kors ( KORS) surpass expectations as well.
Even though KMart had pioneered discount retailing, it could not compete with the fast growing, supply chain innovating Wal-Mart.
FORBES: Sears? Stop the subsidies, sell the stock, invest in Groupon
By 1991 Donald's reputation had reached Wal-Mart founder Sam Walton, who flew to Phoenix to convince him to run the discount giant's nascent grocery division.
应用推荐