Like McDonald's, which attracted more high-end customers with spruced-up restaurants while not abandoning its dollar menu, Wal-Mart's trick will be to build on the early success of some upscale apparel lines while continuing to offer low price points across its products, Shapira indicated.
The same revolution in logistics and computer-driven merchandising that led to Wal-Mart is now being used by companies like Dollar General to build highly profitable stores within cities.