HOWARD DAVIDOWITZ: Walmart Will Be 'Screwed For A Long Time'

Howard Davidowitz of Davidowitz & Associates was on Yahoo’s The Daily Ticker to talk retail this afternoon, and the message was clear: mid-market retailers are being hammered right now.

During the five minute interview, he took the knife to Sears, JC Penney, Bon-Ton, Abercrombie and a number of others struggling to reinvent themselves. But at the end, contrary to a turnaround in same-store sales that show some promise, he pointed to Walmart as one of the biggest coming disasters [at 3:29 in the video below].

“I think they’ve lost their low price image, that was catastrophic,” he said. “Sam Walton would never have let this happen. It was a disaster, they remodeled their stores, fancier apparel, they reduced tons of items people liked. And they let Family Dollar, Dollar Tree, and Dollar General, and Aldi eat their lunch.”

He continues: 

“It was self inflicted,” Davidowitz said. “How could you lose your price image if you’re Walmart? Well the management of Walmart accomplished that, brilliant! And they’re going to be screwed for a long time. This is going to be a 10 year deal, repositioning, they’re building smaller stores. They’ve been working on neighbourhood markets for a decade, they’ve been massively unsuccessful at doing it!”

 

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