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.”
“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!”