As we moved along in the seventies, we had very definitely become an effective retail entity, and we had set the stage for the even more phenomenal growth that was going to follow. It's amazing that our competitors didn't catch on to us quicker and try harder to stop us. Whenever we put a Wal-Mart store into a town, customers would just flock to us from the variety stores. It didn't take those stores long to figure out that if they were going to stay in business against this thing Wal-Mart had created, they were going to have to go into it themselves. And most of them did eventually convert to discounting. Kuhn's Big K became a discount chain. Sterling launched its Magic Mart discount chain. And Duckwall went into discounting. Now, most of these guys already had distribution centers and systems in place, while we had to build one from scratch. So on paper we really didn't stand a chance. What happened was that they didn't really commit to discounting. They held on to their old variety store concepts too long. They were so accustomed to getting their 45 percent markup, they never let go. It was hard for them to take a blouse they'd been selling for $8.00, and sell it for $5.00, and only make 30 percent. With our low costs, our low expense structures, and our low prices, we were ending an era in the heartland. We shut the door on variety store thinking.
( Sam Walton )
[ Sam Walton: Made In America ]
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