K-Mart + WalMart Failure Congruence?

Discussion in 'The Okie Corral' started by LinuxLover, Dec 10, 2019.

  1. LinuxLover

    LinuxLover Ba-nan-nah-nuh

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    I don't believe I ever noticed - surely didn't THINK of this parallel ---

    .... but does anyone even remotely think that K-Mart started their failure death spiral by dropping firearm sales in their stores?

    I recognize that boycotting K-Mart because of their dropping firearms/ammunition sales could equal just a small drop in the bucket if pro-firearms owners decided to not grace their floors. Mebbeee.....???

    Is this fodder for thought that maybe WallyWorld could have also shot themselves in the nether and may wake up and re-institute firearms and ammo sales in the near future?
     
  2. PBCounty

    PBCounty

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    Walmart is rapidly becoming a grocery store. Small margin durables with loooong shelf linger times are simply not consequential. And regardless of how important "we" think we are in the context of boycotts, we simply aren't.
     

  3. legalsten

    legalsten

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    I remember K Mart had 22-250 for 7 bucks a box and I bought all 11 boxes they had . I still remember the look on the guys face when he said " how many do you want " and I replied " All of them " .
     
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  4. DJ Niner

    DJ Niner Staff Member Moderator

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    Back when K-mart sold guns and ammo, I often went there to buy ammo. While I was there, I usually picked-up something else, whether it was targets or something else in Sporting Goods, or snacks/drinks for the range trip. When they stopped carrying ammo, they lost ALL those sales, not just the ammo. It wasn't really about a boycott, as much as convenience; I still had to go buy ammo SOMEPLACE, and I might as well get the other stuff at the new ammo-stop-store as well.

    The same thing will happen to Walmart. I suspect the Sporting Goods area will shrink over time, with the various non-hunting and non-traditional-gun-related accessories suffering the largest drop in sales (targets, ear protection, holsters, certain scopes and rings, larger gun cases, etc.). With its grocery and many other areas, Walmart is more resistant to larger sales drops in one area crippling the business, but I still think they will feel the sting of this for a long time.
     
  5. Bill Keith

    Bill Keith

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    Brick and mortar stores are losing some sales to the internet. Why go and schlep to some place when you can sit at home/work/in the car and order stuff on line? Guns and ammunition sales are done increasingly on line. We go online for reviews, and shop for stuff online as well. Kmart and Walmart stores I've perused for shooting sports goods have only a fraction of what I can pull up with the click of a computer.
     
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  6. 686 AR15 G17Fan

    686 AR15 G17Fan

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    I think your assessment is accurate BUT it really won't affect their bottom line. Just like when CVS stopped selling tobacco products. Short term hit but no long term harm.
     
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  7. WeeWilly

    WeeWilly

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    There is zero parallels between K-Mart and Walmart, other than they have big footprint stores.

    As far a halting gun sales hurting a company, there seems to be an inverse correlation between Dick's winding down gun sales and their stock price, so...

    Frankly anyone staying in the retail guns sales business has to be out of their mind. A cut throat, low margin business with products that weigh a ton.
     
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  8. DJ Niner

    DJ Niner Staff Member Moderator

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    All true, but they are selling that stuff they stock in-store to SOMEBODY, and they just took an action that will greatly reduce the number of people specifically heading into their Sporting Goods areas. That WILL have a spillover effect on in-store sales of related items.
     
  9. Batesmotel

    Batesmotel

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    This morning my wife got an offer to buy the iPad she was looking at with 2 HOUR delivery.
     
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  10. DJ Niner

    DJ Niner Staff Member Moderator

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    In the short term. Let's see what happens long-term.

    Things ARE changing, but personally, I always thought a "Sporting Goods" store had to sell guns and ammo to be worthy of the title.
     
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  11. WeeWilly

    WeeWilly

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    Selling guns only makes sense if you have high volumes (buying leverage). It also takes a skilled staff just to manage the legal labyrinth.

    I shop about once a month at the Walmart closest to me. One time I waited 10 minutes until they could find someone who had a key to the case a few rifles and shotguns were locked up in. I just wanted to take a look at a Henry that had been in there for a while.

    I finally got to hold the gun, when I was done handed it back to the manager who locked it back up. I noticed the tag was snagged on another gun as he placed it back in the case. I walked by that gun and the Savage its tag was snagged on for six months and that tag never moved.

    Retailers don’t carry inventory for symbolic reasons.
     
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  12. Bill Keith

    Bill Keith

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    That's great! That's a great sales competition approach. There will always be a need for stores so people can go and look and buy if they choose. I've gone and looked at TV's and other high end consumer items and then bought them on line for lower prices and to avoid the sales taxes...it is 8.25% where I live.
     
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  13. cbetts1

    cbetts1

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    Walmart is spending millions and millions on AI and on line sales. They have tech centers opening all over the place. NY, Dallas, Austin etc. They are doing their best not to become the next Sears or K-Mart. Walmart is trying to compete with Amazon and other on line sales that have taken some of their market. Some areas prohibit full super Walmart's, so they put in those grocery stores. They may decrease ammo and rifle sales because of politics but the rest will stay. The left will continue demonizing firearms and the NRA. One rifle or ammo sold to a mass shooter brings a lot of bad press from the MSM today.
     
  14. Flying-Dutchman

    Flying-Dutchman

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    It can take a long time for a stock price to reflect the health and future prospects of a company as you well know I am sure.

    If you want to stop selling guns, fine. Just don't politicize it or moralize. This will be particularly bad for Dick's long term. Walmart is a different story as a department store they sell a bit of everything in a mediocre way. People go to Walmart for the price not expertise.

    I remember the Laneco department store; they sold surplus rifles like Enfield No4's before guns were a wicked totem. Of course Lane's is no more. It is the department store model that is prone to failure.

    There is opportunity to make money in gun sales for niche businesses. Guns are a strange product in that they are bashed by the mainstream media yet they sell well compared to some other products. There is money in it but what do I know.
     
  15. Dave514

    Dave514

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    I think there is nearly a zero impact on either chain of stores.
     
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  16. czsmithGT

    czsmithGT

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    K Mart started it's death spiral over 10 years ago due to gross mismanagement and over that time went from over 2000 stores to around 800.
     
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  17. LEO/Dad

    LEO/Dad Navy Veteran

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    I bought a gun at Cabella's recently. Sales people sell at the counter, (busy day, you take a number to be waited on). After you decide on your purchase, sales guy takes you to end of counter where there is a business center where the sale is finalized. 24 hour wait in Missouri. They keep the Sales guys selling, and business people completing the sale.
    Many stores are now selling more groceries. Dollar General now have new grocery stores. Our Kmart store closed maybe 10 years ago. Large store and parking lot with garage service. The property is still vacant, maybe 5 acres. We recently had a Shopko store close. Walmart now is our only source for those general purpose items. Our city is 40K. I have noticed that the gun counter in our Walmart is seldom staffed, and there doesn't seem to be much activity in sporting goods. We have several other stores selling firearms, with knowledgable staff, that do a good job selling. We have friends that live in Decatur, Illinois. Population 76k. He said they have one store selling firearms, and it is a Farm Store. Times are changing.
     
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  18. P99er

    P99er GT Ombudsman

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    I live in the suburbs of Memphis, TN. There is only one mall in the area that has a reputation for being "safe" (even though it really isn't). 5 years ago, it would have the interstate exits clogged to the point of drivers pulling off on the shoulder. The traffic would back up to the previous exit. MPD would have officers on the main road running the traffic lights with a manual controller. It was a nightmare. Especially the last couple weeks leading up to Christmas.

    The last couple years, I haven't seen that heavy traffic, or officers running the traffic lights. I may be mistaken and just didn't notice, but I think I would have. I will pay more attention this season for curiosity sake.

    To think Amazon took that much business away from B&M is stunning.
     
  19. Hannie Caulder

    Hannie Caulder Diva extraordinaire

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    I buy all my ammo on the internet. You can save a lot of money shopping around and buying in bulk. In fact, I was shopping for 9mm when I discovered GT.
     
  20. WeeWilly

    WeeWilly

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    I don’t agree at all that it can take a long time to see the actual results of decisions retailers are making about what they put on their shelves reflected in the stock price.

    Brick and Mortar retail is in the penalty box in the stock market these days. They are definitely in a place where their actual results in a given quarter and even more importantly their forward guidance makes all the difference.

    Both Walmart and Dicks are retailers whose stock have done really well in recent times, because their results have reflected improved performance in the fundamentals.

    I believe anyone who thinks a big box retailer who decides to get out of gun sales is destined for failure, because they quit selling guns and ammo is suffering from a massive breakdown of perspective.

    The great GT boycotts haven’t shown up in the results, and in retail where inventory turns is the name of the game, any boycotts that gained traction here would have already been felt.
     
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