Wal-Mart's influence over the retail universe is not only slipping, it finds itself scrambling to keep up with swifter rivals. It remains an enormous force in retailing, of course. And it can
still disrupt prices--as it did last year by cutting some generic prescriptions to $4--but success is no longer guaranteed.
American shoppers are increasingly looking for qualities
that Wal-Mart has trouble providing. Big-name brands that fueled Wal-Mart's climb to the top are forging exclusive distribution deals with other retailers, or working to reduce their reliance on its
stores. PepsiCo recently skipped Wal-Mart when launching a new energy drink in favor of Whole Foods Market. Procter & Gamble gets 15% of its revenue from Wal-Mart, down 3% from 2003.
The
big-box retailing formula that drove Wal-Mart's success is making it difficult for the retailer to evolve. Consumers are demanding more freshness and choice, which means that foods and new clothing
designs must appear on shelves more frequently. They are also demanding more personalized service.
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