Sunday, August 18, 2013

Walmart's Worst Nightmare?

A Little Discount Grocery Chain Named WinCo

                                   

A discount grocery chain is being called "Walmart's worst nightmare." WinCo, a Western grocery chain with about 100 stores, has a business model that allows for cheaper prices than Walmart (WMT), writes Brad Tuttle at Time.
 
WinCo keeps costs low by buying directly from suppliers and eliminating middlemen, according to Tuttle. It also doesn't accept credit cards and has customers bag their own groceries.
 
A recent Idaho Statesman article about WinCo quoted retail analyst Burt Flickinger III as saying that WinCo was "unstoppable."
 
"They're Walmart's worst nightmare," Flickinger said.
 
Much like Costco, WinCo offers a minimalist selection instead of a wide array of brands according to Time.

For instance, WinCo might only carry two brands of toothpaste, while Walmart has more than 40.
 Unlike Walmart, whose employees have demanded better wages, the company provides health benefits to employees who work 24 hours per week and a pension.

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