Tuesday, October 02, 2007

Wal-Mart One Trick Pony

Wal-Mart (WMT) announced price cuts on toys two weeks earlier than last year. The news media story is that they made the announcement two weeks earlier than last year. In some reports there is mention that Wal-Mart has stepped up their safety inspections. We will see if they kick something out of the line up. But as we all know the orders have been placed months ago.

The toy industry and Wal-Mart by association have a credibility problem because of "Made in China" safety issues. Most concerned parents want additional assurances as to why a particular toy is still a good idea. When your child is poisoned; a cheap price tag will only stimulate class action lawsuits as to why Wal-Mart induced me to buy something bad with a cheap price when they should have known better.

Wal-Mart is pushing the only button they know how. Cheap cheap prices. Credibility in safety issues is not solved by cheap prices.

If Wal-Mart continues this thinking they will soon get into their own discount lifeboat. Wonder if it floats properly?