Originally posted by Mike Ellis
Wal-Mart employs some of the smartest people in the world, their volume of sales is staggering and EVERYTHING they do is for a calculated reason. See all those checkout lanes closed, and people lined up waiting to buy? There is some optimum "stand in line" time for customer sales, wherein the customer is bored enough (or whatever) to be stimulated to look at and buy some of the impulse items near the checkout. You can bet your bottom $$$ the Wal-Mart guys have figured out that time, and when the number of people in line reaches a certain point there will magically be another register opened. I bet the average customer in their store spends at least $50 each trip, and more like $75 - $100. Wal-Mart is the smartest retailer in the world... for now.
One of the mistakes people make is thinking that the products that they buy at Costco or Wal-Mart are the same as the "normal retail" shops sell. Tain't necessarily so. They may have Michelin Super-D-Duper tire model X, but sometimes there is fine print on that label that it is model X-WM, the Wal-Mart special with fewer belts or such. The warehouse stores sell a lot of stuff that is special run for them, or overstock / closeout merchandise they can get at a good buy. There is no guarantee that the Costco Minute Maid orange juice in a 55-gallon drum is mixed the same as the "regular retail" variant, so caveat emptor. (Wasn't there a thread some time back about Costco tires or batteries not being warrantable at other retailers carrying that brand?)
Same thing happens in the computer industry with the cheaper "OEM" version of an accessory, and the full retail version.