Walmart – A brand redefined

To borrow from another brand… Walmart, you’ve come a long way baby.

Remember when everyone hated Walmart? It started out as a family run business and then as it grew, it became the evil empire.  There was even talk of a curse when the Waltons tragically lost two family members in one year.  A documentary that detailed the sins of Walmart was very popular and this is when I think the brand people realized there was a real problem here.

So what happened? My theory is that some corporate soul searching went on. Now whether or not soul searching can happen in for-profit corporations may be debatable, but it appears as though the company has made some significant changes to compete and work to improve the quality and perception of the Walmart brand.  Aside from branding, the corporation also faced real business hurdles because of how their brand was perceived.  I found an article from Emory’s Gozuieta School of Business that does a good job of summarizing:

According to several accounts, Wal-Mart is struggling to establish stores in the West and Northeast and in urban areas like Chicago because these areas are more unionized and particularly concerned about the company’s social policies. Wal-Mart has flourished in the Republican red states, but the company is virtually blocked out of expanding into Democratic blue states.

In 2009 the low cost retailer was ranked in the top two Fortune 500 companies and number 5 for profitability. With numbers like that most companies would have strong corporate giving programs. Philanthropy is a duty to most but always a plus in my book. Most recently, Walmart has contributed over 1 million dollars of aid to Haiti.  Big companies have great potential for good -or- maybe to whom much is given, much is expected…

Walmart is now the largest retailer of organic products.  It’s a volume game and they’ve got great distribution and expertise in supply chain management.  The move to organics is consumer-driven but the brand also benefits.  In addition to their big move into organics, the store is working with suppliers to help them adopt more sustainable business practices and more organic products.  In July of 2009, Walmart announced that they would create a worldwide sustainable product index which would provide consumers with a rating about the sustainability of products the store carries.

I vaguely remember issues about Walmart not paying a living wage, union busting, and discriminating against female employees.  But all of that seems to be like a distant bad dream.  Now, shoppers walk in with their reusable Walmart bags and load up on organic fruit and sustainable products.

Brand strategy or just good business? It’s great when you can do both with the same strategies.