Reefs.org Forums

[Rover]

Walmart is really going after the pet industry this year. Lots of secret pilots and "store within a store" type plans. Petsmart has plenty of cash and growth and will come through it just fine. The expectation is that Petco will be the Circuit City type third player that gets picked off, with the 2 left standing dividing the spoils...

[JennM]

Is there anything that Walmart doesn't go after?

[dizzy]

Walmart may get distracted trying to put out other fires. It's no secret the people (unions) pushing for the Employee Free Choice Act aka Card Check have a laser like bead on Wally World. If the unions get their claws on Walmart they will take away some of their competitive advantage as they are forced to pay higher wages to employees. 2009 should be an interesting year in many ways.

[seamaiden]

Oh, I have to see this. Has Petco issued any statements on projections?

[dizzy]

Walmart is really going to be busy.

Wal-Mart looks to Hispanic market
By Jonathan Birchall

Published: March 12 2009 18:03 | Last updated: March 12 2009 18:03

Wal-Mart plans to open its first Hispanic-focused supermarkets this summer in Arizona and Texas as the largest US retailer continues its drive to expand its dominance of the US grocery business.

The pilot stores, named Supermercado de Walmart, will open in Phoenix and Houston in remodelled 39,000 sq ft locations occupied previously by two of Wal-Mart’s Neighborhood Market stores.

EDITOR’S CHOICE
Wal-Mart remains upbeat on outlook - Nov-13Wal-Mart sees opportunities amid the crisis - Nov-02Michael Skapinker: An ethics lesson from an unlikely quarter - Oct-27Wal-Mart in China standards drive - Oct-22Wal-Mart seeks green in China - Oct-21Pressure on US retailers rising - Oct-19

[Goldstein]

I'd be more than happy to see Petco go the way of the dinosaur.

I can't see WalMart getting into the marine hobby. How much clout does Petco have in the MO industry? They seem to have scaled back or eliminated their saltwater section at most of the stores I've visited in the past few years.

Petsmart sells a few saltwater dry goods (mostly Red Sea and marineland) but doesn't carry livestock to my knowledge.

[seamaiden]

I can see Walmart getting into the marine hobby and supplying the basics, damsels and clownfishes, triggers and a few others. Amazingly enough, our local Walmart's freshwater-only systems are head and shoulders above the new Petco's freshwater systems. I don't know how they're doing it, but their tanks and fish are always in better condition.

[JennM]

It's long been a joke around here - our Walmart is known as Wal-Martinez because at any given time the Hispanics far outnumber any other ethnic group in the store.

I have a hard time seeing Walmart getting into marines - the cheapskate mentality that attracts so many there, is not conducive to those who spend a bundle on a quality system.

Even a serious hobbyist who buys his clothing or food at Walmart, usually wouldn't buy his tank or livestock there. At least in my experience.

They can have the freshwater end of it - I carried freshies for 5 years and they never amounted to more than 2% of my sales, but the space they occupied was nearly half my overhead. Got rid of them at the end of last year and no regrets. My saltwater customers are happy - 100% of my focus is on their needs now. I still carry a few basic freshwater supplies - and I still have some dedicated freshwater customers - I just don't have to spend extra time and money on maintaining systems that sometimes housed fish that were here a year before they sold.

And I think it's hit and miss with Walmarts and fish. I've heard of a few stores that had decent aquatics, but I can tell you that the one here is deplorable - and people I know who have worked there have reported pulling 100 deadies at a time when they came in for the 7 AM shift. Once a year or so ago the system was soaped too... nice.

We have a new Petsmart set to open in a few weeks, just a few miles from me - I'll introduce myself up there and give them cards - I've had referrals from other Petsmarts before, when people want saltwater stuff. It may do my economy some good

Jenn

[SlipperMan]

They can have the freshwater end of it - I carried freshies for 5 years and they never amounted to more than 2% of my sales, but the space they occupied was nearly half my overhead. Got rid of them at the end of last year and no regrets. My saltwater customers are happy - 100% of my focus is on their needs now. I still carry a few basic freshwater supplies - and I still have some dedicated freshwater customers - I just don't have to spend extra time and money on maintaining systems that sometimes housed fish that were here a year before they sold.

Jenn

Opposite around here really. Freshwater seems to carry the largest store as they recently got into the marine side, with severely overpriced corals. But the thing is, they have a reputation so people will pay (I kid you not here) $150 for a common zoanthid rock there but won't pay $40 for the same one down the road, in a MUCH better store with much more knowledgeable owners.

Honestly, this town isn't very "bright" when it comes to stuff. They'll continually get ripped off by two stores, and admit it, but continue to go back.

I doubt Wal-Mart will make the marine thing work in most towns. Here it just might fly....Pets Supplies Plus' marine section is booming here. Half dead corals still command a hefty price and are sold like crazy. *shrugs*

[Twisted]

Actually my mixed reef is in a 55 gallon from Wal-mart. Where do you think the new blood comming into the hobby come from?

Someone gave them a tank, or they bought it spur of the moment, got into fresh water, then decided to try thier hand at saltwater.

As a hobbyist, I wouldn't buy live goods from Petco, I sure as heck wouldn't from Wal-mart.

But dry goods...I might have if they happen to be carrying a product line I liked.

Hell, I am in there a few times a month, I get what i need and get out!

[JennM]

Well, often a freshwater "starter kit" (such as can be found at Walmart) is woefully insufficient.

Standard-issue filtration doesn't turn enough water for a marine system. Standard-issue lighting is insufficient for corals.

So you get a deal on a starter kit and end up either having limited success, or you end up with a pile of surplus equipment when you upgrade to decent equipment.

The glass box is the glass box... to a point. I doubt Walmart carries anything larger than a 55 anyway, but if one is looking for larger, they ought to consider a reef-ready tank, and you won't find those at Walmart, usually not at Petsmart and only *maybe* at Petco.

I get many people coming in who have a 75 or similar with a canister or some other less-than-ideal setup, that they got either at a big box or at a mom and pop who doesn't know the right way to do marine systems, and when they start having nitrate issues and whatnot, they find me, only to have me suggest that they end up replacing most of their equipment if they want to keep that reef tank they want so badly.

So they end up putting good money after bad. Happens *all* the time.

It's not worth doing if it's not done right.

Jenn

[Twisted]

Well, not exactly what I meant, but you are right.

I actually moved in to this house 7 years ago, and was always a fish lover, but hadn't had a tank in over 15 years.

While my wife and I were walking through Wal-mart stocking up on house stuff, I walked past a pallet with the 55 gallon starter kit on it.
Was like $130 I think at the time. So I bought it.

I ran fresh water in it for a few years and it was plenty well equipped for that.

Then i got in a bind on my car project, and was bored with my freshwater tank, so I took the jump.....here is where the "True" fish stores come into play....

As for extra equipment...who doesn't have it. I have three other lighting types that were over my tank at some point, sitting in my shop.

And as far as that HOB filter the wal mart set up comes with, I ran it on that tank when i was running softies for over a year at the start of my salt water crash course, and it actually maintained the tank well, especially after I took the pads out of it and put a mesh bag with media in it so I could clean it.

[seamaiden]

Look, it doesn't matter how inadequate the starter kit from Walmart is, it's CHEAP and affordable. If people want to have any enjoyments, especially as jobs are drying up, etcetera, and they want that to be fish, then they're going to go with cheap.

I live in area with a new Petco (drove the local Pets n Stuff out of business in a month), Walmart, and the new, much smaller and far more inadequate Pets n Stuff downcountry. All three carry fish, though Pets n Stuff no longer has much in the way of fish, and it's all freshies. I can totally see Walmart giving Petschmo a full run for their money, hard, and at this point they're pretty much the only games in town, especially with salties. The alternatives, should my husband or I want to set up another salt tank, would be to hit the capitol or make a three hour one-way trip to the Bay Area OR buy online. (A great deal of our shopping is done online, in fact.)

For Walmart or Petco to fail at this a couple of things would have to happen first (and that hasn't happened yet for Petco, has it?). First, there would have to be good competition. You may have or be that competition in your market, but as outlined above, there is no other real competition for these big players where I am. It can't be that uncommon, either, that relatively non-urbanized areas have little or nothing in the way of LFS competition for these players. Second, people would have to care enough, and I'll tell ya this, if they cared about Pets n Stuff, how come they immediately took their business from Pam and gave it to Petco? Price.

[swsaltwater]

My guess is they will go into the Drygoods hard to compete with Target and the big Foster Smith deal. They just like to step on the competition is all. Maybe they will kill livestock in order to sell the stuff but I will have to see it to believe it in Tucson. Larger cities they might make waves though. Besides the Pet industry is much larger in the companion animal market so why try fish, kinda stupid.

[seamaiden]

Petco's margins are all made with their dogfood sales. It was so back in '93-'94 and I am fairly certain that it is so now.

[Rover]

Well the point wasn't that Walmart was getting into marines or aquatics. The point is Walmart is going after Dog and Cat heavily (ie, 70% of PetSmart and Petco's business model). They have changed the store decor to perfectly mimic a brand new PetSmart, are piloting Grooming Salons, and they are even experimenting with a "store within a store" that you can take your pet to. If Walmart disrupts the foundation, the weaker players (ie Petco) won't be able to remain viable on the fringes (ie Aquatics and Organic Pet Foods). So if Walmart picks Petco off it will be a plus for you marine guys.

[SlipperMan]

Well I just went to the local Petco, they were in the process of taking down their marine tanks. Had most of them covered up and the end tanks were being drained. The employee said they'll be switched over to freshwater in the next week or so.

[GreshamH]

Well I just went to the local Petco, they were in the process of taking down their marine tanks. Had most of them covered up and the end tanks were being drained. The employee said they'll be switched over to freshwater in the next week or so.

I bet he meant to say fully stocked in a week or so