Wal-Mart (WMT) does not care if it has been burned by its past efforts to try to get affluent shoppers. The world’s largest retailer has been known for years as catering to the relatively poor and lower middle class. Its appeal to shoppers has grown during the recession, probably because almost everyone feels poor.
Wal-Mart is riding a tide of positive publicity and strong sales. That may made it a very good time to attempt once more to bring in customers who spend most of their time at higher end retailers.
According to Reuters, Wal-Mart “is rolling out a new line of cosmetics by Hard Candy.” The products are aimed at younger women who can afford to spend $10 on lipstick or foundation. The typical Wal-Mart shopper may not wear any make-up at all.
Wal-Mart has nothing to lose by the plan and plenty to gain. The cost of making another push into product lines that are likely to appeal to the middle class will not dent Wal-Mart’s numbers. If the foray works, the world’s largest retailer may find itself with a new class of shoppers.
If the recession continues, the middle class will keep shopping at Wal-Mart any way.
Douglas A. McIntyre
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