Wal-Mart vs. Wegmans: The Name of the Game is Differentiation

Wal-Mart, to many, is an industry steam roller. It enters a geographic market and quickly wipes out neighboring competitors, then continues on its way crushing retailers who simply cannot compete with the everyday low prices it can offer its customers. Wegmans has been able to hold its own, but it has not been an easy fight. According to an article entitled, Wegmans Sweet Spot, “Danny Wegman's liberation manifests mostly as being just about everything that Wal-Mart is not.” Each and every day Wegmans fights to own a position in consumers’ minds that clearly separates it from its competitor, Wal-Mart.

Realizing that Wal-Mart has the economies of scale to offer prices that dip much lower than what Wegmans can feasibly offer, Wegmans does its best to make its store more of an experience to compensate for the at-times higher prices. Wegmans offers an unparalleled produce section that embodies freshness and epitomizes the highest standards of quality. The gourmet food stations, meals-made-easy instruction based cooking lessons, and superior pharmacy are just a few of the components that makes Wegmans a stand out compared to Wal-Mart. Danny Wegman has done his best to create real differentiation between the two retailers. Aside from the retail environment, Wegmans is a community staple in that it donates and supports local charities and local people. Customers see local produce featured in its stores and sponsorship at area events, and they see some of their own dollars come back in the form of community programming that Wegmans supports, such as their scholarship programs. Wegmans is successfully coming to own a unique place in the hearts and minds of consumers, which has certainly been a key factor in its expansion down the east coast.

- Courtney Hayward, Laura Heslop, Katie Tretter