Viewpoints

Lessons in Vision From Wal-Mart and Trader Joe’s

RSS

Seeking retail entrepreneur and visionary. Candidate will correctly predict the future, launch a retail organization based on those forecasts, and in the process transform the food industry.

If this were a real job ad, it wouldn't be very successful. First, it's almost impossible to find someone with all these entrepreneurial traits. Second, the few candidates who do exist wouldn't apply for jobs. They'd create them.

But this ad copy is useful because it pinpoints the characteristics that defined two very special entrepreneurs now being honored by SN with induction into our Hall of Fame. Those are the late Sam Walton, who founded Wal-Mart Stores in 1962, and Joe Coulombe, who created Trader Joe's in 1967. These men knew things about innovation and vision that we can still learn from.

Profiles of the leaders appear in this issue, along with a profile of a legendary former Kroger leader, the late Joseph B. Hall, who is another new addition to our Hall.

While Walton and Coulombe had quite different business visions, they had some surprisingly similar qualities.

Both managed to grasp key future trends and opportunities better than others. Walton, of course, early on came to understand how proficiency in low-cost operations and efficiency would be a game changer for the industry. Coulombe saw an emerging group of consumers who were highly educated but with relatively low incomes, and realized they would need a sophisticated retail outlet that addressed their lifestyles.

Each of these entrepreneurs was committed to experimentation. Walton learned a lot from trying unconventional approaches early in his career after purchasing a Ben Franklin variety store in Arkansas. Coulombe learned from his early experiences with starting a convenience store chain.

Later, during his Trader Joe's experience, he was driven to launching waves of new in-store concepts partly because, as he put it: “When every last cent you own is invested in the business … you tend to come up with a lot of ideas.”

Both Coulombe and Walton were determined to fine-tune their retail formats and niches, and were pleased when their concepts ran counter to directions of competitors.

Walton once said: “I ignore the conventional wisdom and go the other way. If everybody else is doing it one way, there's a good chance you can find your niche by going in exactly the opposite direction.”

How can we benefit today from the experiences of these men? Here are a few observations: Make sure to clearly read trends (a bit harder to do today due to information overload). Don't be afraid to experiment. Once you've done due diligence and made assessments, trust your convictions. And maintain an entrepreneurial edge. The last one is hardest to do in a large organization, but it's crucial.

OK, so these lessons sound basic, right? Well, why does success have to be highly complex?

Contributors

David Orgel

David Orgel is executive director, content & user engagement, of Supermarket News (SN) and its website, SupermarketNews.com. Orgel delivers his opinions on industry trends through a bi-weekly...

Jon Springer

Jon Springer has been writing about food, food retailers and food retailing for more than 10 years, and is in his second tour of duty with Supermarket News. His prior experience includes covering the...
What's Viewpoints?

In their Viewpoints columns, SN editors give their perspectives on current industry issues.

Blog Archive
Penton Media Food Group and Related Sites

Sponsored Introduction Continue on to (or wait seconds) ×