Q Why do you think Walmart hasn't been successful once they saw Costco in competing?
A They were too wedded by the ideas they already had. That's everybody's trouble. They just can't accept a new idea because the space is occupied by an old idea. They got in the habit of getting the real estate practically even nothing because they went in little towns where nothing was valuable. So they're always, their occupancy costs are like zero, and they knew how to make big division stores. That was their formula. So it offended them to go against the rich suburbs and to have to pay up for the good locations, and Costco just specialized in the good locations where the rich people live. And Walmart just let them do it year after year. It was a terrible mistake.
AI assessment note: “They were too wedded by the ideas they already had.”