Limits of Hyperefficiency
Wal-Mart backlash begins - on the Street. That is, Wal-Mart takes a hit because it doesn't discount as much as expected.
Has Wal-Mart reached a hyperefficiency bound? I don't think so (and this doesn't mean it has) - the price floor will keep dropping - it's a just a discontinuous function. The real Wal-Mart backlash will begin when consumer preferences shift away from myopic evaluations of quantity - ie, give me the 'most' for my buck now
- and towards a fuller evaluation of the consequences of hyperefficiency. It's happening slowly but surely.
A falling dollar and import substitution might help this trend hit the inflection point.