Competitive Effects of Wal-Mart Supercenter Entry: Moderating Roles of Category and Brand Characteristics

- We study the differential effects of Wal-Mart entry across categories and brands.
- Premium and economy national brands are less vulnerable than mid-tier brands.
- Low market share national brands are the least vulnerable of all the brand groups.
- Non-food, promotion intensive, less concentrated categories are less vulnerable.
- Category and brand assortment differentiation can help in competing with Wal-Mart.