Wal-Mart, Your New Banker? (Business Week)

[cthrumatrix]

Wal-Mart, Your New Banker?

It can't be or own a full-fledged bank -- yet -- but its partnerships and in-store financial services are giving the industry jitters

Wal-Mart Stores (WMT ) didn't get to be the world's biggest retailer by giving up easily. So despite being twice thwarted by lawmakers in its efforts to buy a bank, it has quietly but tenaciously expanded its foothold in financial services.

In its latest move, announced on Jan. 21, the retailing giant is introducing a no-fee Wal-Mart Discover credit card that offers 1% cash back, which it will launch with GE Consumer Finance (GE ) in March.

This relentless push into financial services is starting to send shivers through the banking industry. Few believe Wal-Mart will stop with basic services as it applies its low-price, high-volume formula to yet another business category. And while other companies, from Nordstrom (JWN ) to General Motors (GM ), have bank and thrift charters or hybrid Federal Deposit Insurance Corp.-insured industrial loan companies (ILCs) in tow, no one trips alarms like Wal-Mart.


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http://yahoo.businessweek.com/bwdaily/dnflash/jan2005/nf20050127_3485_db035.htm

[Technowitch]

1. Not a chance in hell

I refuse to even shop there.

[Bono71]

2. Walmart is quickly trying to go the way of huge conglomerates like

GE and TYCO...not a bad strategy...there is just only so much retail growth a company can attain.

[PROGRESSIVE1]

3. Are you saying that at some point Wal Mart cannot grow anymore..

and maybe someone will challege these Facists?!?

[Commie Pinko Dirtbag]

9. So they can grow truly without limit.

Now, do you think that is a GOOD thing?

[Solon]

4. OK, so how big is this empire going to get...

I have actually told people on this board that Wal-Mart wanted in the Banking biz for a while, but regulation is in the way, they will circumvent it, that I do not doubt.

Wal-Mart: Largest Retailer in the World
Wal-Mart: Largest Shipping Company in the world(note: pending, trying to buy out one of the largest container shipping companies in the world, don't know how it goes right now, but I doubt they would fail)
Wal-mart: Largest Banker in the World???

I wonder what other industries they would try to dominate, maybe car manufacturing? Or how about buying out Merck, or maybe even Pfizer, hell Wal-Mart makes enough PER YEAR to buy out any 5 of the Fortune 500 they wanted.

[VegasWolf]

6. You haven't seen those tiny $6,500 WalMart automobiles? n/t

[Solon]

7. Don't laugh too hard...

a couple of things, China is now manufacturing cars under their own brand names, I wonder if they are totally state owned corporations, or if companies like Wal-Mart own some shares of them. This could get interesting, and remember, it is doubtful that any cars Wal-Mart makes would have the name Wal-Mart on them. Instead, these dealerships will probably just happen to be right across the parking lots or streets from Wal-Marts and Sam's Clubs.

[Walt Starr]

8. They'll probably branch out into Telecom

at which point they overbloat and go bankrupt.

:shrug:

[GoddessOfGuinness]

5. One word

Shit.

[Rex]

10. That will be three Wal-bucks please.

You think I'm kidding?