COMMENTARY: Walmart Adds an Asterisk
Issue: Wal-Mart adopts a new logo
Commentary by: David Vinjamuri (additional commentary on Fox Business News)
It must be a slow week when a corporate logo change makes news, but that’s where we find ourselves with Walmart as it changes its logo for the first time in sixteen years.
The new logo has three distinguishing points from the old: first it removes the star that separated the ‘Wal’ from ‘Mart’ (a hyphen predated the star). Secondly, the new logo uses upper and lower case where all previous logos were all-caps. Finally, the new logo ads a starburst (or a six-pointed asterisk as we see it) at the end of the logo.
Wal-Mart’s press release sounds almost defensive on the logo update:
This update to the logo is simply a reflection of the refresh taking place inside our stores and our renewed sense of purpose to help people save money so they can live better.
This begs the question of the underlying brand strategy - what is Walmart hoping to accomplish? The answer seems regrettably clear. Walmart is in a strong competitive position given the downturn of the economy. They are using the opportunity to try to take market share from their competitors. Walmart believes that it “owns” working class families - they are value shoppers who are very loyal to Walmart. So the new logo, new tagline, new outfits for employees and freshened store layouts reflect Walmart’s desire to lure upscale customers from Target.
This is a reasonable goal but Walmart is pursuing it in the wrong way. The new logo with a six pointed star at the end (which bears an unfortunate resemblance to an asterisk) reminds us of nothing as much as Target’s logo with the bullseye. The new slogan: “Save Money. Live Better” does have the advantage of reaching an end benefit. But compare it to “Always Low Prices” and you’ll see that it again positions Walmart against Target’s lifestyle marketing.
To be successful, Walmart must stand for working families and focus on offering good products at the lowest everyday prices. When Walmart walks away from this mission it does so at its peril.
Walmart may replace logos and slogans but it should not replace the important mission it created - one which lifted the standard of living for millions of middle class families around the U.S.
Branding Bottom Line: Walmart gets a nice new logo *
* (but it reminds us a lot of Target)
July 14th, 2008 at 12:59 am
history shows changing logos is not a mantra to get more success only better service helps.
July 18th, 2008 at 10:42 am
I can definitely see a rebranding strategy failing for Walmart*. I think with the bad economy in the US, it is actually a really poor decision to position yourself as a store that sells mid-price items. People really do want low low prices during this time of hardship, and are willing to forgo a lot of the “lifestyle” type products in favor of the bread and butter git er done! mentality.
July 22nd, 2008 at 4:38 pm
I’m not a Walmart fan by any means, but don’t underestimate them.
I see this new logo as a “kinder, gentler” Walmart that is attempting to be perceived as friendlier.
I do agree that the new tagline dilutes their incredibly strong “Always Low Prices” position, however.
The bottom line is that Walmart is here to stay. They are the behemoth oil-tanker that takes forever to change direction but they are doing it. Take for instance the green movement and one small example: organic cotton. Walmart is now (I believe) the largest purchaser in the world of organic cotton. Their scale and market strength is frightening.
October 6th, 2008 at 11:04 pm
I like the fresher look - I didn’t think it was an asterisk - asterisks are usually smaller and superscripted.
My first thought was that they wanted to go to the simpler “no hypen” because that’s what their website is “walmart.com” - but I typed in “wal-mart.com” and it redirects to the same page . . .so no real practical benefit of removing the hyphen although hyphens are going the way of commas (in dates . . “Oct 26 . 2008″) or colons in some biblical references (John 3:16 is now John 3.16) - so maybe the hyphen is so 1990!
Even after all this “change” (this is October - months after the new logo launch) - then why is the new logo not on their website???? It is even sprinkled through the site in graphics and photos but not in the header? I don’t understand.