Next time you hear someone complain about how Walmart drives out all business, and creates an untenable business environment, point out this lovely article:

Target recognized that price trumped style in every Wal-Mart decision, creating a bland, albeit low-priced offering. So Target reinvented its store appearance, advertising, merchandising processes and vendors to offer discount-shoppers stylish merchandise. "Shabby-chic" discount and department store shoppers flocked to Target.
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The numbers are in. Best Buy, Target and Penny's performed well in a slow Christmas season. Wal-Mart's 1.6 percent increase in same-store revenue was its worst ever, continuing a slide that started in 2001.

We can't fault Wal-Mart for trying to attract new customers and new purchases from the millions of existing customers. But were these Wal-Mart's best moves?

Price isn't everything folks.  People are often willing to pay extra for quality, or sometimes just style.  Wal-Mart fills an important market, for people who can't afford better quality or style... but just because something is cheap doesn't mean everyone will want it.

It is in fact possible to compete with Wal-Mart and win... you just have to figure out the write combination, which several stores have done.  It's called a free market... and it actually does work.