Recently, Wal-Mart (WMT) has been seeing increased pressure from PriceSmart (PSMT)and other high volume competitors. These competitors are aiming high and closing in fast.

Although Wal-Mart is still a safe investment and analysts are upbeat about general stock performance, don’t underestimate its many competitors, especially as they continue to break into emerging markets in the second and third world. For instance, PriceSmart, the “Costco of South America” is a company that missed earnings expectations, yet still continues to impress investors because of its gutsy decision to implement a thin-margin strategy in an attempt to increase traffic through its doors. Despite the fact that it missed earnings predictions, PriceSmart surpassed revenue forecasts by some $10 million and grew in revenue by 22% last year alone. Revenue growth was not only by expansion, either, but in same-store sales, proving that the gutsy move to drive traffic to stores works.

Competition from other stores is not the only thing Wal-Mart is facing. The company is also facing opposition from individuals who simply do not want the store in their communities. Wal-Mart has seen expansion plans drastically dashed from various communities that have taken a stand against the company, most notably the Washington, DC, area, where six stores were planned to open by 2013. However, the plans were reduced and now only one of the six planned stores will open by the end of 2013. To continue reading, click here.