is walmart really the evil one?

[98valk]

  If you had to pick one company that's done the most to hasten the demise of brick-and-mortar retailers… it would be the world's largest online retailer, Amazon. Take a look at this chart of Amazon's sales versus the sales for the Morgan Stanley Retail Index (an index of 31 national retailers).?


http://www.stansberryresearch.com/growth-stock-wire/3301/Weekend-Edition

[Fritz The Cat]

I can't begin to tell you how many times I've wasted gas and time going to brick and mortar local retailers looking for something specific and failing to find it. On the other hand, i can hit Amazon, find it, order it and it arrived at my door in a few days. And most of the time the shipping is free too.

And also, have you ever asked a local retailer if they can order said item?? Most of the time you'll get a "No" or that will cost you extra.

It wasn't the on line retailers who put the B & M retailers out of business, they shot themselves in the foot by failing to provide there customers with what they needed/wanted.

Here's an example. I regularly bought Betty Crocker Hash Browns in the box. Been eating them for years. All of a sudden they disappeared from all 4 of my local grocery stores. I asked in one store why, the manger told me he didn't know, corp. determined their inventory and there was no way he could special order it for me. Went to Amazon and low and behold, there it was. And considerably cheaper than I've ever seen it. I now order it by the 12 box case.

  I've gotten to where I always hit Amazon when I need something specific. Why should I waste my time and gas searching for something that's just not available locally?

[Xtracho]

Another impact to those retailers is people that come in and shop, find what they want, then go home and order the same thing online. That's what happened to Circuit City and it's now happening to Best Buy. They are expected to close up to 250 stores this year. JC Penney will close up to 350. I don't mourn those retailers for the very same reasons that Fritz mentions above.

[alph]

there's a hoby shop i try to go to when ever i "need" something.  the other day i went to get a new two chanel controler.  he tells me he doesn't have one.  i ask him if i could buy it from him, then have him ship it to my house?  of course he says no, so, i went home and ordered it on line, for the same price he was selling it for.  so, yes, i HATE wally world (i avoid the place like the plague) but sadly the little mom & pop stores can't keep all the inventory on the shelves that people would want.  it's just a sad state for retailers.

[Momz]

Lately I've been buying new motorcycle parts on Amazon. Yes,....really!

Much cheaper than M/C Superstore, Jake Wilson, DLP, Iron Pony, etc. I was very surprized at how much cheaper even with shipping charges.

[hubcapsc]

I get a lot of stuff from Amazon. A great deal of it comes, not from
Amazon, but from mom&pop places whose Internet stores are
Amazon stores... I just looked... bought three things this month, one
from Amazon, two from people with Amazon stores...

-Mike

[Atl-Jerry]

I (almost) always offer a local guy the opportunity to price match in order to keep my business and support the local economy, only once or twice have they accepted the offer.  I often tell them that I am willing to pay more if they can tell me how they are adding value to my purchase, they look perplexed.

At what point did Walmart become evil?  Was it when he added a second store?  A thousand stores?  When he started sell lots of cheap Chinese crap?  They all sell cheap Chinese crap, and we keep buying it!

[MarkT]

Another impact to those retailers is people that come in and shop, find what they want, then go home and order the same thing online. That's what happened to Circuit City and it's now happening to Best Buy. They are expected to close up to 250 stores this year. JC Penney will close up to 350. I don't mourn those retailers for the very same reasons that Fritz mentions above.

I was in sales for years.  Home improvement consultant a long time ago - also some other venues.  Still am, but only sell what I make so more specialized, and now it's customized. Anyway, back in the day, I was a sales manager, and lectured & trained sales people.  We called (privately) such people "sheebs".  Shop Here Buy Elsewhere.  They get the assistance they need from the experts in the store - then rather than pay for their help, they now have the info they need to make their choice, say "I'll be back", then go buy it from walmart (or other discount chain) that hires only clerks who don't know squat.  It costs money to acquire the expertise to advise buyers, and costs money to pay such experts - sales professionals - to assist buyers.  It's buying abuse.  And it puts companies out of business.  And it's a huge problem sales organizations have fought for years.  Another name for "sheebs" is "Be-Backs".  Google it.  If you're in sales - get a piggy bank.  Every time you hear "I'll be back", put in a nickle.  If they actually come back - whether they buy or not - take out a quarter.  After a year (depending on the volume of your business), you'll have enough money to go out for dinner.  My closing average is considerably higher, but like I said - I don't sell other's products, and mine are not available anywhere else.  So folks who come to me are mostly already buyers so this problem isn't one for me.  I do hear Be-backs once in awhile - funny they think sellers believe that line.  But I've dealt with the problem in the past and so won't be a sheeb or a be-back myself.

[G-Man]

Every time you hear "I'll be back", put in a nickle.  If they actually come back - whether they buy or not - take out a quarter.  After a year (depending on the volume of your business), you'll have enough money to go out for dinner.  

If you do acquire enough for dinner, then you're not a very good salesperson.  I was in sales and was always told that if the customer actually comes in to your store and leaves with nothing, then the customer sold you, instead of you selling the customer.   

[Romeo]

Walmart reflects the values of the country, like it or not. It's sad for those of us that put value on personal service, but alas the bottom line for sellers and buyers became god years ago. Doesn't make much sense to pay more for the same product. Like someone said, its all made by the same little asian hands, and that doesn't seem to bother the majority of consumers.

[MarkT]

Every time you hear "I'll be back", put in a nickle.  If they actually come back - whether they buy or not - take out a quarter.  After a year (depending on the volume of your business), you'll have enough money to go out for dinner.  

If you do acquire enough for dinner, then you're not a very good salesperson.  I was in sales and was always told that if the customer actually comes in to your store and leaves with nothing, then the customer sold you, instead of you selling the customer.  

One way to call it, and that's a cute saying.  I know tons of sayings like that - used to be my business to dig them up and use them.  Like I said - I was a sales educator & speaker.  It's a problem endemic to sales, and on the average, there are far more be-backs that don't buy, than do.  And no matter how good you think you are in sales, you are still going to have more be-backs that don't return, than do.  There are lots of variables - so YMMV.  But you are still going to have some be-backs.  Many folks won't buy on the moment as a matter of personal policy - and pushing the close hard is just going to upset them.  In sales, you need to walk that fine line between trying to close the sale and letting them go - if you piss them off, they surely won't be back. If you push really hard - like some car salesmen I've dealt with come to mind - you might close the sale, and find the customer cancelled it the next day or 2, because the customer just got tired of fighting you, and cancelled the sale without your presence.  All that pushing for naught, and now you've made an enemy.  I'll ask for the sale and if it doesn't happen with a simple close, let them go - but that's the nature of what I'm doing.  And I'm not going to detail about it here in any case.

[Jeff K]

Another impact to those retailers is people that come in and shop, find what they want, then go home and order the same thing online. That's what happened to Circuit City and it's now happening to Best Buy. They are expected to close up to 250 stores this year. JC Penney will close up to 350. I don't mourn those retailers for the very same reasons that Fritz mentions above.

I was in sales for years.  Home improvement consultant a long time ago - also some other venues.  Still am, but only sell what I make so more specialized, and now it's customized. Anyway, back in the day, I was a sales manager, and lectured & trained sales people.  We called (privately) such people "sheebs".  Shop Here Buy Elsewhere.  They get the assistance they need from the experts in the store - then rather than pay for their help, they now have the info they need to make their choice, say "I'll be back", then go buy it from walmart (or other discount chain) that hires only clerks who don't know squat.  It costs money to acquire the expertise to advise buyers, and costs money to pay such experts - sales professionals - to assist buyers.  It's buying abuse.  And it puts companies out of business.  And it's a huge problem sales organizations have fought for years.  Another name for "sheebs" is "Be-Backs".  Google it.  If you're in sales - get a piggy bank.  Every time you hear "I'll be back", put in a nickle.  If they actually come back - whether they buy or not - take out a quarter.  After a year (depending on the volume of your business), you'll have enough money to go out for dinner.  My closing average is considerably higher, but like I said - I don't sell other's products, and mine are not available anywhere else.  So folks who come to me are mostly already buyers so this problem isn't one for me.  I do hear Be-backs once in awhile - funny they think sellers believe that line.  But I've dealt with the problem in the past and so won't be a sheeb or a be-back myself.

 I go to a store expecting to find a knowledgeable sales person to help me make a decision on a purchase and they don't know crap. They only know how to ring it up, and up-sell the service contract.   

[MarkT]

Another impact to those retailers is people that come in and shop, find what they want, then go home and order the same thing online. That's what happened to Circuit City and it's now happening to Best Buy. They are expected to close up to 250 stores this year. JC Penney will close up to 350. I don't mourn those retailers for the very same reasons that Fritz mentions above.

I was in sales for years.  Home improvement consultant a long time ago - also some other venues.  Still am, but only sell what I make so more specialized, and now it's customized. Anyway, back in the day, I was a sales manager, and lectured & trained sales people.  We called (privately) such people "sheebs".  Shop Here Buy Elsewhere.  They get the assistance they need from the experts in the store - then rather than pay for their help, they now have the info they need to make their choice, say "I'll be back", then go buy it from walmart (or other discount chain) that hires only clerks who don't know squat.  It costs money to acquire the expertise to advise buyers, and costs money to pay such experts - sales professionals - to assist buyers.  It's buying abuse.  And it puts companies out of business.  And it's a huge problem sales organizations have fought for years.  Another name for "sheebs" is "Be-Backs".  Google it.  If you're in sales - get a piggy bank.  Every time you hear "I'll be back", put in a nickle.  If they actually come back - whether they buy or not - take out a quarter.  After a year (depending on the volume of your business), you'll have enough money to go out for dinner.  My closing average is considerably higher, but like I said - I don't sell other's products, and mine are not available anywhere else.  So folks who come to me are mostly already buyers so this problem isn't one for me.  I do hear Be-backs once in awhile - funny they think sellers believe that line.  But I've dealt with the problem in the past and so won't be a sheeb or a be-back myself.

 I go to a store expecting to find a knowledgeable sales person to help me make a decision on a purchase and they don't know crap. They only know how to ring it up, and up-sell the service contract.  

Indicates to me you're in a store that doesn't have professionals selling what you're buying.  If you're going to shop there, might be a good idea to ask for the dept manager - he'll know much more than the kid with the pants falling off.  Or go to a non-discount store that has experts working there.  I was a home improvement consultant.  I designed HVAC systems, plumbing, kitchens, roofing and siding.  And hit the books until they couldn't ask a question I couldn't answer.  And was paid for my expertise.  Not a minimum wage clerk.

Oh, I should mention, this wasn't the position where I was a sales trainer.  That was a sales manager for West Bend.  Was also a studio manager for Chromalloy Photographic Industries - had to train employees in sales, portrait photography, bookkeeping.

Wearing different hats, has given me a breadth of knowledge that has come in handy since.  e.g. - I can fix pretty much everything on the ranch. Or fab anything I need, tools, custom hydraulic presses, etc.  Or fix other people's stuff if they need that.

[Blues]

 I go to a store expecting to find a knowledgeable sales person to help me make a decision on a purchase and they don't know crap. They only know how to ring it up, and up-sell the service contract.   
[/quote]

Many of the sales staff act knowledgable but are far from it.  I do my research on-line, then find the best price I can... usually from Amazon.  And if I have a choice to actually buy it from Amazon or a smaller M/P store, I will usually go for the smaller one unless differences in cost are large.

[R J]

I'm a be-back person.   If I do go back, I always ask for the sales person I talked to earlier.    To me, that is only fair for his time and effort.

My mind isn't totally made-up when I go in and I go in for more information.

They get pushy with me like a car salesman, and it is usually a kiss-my=a$$ that they receive from me.

I was around car sales people a lot.  My neighbor was a dealer in California and I saw a lot of crap.

He had sales people on the floor, if that person couldn't close the deal, he would pass you on to someone else who had more pushy experience to close the deal.  That continued clear up to him to close a deal if needed.

So, yupper, I'm a be-back, and walk out the door.   

[MarkT]

I go to a store expecting to find a knowledgeable sales person to help me make a decision on a purchase and they don't know crap. They only know how to ring it up, and up-sell the service contract.   

Many of the sales staff act knowledgable but are far from it.  I do my research on-line, then find the best price I can... usually from Amazon.  And if I have a choice to actually buy it from Amazon or a smaller M/P store, I will usually go for the smaller one unless differences in cost are large.

Good for you - supporting the smaller local store.  The internet has really changed our worlds.  I do pretty much the same.  Research on the internet so I'm at least knowledgable, and order it online if I don't need it immediately.  Or go to my local M/P store if they have it.  If not, and I need it now, go into a bigger town to find it - like Denver.  If it's only at Walmart - I'll substitute something or do without or wait for internet delivery.  I NEVER shop at WM.

[MarkT]

I'm a be-back person.   If I do go back, I always ask for the sales person I talked to earlier.    To me, that is only fair for his time and effort.

My mind isn't totally made-up when I go in and I go in for more information.

They get pushy with me like a car salesman, and it is usually a kiss-my=a$$ that they receive from me.

I was around car sales people a lot.  My neighbor was a dealer in California and I saw a lot of crap.

He had sales people on the floor, if that person couldn't close the deal, he would pass you on to someone else who had more pushy experience to close the deal.  That continued clear up to him to close a deal if needed.

So, yupper, I'm a be-back, and walk out the door.  

As I said - some folks never buy on the first call - a matter of policy for them.  To me, that's legitimate - they want to carefully husband their resources, do comparisons, then make their decision offline without the presence of sales pressure.  Salesmen typically aren't going to like this kind of prospect because their experience and training says if they don't sell them now, odds are the prospect is gone for good. More experienced salesmen will work on developing a rapport with his prospects, and sell himself first.  The guy isn't going to buy from you (at least on big ticket items) unless he likes you first.  It's a fine line figuring the right amount to push and recognizing a sleep-on-it as policy buyer, and involves understanding your fellow man.  A tall order for many.  And something you're not likely to see at a car dealership.  More so from real estate agents who work with their clients for a much longer time.  But then they aren't the seller so that's different.  Just an example of someone with an interest in making the sale happen, but works well with clients and understanding their needs.

Car salesmen - as a group - are among the pushiest in sales.  It's the nature of their business.  They know if they don't sell you - you are lost to them.  So they have little to lose by pushing really hard to close the sale.  A smaller percentage are potential repeat customers years later, than in other venues.  I was reading recently on line, through their tactics, just out of curiosity - and to help me deal with them.  Pretty enlightening.  BTW, they HAVE to push - to keep their jobs.  They are evaluated on closing averages - if they fall too far below the norm - they get shown the door.  Of course, YMMV.  So yeah - they probably hear "be-back" more than most salesmen - and you can be sure, they don't believe it.

[Valker]

Just to repost a humorous sales story that was on here years ago:

A young guy from Wisconsin moves to Florida and goes to a big "everything under one roof" department store looking for a job.

The manager says, "Do you have any sales experience?"

The kid says, "Yeah. I was a salesman back in Wisconsin."

Well, the boss liked the kid and gave him the job. "You start tomorrow. I'll come down after we close and see how you did."

His first day on the job was rough, but he got through it. After the store was locked up, the boss came to see him.


"How many customers bought something from you today?"

The kid says, "One."

The boss says "Just one? Our sales people average 20 to 30 customers a day. How much was the sale for?"

The kid says, "$101,237.65".

The boss says, "$101,237.65? What the heck did you sell him?"

The kid says, "First, I sold him a small fish hook. Then I sold him a medium fishhook. Then I sold him a larger fishhook. Then I sold him a new fishing rod.
Then I asked him where he was going fishing, and he said 'down the coast,' so I told him he was going to need a boat, so we went down to the boat department
and I sold him a twin engine Chris Craft. Then he said he didn't think his Honda Civic would pull it, so I took him down to the automotive department and sold
him that 4x4 Expedition."

The boss says, "A guy came in here to buy a fish hook and you sold him a BOAT and a TRUCK? Is that right?"

The kid answers, "No, the guy came in here to buy Tampons for his wife, and I said, 'Dude, your weekend's already shot; you might as well go fishin'.'"

[Hooter]

I (almost) always offer a local guy the opportunity to price match in order to keep my business and support the local economy, only once or twice have they accepted the offer.  I often tell them that I am willing to pay more if they can tell me how they are adding value to my purchase, they look perplexed.

At what point did Walmart become evil?  Was it when he added a second store?  A thousand stores?  When he started sell lots of cheap Chinese crap?  They all sell cheap Chinese crap, and we keep buying it!

Your last sentence is pretty much spot on. I check where "stuff" comes from but sometimes you are forced to support outsourcing. There is too much of it not to. Just sayin.

[ragincajun]

I use Amazon...but not daily.

Got me wondering so I hunted up an old soft drink that I can no longer find (because it's no longer manufactured unfortunately).  So I find a place with ten 12-packs.  Only going for $34/case.  Almost $3 a can (12oz)....I miss it but not that much.

[Mallett]

I can't begin to tell you how many times I've wasted gas and time going to brick and mortar local retailers looking for something specific and failing to find it. On the other hand, i can hit Amazon, find it, order it and it arrived at my door in a few days. And most of the time the shipping is free too.

And also, have you ever asked a local retailer if they can order said item?? Most of the time you'll get a "No" or that will cost you extra.

It wasn't the on line retailers who put the B & M retailers out of business, they shot themselves in the foot by failing to provide there customers with what they needed/wanted.

Here's an example. I regularly bought Betty Crocker Hash Browns in the box. Been eating them for years. All of a sudden they disappeared from all 4 of my local grocery stores. I asked in one store why, the manger told me he didn't know, corp. determined their inventory and there was no way he could special order it for me. Went to Amazon and low and behold, there it was. And considerably cheaper than I've ever seen it. I now order it by the 12 box case.

  I've gotten to where I always hit Amazon when I need something specific. Why should I waste my time and gas searching for something that's just not available locally?


+1

[Mallett]

I use Amazon Prime...pay 80 something dollars a year for free two day shipping. I do try to support my local M & P stores but not the big national chains.....

[scoot]

 I work for a local owned store. We sell and service Sewing machines, both home and commercial. Our largest business is the home machine (98% if I were to guess). Our home machines range from $169.00 to to our top of the line of the 3 brands we carry is about $12,000.
 My boss has invested some pretty good money in all of us for training on any of these machines as well as knowing the products and software to support them.
 One thing that just pisses me off is when somebody will come in and spend 2 or 3 hours asking questions, and get the advice on these machines. Then they say well I have to think about it. 2 months later they call and want to know how to do something on the machine they bought off E-bay or Amazon because they got a better deal. Or they bring it in for service, and I tell them that I charge $60.00 an hour. They say they were told by the person they bought it from it is under warranty, and I tell them to ship it back to them then and let them fix it.
 

[Lyn-Del]

It was a problem before WalMart and eBay.  I am a retired Master Locksmith.  People would come into the store, I would spend as much time as needed to help them determine what they wanted in the way of lock hardware.   I would give them a price, explaining that it was all the hardware, all keyed to the same key for convenience, etc., including up to 2 keys per lock. 

A few days later, the same person would show up with a box full of locks they bought at Builder's Square.  Saved $3 - $5 a lock cylinder, but they weren't keyed alike, so they brought them to me to rekey.  At $7.50 per lock cylinder, plus keys.

Great savings, huh?  At least I got the labor part of the cost, more profit in it than on the hardware.

[north-aurora]

Walmart is not evil because they have a gazillion stores.

Walmart is evil because they make their employees work hard while paying them close to minimum wage and not providing much needed health benefits to them. That is despicable because the stores are highly profitable.

Plus, has anyone noticed that 95% of what they sell is chinese plastic crap.

[Mallett]

Walmart is not evil because they have a gazillion stores.

Walmart is evil because they make their employees work hard while paying them close to minimum wage and not providing much needed health benefits to them. That is despicable because the stores are highly profitable.

Plus, has anyone noticed that 95% of what they sell is chinese plastic crap.

My answer to this is, found you another job if you don't like what you're being paid. Nobody is holding a gun to their head making them stay....95% of what anybody sells is chinese plastic crap...

[north-aurora]

Walmart is not evil because they have a gazillion stores.

Walmart is evil because they make their employees work hard while paying them close to minimum wage and not providing much needed health benefits to them. That is despicable because the stores are highly profitable.

Plus, has anyone noticed that 95% of what they sell is chinese plastic crap.

My answer to this is, found you another job if you don't like what you're being paid. Nobody is holding a gun to their head making them stay....95% of what anybody sells is chinese plastic crap...

True, but not a lot of jobs out there in case you havent noticed.

[Mallett]

Walmart is not evil because they have a gazillion stores.

Walmart is evil because they make their employees work hard while paying them close to minimum wage and not providing much needed health benefits to them. That is despicable because the stores are highly profitable.

Plus, has anyone noticed that 95% of what they sell is chinese plastic crap.

My answer to this is, found you another job if you don't like what you're being paid. Nobody is holding a gun to their head making them stay....95% of what anybody sells is chinese plastic crap...

True, but not a lot of jobs out there in case you havent noticed.

True, was trying to offend anyone....my best advice to anyone is to learn a trade...there will always be service type work....they can't send that overseas...

[MarkT]

Walmart is not evil because they have a gazillion stores.

Walmart is evil because they make their employees work hard while paying them close to minimum wage and not providing much needed health benefits to them. That is despicable because the stores are highly profitable.

Plus, has anyone noticed that 95% of what they sell is chinese plastic crap.

My answer to this is, found you another job if you don't like what you're being paid. Nobody is holding a gun to their head making them stay....95% of what anybody sells is chinese plastic crap...

True, but not a lot of jobs out there in case you havent noticed.

Which when you have bills to pay and kids to feed, amounts to a gun to your head.  Not to mention, walmart is responsible for a good percentage of the jobs being gone, with their predatory practices killing small-town America M/P shops and entire town centers.

[old2soon]

Here where i live(Willow Springs Mo.)we DO NOT have a Wal Mart in town nor just out of town. What we do have is an Alco(most generally higher per item than Wal Mart)and a Dollar General. While wally worlds quality is not the highest  it is steps above Dollar General. I was going to purchase my D/S choice of tire from wally world. My online price and the wally world price were both $80.00 each. Wally World wanted taxes AND a tire disposal fee. My online purchase got the tire AND delivery to my lacasa for the $80.00. Saving like $15.00-NOT a hard choice. Comes down to really-my money and i'll spend it as i see fit.  RIDE SAFE.

[Valker]

I never have understood _______________ bashing (insert your most/least favorite retailer). If other people didn't spend a lot of money there, they would be out of business. These stores are meeting a need (real or perceived) of customers.
I worked at WalMart when I needed a job badly. I knew up front how much I'd be paid and how many hours I'd get. I knew there were no benefits at my level. There were zero benefits at the job I had before that. When I found a job that was better for me (three years) I moved on from WM.
Same bashing happens for fast food places, but there sure are a lot of people eating at these. I just choose which ones get my money.

[Mallett]

I never have understood _______________ bashing (insert your most/least favorite retailer). If other people didn't spend a lot of money there, they would be out of business. These stores are meeting a need (real or perceived) of customers.
I worked at WalMart when I needed a job badly. I knew up front how much I'd be paid and how many hours I'd get. I knew there were no benefits at my level. There were zero benefits at the job I had before that. When I found a job that was better for me (three years) I moved on from WM.
Same bashing happens for fast food places, but there sure are a lot of people eating at these. I just choose which ones get my money.

+1
My first job was at Burger Chef 1966....I made 45 cents an hour....I moved on to but was thankful for that job when I had it tho......

[Tropic traveler]

The other side of the Wal-Mart coin.
Think people, think.
Interesting article.
===========================================================================
ITS MONOLITHIC TICKY-TACKY BOXES LITTER THE countryside, destroying all that is good: the local butcher, greengrocer, and neighborhood bakery. By oppressing workers and squeezing suppliers dry, Wal-Mart drives out small, friendly shops, undermining livable communities and living wages.

Or that’s what the activists would have you believe.

Around the country, the anti-Wal-Mart movement continues to gather steam, making its way into new legislation and Democratic congressional campaigns. Community crusaders, union activists, and liberal politicians have joined together to oppose the latest corporation to “oppress” us. Through a flurry of zoning restrictions and targeted laws, the Lilliputians hope to tie the giant down, or at least hamstring him.

Wal-Mart has become a lightning rod for Americans’ latent suspicions about capitalism. For a country of capitalists, we have always had an ambivalent relationship with the progeny of laissez-faire, from Standard Oil to Microsoft. Simply by offering people what they want — low prices, wide selection, and decent products — the Beast from Bentonville has become this generation’s corporate bête noire.

So activists pamphlet, picket, and legislate against Wal-Mart. Meanwhile, Wal-Mart shoppers are voting with their feet. Despite having the aesthetic appeal of a disorderly warehouse, Wal-Mart offers impoverished (and not-so-impoverished) people a way to lift their standard of living.

The average American family saves $2,300 a year by shopping at Wal-Mart. In fact, because of its relentless drive to lower costs, Wal-Mart may be America’s single greatest anti-poverty program. In terms of groceries alone, a study by MIT economist Jerry Hausman found that Wal-Mart’s low prices increase poor families’ effective household income by 6.5 percent. Other studies have found that when a Wal-Mart opens, its mere presence drives down prices in an area by 10-15 percent. Wal-Mart saves U.S. consumers more than $200 billion a year; compare that to the federal government’s $33 billion food-stamp program.

DOES WAL-MART HURT ITS EMPLOYEES?

The behemoth’s workers benefit as much as consumers do — even apart from the fact that many of its workers shop where they work, and can therefore buy vastly more for their wages than if Wal-Mart didn’t exist.

Although Wal-Mart workers, like all of us, would surely prefer higher wages and better benefits, they too, have voted with their feet, by choosing to work at Wal- Mart. It’s hard to claim that a corporation oppresses its employees when 11,000 people apply for 300 positions there, as happened when a Wal-Mart recently opened near Chicago. If Wal-Mart were truly undervaluing employees’ labor, people wouldn’t line up for the jobs it offers.

Is it fair that many people are so poor that they flock to the chance to work, or shop, at Wal-Mart? No. But legislating against Wal-Mart doesn’t do anything to alleviate the unfairness of poverty. Quite the opposite: it deprives the poor of access to jobs and low prices. Poverty is endemic, but Wal-Mart actually helps address this unfairness by making its customers and workers richer than they would otherwise be.

On the other hand, excluding Wal-Mart exacerbates inequality by forcing everyone, including the poor, to pay for the luxury of local shops. The thoughtless “Wake Up Wal-Mart” campaign accuses the retailer both of “hurting other businesses when it comes to town” — through its low prices — and of harming the poor through low wages (which seem to be higher than those offered by the existing stores). Somehow the contradiction between protecting expensive local shops and helping the poor escapes these activists.

With similar obliviousness, many activists sympathize with Wal-Mart’s suppliers, who are allegedly coerced into selling their products to Wal-Mart at too-low prices. In what other context would leftists protest lower prices — the equivalent of higher wages — in order to help “corporations” preserve their profits?

Curiously enough, these community guardians don’t trust their fellow citizens to recognize the merits of the local grocery store. Every time Wal-Mart opens a Supercenter, it has to win over every single customer who passes through its doors. A Wal-Mart can lure people away from where they used to shop only if it gives them something better — or cheaper. So Wal-Mart opponents try to replace the quasi-democracy of the market – where customers or workers can “vote” Wal-Mart out of business by refusing to shop or work there – with zoning restrictions imposed by planning councils or town referenda. As the Wal-Mart Watch “battleplan” proclaims, “the whole fight comes down to winning a majority vote on the planning board of the city council.”

THE WRONG KIND OF DEMOCRACY

Unfortunately, political interventionism empowers economically illiterate voters, and equally ignorant politicians. The same consumers and workers who benefit from Wal-Mart when they shop or work there don’t necessarily understand how capitalism functions. Most people have only a limited knowledge of economics, and overlook the indirect consequences of meddling with the market. In this case, voters are tempted to simply order the retailer to pay its employees more, ignoring the effect of artificially high wages on employment and prices.

Moreover, political restrictions on Wal-Mart necessarily imposse a winner-takes-all outcome on poor and rich alike. In a referendum, 51 percent of the electorate can inflict its fears on everyone else. Markets, in contrast, satisfy a wide range of desires. If most people prefer intimate local stores, then they can shop there — if they’re willing to pay higher prices. The minority gets to shop at Wal-Mart — if they’re willing to tolerate the flourescent lighting.

But let’s not paint a utopian picture of Wal-Mart. It confers its immense benefits on consumers and employees by out-competing other retailers, which hurts those stores’ owners and employees (at least if the employees are earning more than they would at Wal-Mart, which usually isn’t the case). Although many smaller retailers thrive in Wal-Mart’s shadow by offering something that Wal-Mart doesn’t, like higher-quality products or a friendly atmosphere, most retailers can’t compete with Wal-Mart on price.

Nor could horse-drawn buggies compete with cars, or plasterers with drywall. Such is the nature of capitalism: “more, better, and faster” renders “less, worse, and slower” obsolete, because “more, better, and faster” helps more consumers and employees. As cold-hearted as it sounds, capitalism’s “creative destruction” harms the people who are suddenly unemployed only by benefitting everyone else. We can transport ourselves faster with cars, build better houses with drywall, and buy cheaper goods at Wal-Mart.

Alternatively, anti-Wal-Mart activists might argue that the whole ethos of materialist progress is spiritually vacuous or emotionally unfulfilling. Perhaps materialism is just a hedonistic treadmill; maybe a simpler, slower, poorer life would make us happier. That critique of Wal-Mart, however, demands the rejection of the whole modern world, not just the world of big-box retailers. The problem — if it is a problem — is neither Wal-Mart, nor capitalism, but our own materialistic desires. And the solution is not political. It is withdrawal from the economic maelstrom — an option open to anyone who doesn’t care about material comforts.

Few anti-Wal-Mart activists hold such radical convictions. They aren’t living out at Walden Pond. They partake of the same consumerist world as the rest of us, and rail against “corporations” like Wal-Mart not on the grounds that corporations cater too well to unhealthy appetites — but on the grounds that they don’t cater to them well enough. Thus, they charge Wal-Mart, and implicitly capitalism, with inhibiting our quest for material goods (by underpaying workers, etc.). This charge flies in the face of all experience of capitalism, ever since it unleashed on the world the luxuries most of us now take for granted. As Adam Smith noted, the butcher and baker do a very good job of giving customers what they want, and by doing so, the butcher and baker (and the Wal-Mart “associate”) improve their wages.

Although anti-Wal-Mart crusaders think they are defending the poor against low-paying jobs, they miss the fact that low-paying jobs are better than the alternative: no jobs or even worse-paying ones. Forcing Wal-Mart to raise its wages or offer more expensive health-care benefits means forcing up its prices. That, in turn, hurts poor consumers, diminishes Wal-Mart’s competitive advantage, and thus depresses its ability to employ more people. It does the poor little good to mandate high wages and benefits if it means that fewer jobs will be available, and that the prices paid by those with jobs will be higher.

If they remain unconvinced, Wal-Mart’s opponents should relax. What the market gives, the market will eventually take away; sooner or later, the giant will stumble, and a superior competitor will emerge, offering even lower prices or better service. Until then, however, Wal-Mart will continue to succeed only if it gives consumers and workers the goods and the jobs that, in the real world of scarcity and unemployment, they want.



Piotr Brzezinski.
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[MarkT]

Well written article, no doubt sponsored by walmart.  Doesn't change my mind.  walmart will never see any of my money.  And I'm about as far from the left as you can get.  The company is simply evil, as are their practices and their governing board.  And they drain the money from YOUR local economy and send it to Bentonville.  I've seen them kill too many small towns in my travels.  And their economic power in so many industries means they get to dictate taste - Google walmart and music or walmart and videos.  They are censoring what you get to consume.  Then their spitting in the face of women's rights...  Not to mention you and I are paying for their employee's health care, when they have to get it from welfare or the emergency room. Man I could go on and on I'm stopping.

[north-aurora]

 We  have a supermarket here called Woodmans.  It is  from  Wisconsin and employee owned,  the prices are great  and the people are friendly. I  will go there any day over  Walmart,  and I am not  an activist against  Walmart,  just don't like them,  and they are eeeeeeviiiiil. 

Wall  drug on the other hand I  like. 5c  coffee and awesome donuts.  Yum. 

[MarkT]

I've been to Woodman's many times - family in WI, I get back there about twice a year.  Good store.

[sugerbear]

been shopping for a new dslr.  drove myself crazy on line reading everything i could. musta gone to a hundred camera sales places online.

i got so confused, i finally got off my a$$ and went to a very reputable dealer here in St Louis (Creve Coeur camera). talked to a salesman for about an hour. he had everything in stock. was looking at a cannon t4i, nikon d3200. the saleman suggested i look at a sony a57. you know IT was exactly what i was looking for and had never heard of it before going to cccamera. price was the same as on line. even picked up a used lens (beercan) for a very good price. turns out the expert advice was free, AND got what i wanted.
they have a customer for life.

oh it also included a free class on using the new camera

[MCRIDER]

I (almost) always offer a local guy the opportunity to price match in order to keep my business and support the local economy, only once or twice have they accepted the offer. 
When he started sell lots of cheap Chinese crap?  They all sell cheap Chinese crap, and we keep buying it!

Like Harbor Freight?

[MP]

Walmart forces no one to buy at their store.  If you do not want to shop there, for whatever reason, don't.

It is ONLY because a vast majority of the consumers in the US LIKE Walmart, that is succeeds.  If the consumers did not buy there, they would not exist.

Americans have voted, with their feet and their dollars, on Walmart.

Prices are good.  Quality?  All goods everywhere are usually poor.

I think the biggest attraction, besides prices, is convenience.    If all stores were small mom and pop type, you would need to go to a grocery store, probably two or three small ones to get everything.  A hardware store, a pharmacy, a store to buy general stuff. A restaurant to eat. Etc.

By the time you fought for parking, walked to about 4-6 different stores, etc, you would take  ALL DAY to buy what you can get a Wally World in an hour or so.

I LOVE going to small, speciality stores.  I do wish there was more of them. 

However, for day to day shopping, it is obvious that US consumers LIKE Walmart, and what it offers.

Why should we blame Walmart for offering what consumers want?

MP

[Xtracho]

Bashing Wal-Mart as evil is just poppycock. Anyone can Google any corporation and come up with some dirt....credible or not. Fact is, retailing has evolved. Niche retailers are strained because "big-box" retailers have a business model that corresponds to the buying habits of the overwhelming majority of consumers. And those same "big-box" retailers are under stress because of the strong presence of online purchasing. Witness my previous post about Circuit City, Best Buy, and JC Penney. However I'm sure someone will come along and claim the "evil corporate presence" of Wal-Mart is the reason for their problems as well.

The notion that Wal-Mart exists to destroy "small town america" is just absurd. Wal-Mart's goal, as a publicly held company, is to provide the best investment for its shareholders and turn a profit; and either pay dividends or enhance shareholder value. There is no one at corporate HQ in Bentonville that wakes up in the morning wondering how they can continue destroying small town. If the indirect result of their existence means the closing down of some smaller businesses....well you know folks....that's just business. Evolve, adapt, or die. Consumers, as a whole, have very little loyalty when it comes to their pocketbooks or budget. They have a choice and when they make those choices one business wins while the other loses. It's called Capitalism.