Does Wal-Mart Destroy Communities?

Club For Growth ^ | [Posted May 31, 2004] | William L. Anderson

[Alberta's Child]

Having worked for some time in a clothing-related industry when I was in high school, I learned at a fairly young age that the label "Made in the USA" is largely meaningless. There are two reasons for this:

1. Just last week, there was an article posted here about sweatshops in U.S. possessions in the South Pacific (Saipan, Guam, etc.) that only exist to provide textiles for sale in the U.S. The people who work in these sweatshops are no better off than those who work in China or Mexico, but because the factory where they work their 16-hour shifts for 25 cents an hour is in a "U.S. possession," the manufacturer who produces these goods can put a "Made in the USA" tag on their garments just to fool an American buyer who thinks he's keeping a South Carolina textile mill open.

2. Tags that identify the nation of origin of a product usually only identify the point of final assembly. A jacket that is 95% made in China is still considered "Made in the USA" if the buttons are sewn onto it here in the U.S.

[abigkahuna]

Talk about mom and pop and profit margins. A big misnomer. Most mom and pops do not know how to buy wholesale and sell retail. Profit margins are many times less than 30 percent. I have known margins of less than 7 percent (but thats on the wholesale end)

It of course depends on the item being sold and the perceived value. There is a lot of market psychology out here.

Wal Mart of course does operate on lower profit margins, lower than mom and pops because its wholesale prices are less to begin with. I have known businesses being put out of business on the wholesale ed because of Wal Mart reneging on contracts over pennies.

I shop at Wal Mart. I do not regard them as evil. But some of their business practices are cut throat to say the least.

To get back to the Mom and Pops. If Wal Mart can buy 200K units for its store, its going to get a price substantially lower than the local store that can only buy say 20 units. Hence from the get go the wholesale price is lower for Wal Mart and its pricing is reflected against that of the local store. Is that evil? No, but its very frustrating for someone that has products in competition with Wal Mart.

[Willie Green]

History has proven the Sear's catalog to have been more useful as toilet paper than as a marketing medium.

Afterall, it isn't just coincidence that Sears began to downsize its catalog when Mr. Whipple gained popularity as a television icon.

[No Blue States]

Maybe if those same smaller shops could carve out a niche of customers by offering something scarce at Walmart (good service), they might find profits.

Sometimes I think of a small business plan such as on ebay, but the competition is so fierce it seems impossible to make a profit...so I fight the traffic and come to this job.

Even if one made something unique that will turn a profit the copycats would be on it like flies on roadkill.

[MJemison]

Actually, farmland is not "graded" at all; it is tilled which does not affect the natural grade. The best farmland is good, stable, well-drained areas not prone to flooding and easily accessible. These are the same desirable qualities that many builders look for, especially in rural areas where there are no public utilities, such as sewer; septic systems must drain well.

Also, I think the "skipped" generation in rural areas is more likely due to reasons very different from those that affect urban and suburban areas. Rural jobs and lifestyles for example are vastly different than those in the more "cosmopolitan" areas. While I definintely would not blame Wal-Mart and other mall-type shopping centers for negative changes, I am only saying they have a questionable impact on these communities.

[Huck]

Given this self indulgent stance towards purchasing

Clothing oneself is self indulgent? Get a grip.

[.cnI redruM]

The really funny thing about it is that all the anti-Wal-Mart ranting is probably improving their sales. Until I read something like this, I don't think too much about Wal-Mart one way or the other. That means if any business carrying an item is closer to my house than Wal-Mart, that's where I'm going....

Perhaps not now. I might buy my next load of groceries at Wal-Mart out of spite.

[bfree]

I read your article and if your whole argument is based on this biased, semi hatchet job, no wonder you don't truly understand.
BTW, why do you take this article as gospel?

[xsrdx]

As a veteran Wal Mart shopper, I've watched Wal Mart grow from a relatively low key competitor to KMart and Target, into the world's largest company.

I shop the heck out of Wal Mart, but over the past 5 years the quality of Wal Mart's merchandise has steadily declined as they relentlessy increase pressure on suppliers to cut costs.

In the past, I would have considered buying a TV or carseat from Wal Mart, but these days I'd go to Target or Best Buy instead.

Wal Mart is moving steadily downmarket, but they still rule the roost for most of the non-durable consumer goods I use every day.

[af_vet_rr]

Purchasing low-priced goods from abroad, which puts American workers out of jobs

...and which the "American workers" turn right around and buy from Wal-Mart.

We are our own worst enemy

. It's not all Wal-Mart's fault - part of it can be laid to blame on the government. I think if how things are imported/exported and the taxes/duties involved were changed, you might see a shift the other way.

Heck, look at the foreign car companies that are building their cars here while "American" car companies are building abroad. Something is really screwed up when this happens, and the "American" car companies say they can't afford to build here.

As far as Wal-Mart...well, there is also the aspect that a portion of the money spent there goes back to China, which is not a good thing. The other big problem, everybody who says they like Wal-Mart, when asked if they would mind one being built very close by, probably would answer no ;-)

[xsrdx]

This bothers me.

I shop Wal Mart for stuff that gets used - diapers, motor oil, paper products, light bulbs, fertilizer.

For durable goods, or semi-durable stuff that you intend to keep for awhile, Wal Mart is not always the best choice as they've forced suppliers to cut costs so dramatically, anything you buy there will be made as cheaply as possible, for the most part.

[Conspiracy Guy]

Retail is retail. But there are too many Walmarts.

[Conspiracy Guy]

Sorry it was just banter. WalMart is not evil. I just don't shop there. Locally the stores will be full with 2 registers open. I gave up years ago after laying stuff down and walking out. I have a Type A personality and waiting is not my forte when money is to be spent.

People just get so sensitive about WalMart.

Friends?

[Conspiracy Guy]

Hardly any anymore. My Ford truck has a Japanese engine and a French transmission. But it was the low price consumer that drove this process.

[Conspiracy Guy]

I buy Brazilian goods.

[Conspiracy Guy]

I buy Inca goods.

[Conspiracy Guy]

Mom and pop would do the same. After all they are mom and pop.

[Conspiracy Guy]

Most are but I saw some in Lowes made in China.

[Conspiracy Guy]

Their is a city in Singapore named USA.

[HungarianGypsy]

In my area Wal-Mart has taken over a few malls that were already bust. With the extra retail -- instead of a vacant building -- property values went up in those areas.
One of the first Supercenters in the area (also one that was protested against, but put up) now produces one of the highest revenues because of the businesses that also built around it. The area is being considered a model for the rest of the city, since it's doing better than a lot of the malls and was not tax-funded.