Wal-Mart has turned the markets upside down. Manufacturers could set their prices. Now, the retailers demand low prices from suppliers or the items won't be carried. THe net result is that manufacturers and suppliers must locate overseas or have ridiculusly low wages in the U.S. Either way, the low Wal-Mart prices are needed because lower labor costs means less income to workers which restricts their buying habits to cheaper merchandise. Wal Marts low prices are a necessity for many communities because customers don't have extra cash left that they can pass on to higher end retailers.
Wal-Mart's low prices are needed by low wage earners. By forcing down wages by dictating loer prices to manufacturers and suppliers, Wal-Mart has created a captive market of low wage earners that can't afford to shop for higher priced goods.