Wal-Mart, Driving Workers and Supermarkets Crazy

NYTIMES ^ | 10-19-03 | STEVEN GREENHOUSE

[Pikamax]

October 19, 2003 Wal-Mart, Driving Workers and Supermarkets Crazy By STEVEN GREENHOUSE

n February Wal-Mart will open its first grocery supercenter in California, offering everything from tires to prime meats, and that could be a blessing for middle-class consumers. The reason is simple: Wal-Mart's prices are 14 percent lower than its competitors', according to a study by the investment bank UBS Warburg.

But not everyone is rejoicing about Wal-Mart's five-year plan to open 40 supercenters in California, stores combining general merchandise and groceries that are expected to gobble up $3.2 billion in sales. California's three largest supermarket chains, Ralphs, Vons and Albertsons, are scared, and so are tens of thousands of supermarket workers whose union contracts have put them solidly in the middle class. The three grocers' fears of fierce competition from Wal-Mart and their related drive to cut costs are widely seen as the main reason behind the week-old strike by 70,000 workers at 859 supermarkets in Southern California.

Wal-Mart has already helped push more than two dozen national supermarket chains into bankruptcy over the past decade. That list includes names like Grand Union; Bruno's, once Alabama's largest supermarket chain; and Homeland Stores, formerly Oklahoma's largest. And unionized supermarket workers fear that Wal-Mart's invasion will oust them from the middle class by pulling down their wages and benefits, which, taken together, are more than 50 percent higher than those of Wal-Mart workers. At Wal-Mart, the average wage is about $8.50 an hour, compared with $13 at unionized supermarkets.

"Wal-Mart's superstores are going to have a devastating impact on California's supermarkets," said Burt Flickinger III, a retailing consultant, noting that union wages and prices are higher in California than in most of the country.

[A CA Guy]

Pssssssssst, these stores only have a 1% profit and will go down like a ton of bricks with Wal Mart markets.

[fishbabe]

sounds like a movie the butchers in my store would LOVE!!!!!!!!!!

[nmh]

"Pssssssssst, these stores only have a 1% profit and will go down like a ton of bricks with Wal Mart markets."

Their profit is higher than that BUT it is low. They make it up in volume.

[fishbabe]

i have 2 customers at my seafood dept that are checkers at a wal-mart superstore..remember the stories you heard about rat turds in hot dogs,well the stories they tell me make rat turds seem tame...i DON'T buy any fresh product at wal-mart!!!!!!!

[A CA Guy]

I thought so to, but then there was the story of the amount they made in profit and it was around 1% of the value of all their entire assets.

They could do better liquidating these companies and getting 1.5% CDs.

They are not doing real well at all, though buying Stater Brother stock short term could be a wise move.

[mt tom]

i agree with you on the poultry and beef at 8.00 hr but do a little investigating i will not buy chicken processed by tyson now tyson has bought many beef/pork processing plants and look at the incidents of e-coli the TRIPOTUS big sponsor

[Radix]

Back in the days when I was still a virgin to the FR.com, I would on occasion take a peek at this site. I have not actually been there in some time. It has been at the very least a year, and likely it has been much longer. This thread tonight has caused me to reflect a bit on my surfs from days gone by. I went to the site of that link solely for the purpose of posting it's hyper link. That is my story, and I am sticking to it. Enjoy the link, and the potential there on other portions of that crazy web site.  

 

I think that the guy running this site is a nut, but, I like to look at things. I look, I then reflect, and after a time I make my conclusions. 

[malia]

Wal-Marts First Lady

[A CA Guy]

Checked, Stater Bros. is privately held, so this 600% increase in business is staying in house.

[Radix]

Absolutely nobody made decent wages in the supermarkets then.

Supermarkets almost exclusively deal with cash, then, as well as now. They tend to pay their bills slowly, and that is not without motive. There are few industries that deal in such large amounts of money. Even banks do not see the actual cash that grocery stores handle regularly. Supermarkets are about big money.

People buy their food with real money. Always watch the money. There you will find the motive, for all behaviour.

I have no problem with it. Capitlaism works, and that is an indisputable fact, IMHO!

[Radix]

TY

[Radix]

I just read all that you said in your post. I tend to post rashly sometimes,and not actually read all that is there before I comment. Actually I do that more often than not.

You are funny. You should come over to the Canteen for a peek, and a contribution sometime. We could use few new and good entertainers. Bob Hope is dead, but hope is forever.

Please consider it.

[Radix]

Pssssssssst, these stores only have a 1% profit and will go down like a ton of bricks with Wal Mart markets.

If you believe that first "fact" then I submit that you are a candidate for buying a bridge in Brooklyn.

As for the latter part of your post, you might be a genius.

[Dianna]

trust me,a lot of them are rubbing their hands thru their hair and blowing their noses and NOT washing their hands...after what i've seen,i'm surprised more of us haven't died from the food we eat....

You're going to find that everywhere you go. I've shopped at a super wal-mart and found it no different than any other grocery store except it's more convenient to get everything I need in one place and the prices are better.

The two stores closest to me suck (one's prices are too high and the other store is tiny). I drive 30 minutes to go grocery shopping! When I get there, I find horribly slow employees. They put one cold thing in every damn bag after taking their sweet time.

And now they're trying to con me into checking my own stuff! I had a manager take me by the arm to show me "how easy and quick" it is to check out my own groceries. Oh yeah, how much of a discount do I get since you aren't paying a checker or a bagger now? None? I asked her if she thought I was a fool that I would want to encourage this.

[A CA Guy]

I got the information from print and radio. What I remember was the profit was in the many millions which represented only about a 1% profit for the year.

The second part I investigated and Stater is privately owned. So the big payoff stay among the ownership.

[BJungNan]

So the Union is demanding higher wages,, is that why they're on strike?

What is at stake for the union is the desire by the companies to set a two-tier wage rate: new hires start at a lower starting rate of pay. Union leadership do not like this even if it leaves present employees unaffected.

Employees striking on this issue are taking a big stand for the union.

[BJungNan]

You have to ask yourself if you really think a courtesy clerk, checker, dairy stocker, or anyone else in a similar job really *deserves* $26+/hr compensation

How much of the take home pay goes to taxes, social security, unemployment insurance, state disability insurance, local income taxes, sales taxes, gasoline taxes (gasoline in California still at $2.00 per gallon), utility taxes, a California rent or mortgage.

Today, $13.00 an hour does not go far.

Gross pay 2253
Payroll deductions 337.95
Monthly take home 1915.05

LESS
Rent/mortgage 900
Food 500
Car Ins 120
Car Payment 270
electricity 120
Other 300
Montly exp 2210
Total -294.95

How were you saying they should get along on $8.50 an hour?

[Kay Soze]

Gelsons!

When I lived in West Lake Village I shopped at Gelsons.

I am in the food Biz and when I have visitors from Japan, Korea and China I always take 'em to a Gelsons when in So Cal.

[BJungNan]

I live in California, and I am witnessing an interesting phenomenon. Very, Very few people are crossing the picket lines and are instead suffering long lines at Stater Brothers...

Yea, and I hope the strike is over soon so you guys can all go back to your Vons, or Ralphs or Albertsons. Stater Bros was just fine until ya all showed up.

Some nit in front of me was complaining he did not get his club card discount.

The stupid marketing programs some people trouble themselves with just so they can think they are getting a discount that anyone can get just by giving the cashier a phone number - any phone number.

[luckydevi]

Damn those Ceo's for wanting to make more money.