Replies

I don't know that I'd go so far as to say it's bad for the country OVERALL, once all factors are weighed, but to pretend that the rosy scenario painted in this article is an accurate portrayal of the whole is utter nonsense.

For while businesses do spring up around Wal-Mart and people can buy a larger quantity of products due to Wal-Mart's lower prices, every single one of the negatives that the author lists, then dismisses as if with a magic wand, is absolutely true, as you point out in your post. People who claim otherwise, who try to convince everyone that Wal-Mart is nothing but positive, base their views on selective perception, ignorance, or a combination of the two.

Also note this: Pay attention to the "boutique" businesses that pop up to differentiate themselves. Wal-Mart does. And the moment those niches start to become widely accepted and dependably profitable, Wal-Mart will step in and take them, too. Of course, Mom and Pop can just pack up and hustle down the street to a different boutique, right? Yeah, right.

MM

Holy toledo, you would think that Walmart has singlehandily destroyed the American economy. Have you seen Walmarts stock price lately? It's down. Do you really think private enterprise is BAD for the economy? Are low prices and the shoppers who shop at Walmart just part of the evil Red China plot to destroy America?

Competition. Capitalism. They go hand in hand.

And the moment those niches start to become widely accepted and dependably profitable, Wal-Mart will step in and take them, too.

Sorry haven't seen any of Mom and Pop "specialty" stores close as a result of Walmart but I'll be watching. Besides, Mom and Pop don't pay so well either and since they don't employ that many people they are a small business and they don't have to comply with the same labor laws as does Walmart. Funny I don't hear about people complaining about workers working "off the books" while they collect seasonal unemployment. One could make the case that these workers are expecting Walmart employees to pick up their share of taxes while they do jobs on a "cash only" basis.

Wal-Mart does. And the moment those niches start to become widely accepted and dependably profitable, Wal-Mart will step in and take them, too.

There's one thing that Wal-Mart absolutely cannot compete on: expertise of sales staff. If you sell something that's fairly complicated and requires a lot of knowledge to buy correctly, your customers will get appreciated added value by having an expert sales staff present.

Flat panel TVs are a good example. My mom's looking for a flat-panel and the staff at the Wal-Mart couldn't address any of her questions, such as the high-altitude problem with most plasma sets she'd heard about, or the differing types of HDTV and what they mean, etc. She thought there was a choice between HDTV and plasma, and the Wal-mart staff couldn't help her at all with this misconception. My mom asked me, so I gave her an overview of the technology and terms, and told her to go to a specialized store with knowledgeable staff to complete the purchase. You do not want the quality of your $4,000 purchase to hinge on the knowledge of a minimum wage Wal-Mart employee.

Of course that brings a side question of mine. Why do they even sell sea-level plasma TVs in a town at 6,500 feet?

"I don't know that I'd go so far as to say it's bad for the country OVERALL, once all factors are weighed, but to pretend that the rosy scenario painted in this article is an accurate portrayal of the whole is utter nonsense."

Actually, the scenario is probably quite accurate. It certainly fits what I directly observed go on when a Wal-Mart moved into New Roads, Louisiana some years back.

"People who claim otherwise, who try to convince everyone that Wal-Mart is nothing but positive, base their views on selective perception, ignorance, or a combination of the two.

No, what people are claiming is that the NET OVERALL EFFECT in communities is positive. That was overwhelmingly the case in the example I observed directly.

You're right about the boutique aspect. Wal-Mart has contracted with an artist I know who made her living working upscale craft shows. They are patenting her designs for reproduction in plastic, which she originally made in wood. She feels lucky that they just didn't grab one and copy it but involved her, via an agent, in the process.

There are also plans in Wal-Mart to put larger (usually family-owned) supermarket chains out of business. They are going to open smaller neighborhood stores in strip malls and sell beef and chicken as loss leaders but keep the basics on the shelves. Again, if you need a specialty product, you'll have to go back to your upscale super-duper market, but they'll be losing money badly because they will not be able to undersell the market across the street in the usual basics that keep them afloat.

Already, you can hardly find the special cuts from independent butchers, if you can even find one of those. Some recipes that just will not be possible to try at all.

The only saving grace is that I've found a Trader Joe's which has filled an interesting niche in this new playing field of food competition.

Also note this: Pay attention to the "boutique" businesses that pop up to differentiate themselves. Wal-Mart does. And the moment those niches start to become widely accepted and dependably profitable, Wal-Mart will step in and take them, too.

There are some areas Wal-Mart really can't compete in because their business model doesn't allow for it. Around the DC area, we have Wal-Mart, but we also have a very succesful high-end food chain called Whole Foods. The type of people who shop at Whole Foods aren't going to go shopping at Wal-Mart for their organic food needs.

Wal-Mart can beat anyone on price, true, but price isn't everything.