Wal-Mart, corporate version of Communism?

Greetings, and salutations.

Here, in the day and age of one of the largest antitrust cases to have ever hit this country, next to the great A&P Grocery store chain, I've come to notice WalMart.

I don't know if Wal-Mart is good for America. However, in following
Wal-Mart in the media as much as possible, especially around music and sports retail, one inescapably realizes that Wal-Mart's business model has changed the
consumer world. (Did you see the article in the NY Times about Wal-Mart in Mexico?) I found most interesting the comments in this article about how Wal-Mart avoids anti-trust problems by continually lowering prices.

So, the mystifying question is, how can WalMart continue to offer their inventory at such a subsequently low price. One has to take into considerations that comes with the retail industry. The market, as well as the consumer knows that for your items you have a mark-up price. Usually the "at cost" and "suggest retail price" range anywhere from 5% to 75% mark-up. Now that's just for the retailer of the product, in this case scenerio, WalMart.

I'm going to use Wigwam as an example, this is a product line of hunting cloths, wool socks, and other items that both my company, and WalMart both sale.

Prime example of an item, is the Wigwam Blind. It's a little tent looking contraption, that you use when you duck hunt. (I know, I know, I'm probably going to get people to post about how hunting is bad, and not a good thing. It's just that my company and WalMart have this same item on sale.)

I retail the Wigwam Blind for apox. $59.99. WalMart retails the same item for apox. $38.95.

Now, my cost for the blind from Wigwam is apox: $14.75. This calculates for my company to a: 4.06% mark-up. So, if WalMart makes the purchase at the same "at cost" price of $14.75, they have apox. a 2.64% mark-up. This is an apox. 1.42 less then what we have our blind marked-up to.

Here's the problem though. The example I used, of the blind being "at cost" of $14.75 they could possibly buy it for. WalMart didn't buy it at that price.

There was an article several months ago in one of the consumer report magazines that WalMart had gotten a deal with a US manufacturer on some furniture that they offer in their store. (Let's face it, WalMart is the only place you can go and buy your groceries for your party, and at the same time, buy some CDs or DVDs to use as entertainment. Hell, if you're a country boy, it's the only place you can go and get groceries, and your ammo for hunting all in one stop.) The company WalMart had contracted out with, had been forced to allow WalMart to sell the furniture for blow their listed "suggest retail price." Doing this forced the company to lower the cost of production for this item, also meaning that the profit the company would recieve for the production of this item for WalMart to drastically decrease. So, when you have these factors starting to come into play, you have your domino affect.

WalMart forces the manufacturer, to lower the cost, forcing production cost to be dropped. This cause revenue for the manufacturer to decrease. When you have such a drastic decrease in revenue, the next domino to fall is wages, and employment. With this particular company, it was employment over the wages. People where put out of jobs because WalMart forced the manufacturer to reduce the cost.

BUT, that's not where it stopped. WalMart found a company in China that was offering the same item, at a drastically lower cost. WalMart offered to the American Cooperation to see if they could come down......sorry, that was not an option. What did WalMart do??

Yup, you guessed it. The Chinese company was allowed to start production for the much cheaper cost. So here, you have an American company now having started production, now halting production, on top of a loss of contract, and many jobs were loss.

Far practice by WalMart? My belief, no.

Let's bring this to the biggest kicker. WalMart has come to having Superstores. This brings small mom and pop owned business' in small hometown American cities out of business. I've seen this occur in Southport, North Carolina, as well as Elizabethtown, North Carolina.

Though the real heartbreaker, for me is, FAO Schwartz has been competting with not only Toys-R-Us, but also with WalMart in the toy franchise.

Toys-R-Us was the first to fall to WalMarts, significantly lower prices, and now FAO is on the brink, if not declaring bankruptcy. Sad story for one of New Yorks most renown toy stores.

The people who shop at WalMart can decide whether that is good for them or not. But the intelligentsia are worried about something called Wal-Mart's "market power."

Yes, WalMart seems to set the standard for the lowest prices in town. This for WalMart also comes at a cost to WalMart itself, in the form of it's employee's. WalMart employee's are under-paid, overworked, and recieve crappy discounts.

WalMart employee's start at a base pay from what I'm understanding from those I've spoke with that work for the company ranging from $5.75 to 6.15 an hour. They also recieve only a 10% discount. Most retail stores offer at least 25% to their employee's.

Funny how, when you actually do go into WalMart, especially a Super WalMart, they have 50 registers, but only 15 to 20 registers open at any given time. Less in the evening hours and early morning hours if your WalMart happens to be a 24 hour WalMart. No wonder people are always standing in lines.

I remember listening to stories my grandparents once told me of a company called "A & P Grocery". Hehehe, now in the new generation, people are like "A & P who?" Hopefully one day, somwhere someone will find that WalMart does violate AntiTrust laws, or business practices.

Wow, that was a great post. You should check out adbusters.org if you havent already.

I rather like Wal-Mart. What it does to the national economy I know nothing of, however, I do know that Wal-Marts here have a ton of jobs, and turnover is so large there, that usually there is always a Wal-Mart hiring. As for myself, personally, I love Wal-Mart because stuff is cheap, and I have no money. In this day and age, unfortunately, I can't worry about how it's effecting everyone else, only how it effects me. But I realize, it, like most every company, is out to make money. Like we all are. I can't blame them for that.

Hay, I loved that post.

All I care about in shopping is that I can buy my amo at the same place I can beat the shit out of meat eaters. Fortunatly I can take care of that at any sporting goods store.

Point taken.

I do pay attention. I just rather like the little smiley guy. Especially when dressed as a pirate.

well for one thing the reason why Wal-mart gets better prices is that they buy in bulk, the more you buy at one time the better deals you get

Yes, well when you have 1000s of stores like WalMart does, you have no choice but to buy in bulk, that way you can distribute to your customer. I agree that it's nice to save money, but you can shop at other stores and do the price compitetion that most stores will do.

For example, my sporting goods store is "Home of the Right Price Promise." Meaning we'll have the best prices in town, and if we don't, and someone like say WalMart, or The Sports Authority, or Cabella's has a better price, we'll match their price.

Prime example of WalMart's domination of the market was, we both also carry Excalibur Graphite Pool cues. Mine retails for exactly 49.99 plus tax. Well WalMart sales their's for 39.99 plus tax (7% tax).

So I called to WalMart to speak with their sporting goods department, and was speaking with their department manager, and he refused to inform me of the price that the sale their cues for, stating, that if the customer wants it at that price, they should come buy it from WalMart.

Wal-Mart has completely inverted the buyer/supplier relationship in a lot of cases, in that they tell their suppliers what they will pay. So it's not simply a matter of them getting good deals because they buy a lot; it's a raw exercise of power.

I wouldn't have any problem at this with all if Wal-Mart would treat their employees with respect, and pay them commiserate with the income they make. Instead, they pay their employees shit, intentionally manipulate their schedules so they stay just under the threshold to be considered full-time employees and thus eligible for benefits, and force them to work off the clock to avoid paying them OT. Pile on top of that hundreds of sexual discrimination claims, and I just don't feel Wal-Mart's dominance is good for anyone not in the boardroom of Wal-Mart.

Sam Walton had five heirs to his fortune. Each of them got an approximately equal share, which is about $20 billion each in Wal Mart stock. Kind of fucking mind-boggling, isn't it? If Sam Walton was still alive, he'd be more than twice as rich as Bill Gates.

From what Jake's said, I really don't like the sound of Wal-Mart at all, and used to work for a similar company, but for everything else, boo-fucking-hoo.
SilentBob, this isn't meant as an attack on you, because I don't know you, and I don't mean to be offensive, but, if wall-mart are selling the same product as you are for cheaper, then you're going to lose business to them. If you can't afford to drop your prices, then you're in something of a situation, my friend

A sentiment I completely agree with. Although I do prefer to buy more expensive products as I've found them to be of better quality, I won't pay more for a product at one store if I can get the same thing cheaper at another. Shopping may be one of my vices, but I'm not that crazy with my cash. I know there are a lot of people here that are against the Big Corporations and Chains of stores, because of how they can mistreat workers (Wal-Mart certainly seem very guilty of this, and that sucks) or they use slave-labor. But it isn't going to stop me shopping somewhere because they treat their staff like shit. From what I've heard about Starbucks, they treat their employees incredibly well, and even part-time staff are entitled to good benefits, so maybe they're not the Corporate Evil they're made out to be. If someone works at Wal-Mart and hates how their being treated, then they should get a job somewhere else and quit. People that work crappy jobs like that sometimes think that that's all their good for, and don't deserve anything better, so are content to sit in a rut. I know, as I used to be the same before I got out of the rut I was in. So Nike uses slave-labor to make it's products... Their bags have always been perfectly suited for my needs, and Air Max are one of the few sports shoes that fit me comfortably, as I my feet are quite narrow compared to their length, so I'm going to go with what's good for me. Yeah, slave-labor is bad, and it should be stopped. But I'm not going to stop buying a product because the company that makes it sucks or treats it's workers badly.
Sorry to've been such a dick over this, and if anyone's been offended, I'm sorry, but this little rant has been building up for a long time.
Spike

did you seriously just defend supporting slave labor because you have... narrow feet?!

This post is wrong comparing Wal-Mart to communism.This is deflation at work which is part of the buisness cycle.

Noo, I said:

However, I also said:

This is purely a case of semantics, so I will clarify as well as I can.
I don't approve of slave-labor, and it should be stopped. But I can't stop them doing what they do, and their shoes fit, so I wear them. If you can tell me of any sports companies that don't use slave labor, that do narrow fitting shoes (that I can get in the UK, not order online, but physically try on) then let me know, and I'll buy their shoes instead, but I'm not going to wear ill fitting or uncomfortable shoes just because the shoes that do fit are made in Nike's slave pits.
Again, it's semantics. I don't approve of what they do, but I'm not in a position to not support them (albeit only financially) because I need what they have.
Spike

so, despite your initial denial, your answer still seems to be yes: you are willing to support slave labor because you have narrow feet.
of course, that's your choice. personally, i'd rather wear uncomfortable shoes and deal with a slight discomfort over knowingly supporting the extreme discomfort of others.

but actually, i just find it a real stretch to believe nike is the only brand of shoe that comfortably fits you. i mean, i suppose it's possible... but very, very, doubtful.. in other words, i find it highly suspect that you truly 'need' what they have. of course, i can't prove this...

I took a class in college all about walmart. Wrote long papers.. researched. There are cases of communities fighting the build of a walmart in their town and winning. I don't shop there. Ever. Fortunatly I live in an area where i have choices. I don't care if it is cheaper.. i'm still in college and living off of student loans.. but i don't care. I'm one of the few people I know that will make 10 different stops to support independent business.

what i love is that walmart for the christmas season and well every season has sold their toys way below costs, which drives customers into the store that have families, and then as they are in the store just for a toy they end up buying everything...

by doing this fao schwartz has filed for bankruptcy twice this year and kb toys is now going to have to close down its shops more than likely.

its a damn shame. the beauty of fao schwartz will have to live on in the movie big... that's the only hope.

I am certainly no expert of economics, but I believe Wal- Mart is comparable to earthquakes or tornados in terms of effects on local communities. They have singlehandedly managed to destroy the American textile industry, & smashed countless local family and regionally owned businesses. I wonder why when a Wal-Mart selects a community to assimilate there is typically a massive protest, however the same store/ supercenter seems to do incredible business down the road. I truly wish people would just stop shopping there, I mean afterall they are a much larger corporation then even Microsoft ever was. The best thing is all of these "jobs" created which are most likely low paying, part- time, no benefit sinkholes. I have never worked for Wal- Mart & this is just how I have come to feel- merely an opinion.

-- I very much agree with the statements from kealli, ferret & s5

I've said pretty much all I have to say in this thread. I *hate* Wal Mart and everything it stands for. I almost lost my mind when I found out that my mother-in-law had brought my son into one. Up until that point, he had never been inside the belly of the beast. What I find painfully ironic is that money from union grocery puts food on her table.

I guess when you put it like that, is is.

You see, this is the thing. I feel sorry for the people, but I certainly don't care about their discomfort enough to put their comfort over my own. Yes, I am very self-centered, but I can at least admit to it, and I'm not ashamed of it. That's how I am. I put myself first, and if I can then help others, then I will.
If you would seriously wear uncomfortable shoes just because of where they were made, and aren't just saying that to make a point, well, I feel that's taking sympathy for a cause too far in my opinion.

The only other brand of training shoes I've found that fits me other than Nike, is Adidas. The tag in my Adidas Torsion reads Made in China, so they too, were probably made in some slave pit, and damn, they sure are comfy on my feet

Well, I don't desperately need running shoes anymore, but when I do, need them, I'm still going to go with what fits best.
As I say before, if you can find a company that makes sports shoes that will suit my needs, then let me know, I'd be happy to buy wear them rather than something made in a slave pit. If not, then I'm afraid we're going to have agree to dissagree on this issue.
Spike

i go out of my way to find comfy vegan sneakers because i would rather not be a walking advertisement for the "slave pits", as you call them.

but to follow up on your point... you seem to make no distinction between the minor discomfort of wearing slightly uncomfortable sneakers (or just wearing different footwear altogether) and the extreme discomfort of spending a lifetime in a "slave pit".

by that reasoning, you could talk yourself into buying a shirt made by blind children in a sweatshop simply because it's that perfect shade of blue.

Despite of all the critism of walmart's ethics...it is arguably the most culturally diverse place in any suburbia...at least here in florida/georiga...its not just the hispanics hicks, and blacks...but many middle eastern people are present too. It amazing and somewhat awkward that a wlamart has become the last shred of interface among different cultures in such single class neighboorhoods in north america.

....Also some of the super walmarts are also occupied by people with trenchcoats that offer deeper discounts, bums begding for flow and doggers/flashers. After witnessing some of these things...i begun to realize it has become more than a store...I kinda want them to stick around and see how they evolve.

Well, that's great. What company are they? I'll see if they're available in the UK and try them.

I'm not making a distinction, because I don't care. Yeah, I feel sorry for the people, but not sorry enough to inconvienience myself or put myself to discomfort.
Please re- read what I said above. I am a very self-centered person, and make no apology for it. I put my own comfort, safety, well-being etc above anyone elses. I wish there was something I could do about it, but I'm realistic enough to know that my not purchasing a pair of Nike sneakers is not going to bring about the collapse of their Empire. I like to stop them running sweat shops or paying their employees a pittance, but I can't stop them, so I'm not going to waste my time trying.

Well, it's funny you should say that, as I ha-
Seriously,to be honest, it wouldn't even enter my mind. If I see a shirt I like, I'll buy it. I'm not going to grill the clerk or the manager as to who made the shirt and their working conditions.
I'm sorry we have different views on this, but that's just how I am. Believe it or not, I actually admire you for your beliefs. I just don't feel strongly enough about them to share them.
Spike

If I were to know that, I'd certainly think it a sad irony that the maker wouldn't be able to appreciate their own work.
Spike