Walmart: the High Cost of Low Prices - Documentary

[barbaro]

It's comprehensive, lengthy, and informative.

I hope a couple/some watch this or a portion of it: then, we can discuss in more detail later.

[Boon Mee]

As it's been pointed out before, we got a situation where it is Wal-Mart vs. The Morons

1. Americans spend $36,000,000 at Wal-Mart every hour of every day.

2. This works out to $20,928 profit every minute!

3. Wal-Mart will sell more from January 1 to St. Patrick's Day (March 17th) than Target sells all year.

4. Wal-Mart is bigger than Home Depot + Kroger + Target +Sears + Costco + K-Mart combined.

5. Wal-Mart employs 1.6 million people, is the world's largest private employer, and most speak English.

6. Wal-Mart is the largest company in the history of the world.

7. Wal-Mart now sells more food than Kroger and Safeway combined, and keep in mind they did this in only fifteen years.

8. During this same period, 31 big supermarket chains sought bankruptcy.

9. Wal-Mart now sells more food than any other store in the world.

10. Wal-Mart has approx 3,900 stores in the USA of which 1,906 are Super Centers; this is 1,000 more than it had five years ago.

11. This year 7.2 billion different purchasing experiences will occur at Wal-Mart stores. (Earth's population is approximately 6.5 Billion.)

12. 90% of all Americans live within fifteen miles of a Wal-Mart.

Perhaps we should hire the guys who run Wal-Mart to fix the economy? Please explain what is the so-called 'high cost' of low prices?

[sabang]

Please explain what is the so-called 'high cost' of low prices?

The very core of the issue.

On one hand, starting with the highly efficient warehousing & distribution system Jim Walton set up, followed up by ruthless cost paring to suppliers thanks to it's ever growing pricing power, Walton's was and is able to deliver competitive prices to the consumer, profitably. That will always draw them in in numbers.

On the other hand, it was the death knell to small town America as we knew it. The small businessman, the small shop, personalised business relationships. RIP, Andy Griffiths. Walmart however did not start a trend that probably owes it's origin to mass transportation- they were just the best at it. Like JD Rockefeller before him, Jim Walton expanded by either buying or crowding out his competition- but he was enabled to do so because he had a more efficient business model.

In the process of creating so many mainly low wage jobs in it's own ever expanding behemoth, how many jobs did Walmart destroy elsewhere? How many small businesses were either bought out, or driven to bankruptcy? Now the descendants of that one man, Jim, control more financial wealth than the bottom 40% of all Americans.

But at what benefit to the nation? Investment bankers and lawyers aren't alone in being a leech off the greater society in a holistic sense. Under the rules of business however, they do not need to justify themselves. Business is about making profit, not merit.

[Boon Mee]

We can't go back to the 1950's and small-town America/Andy Griffith any more than we can prevent Madonna from taking her clothes off...

[FlyFree]

The problem is not Walmart, it is the shortsighted, dumb consumer.

It's not Walmart's business to save morons from themselves.

IMHO corporations are a humongous slice of the world's problems, but like religions, they just supply what the sheep want.

If you want to start engineering society, stop just trying to protect the sheep from themselves. Start culling the morons who are the vacuum sucking the world down into the shitter.

[sabang]

If you want to start engineering society, stop just trying to protect the sheep from themselves. Start culling the morons who are the vacuum sucking the world down into the shitter.

Pray, expand. Who are these morons sucking the world down the shitter?

[FlyFree]

Doesn't really need much expansion.

The easily-brainwashed consumer. Can't figure out that low prices translates into low wages and wanton destruction of the planet.

It's the socialist syndrome. (Ish, I better expand that. Not cons/lib. These days, everybody is seemingly a socialist, entitled) We want, but we won't take responsibility. We'll blame someone else and demand more. Then we'll rush out and buy the next iphone. We can, because it's soooo cheap. Life's good, eh?

[VocalNeal]

Please explain what is the so-called 'high cost' of low prices?

Isn't this why the economy is in the shitter? Most cheap stuff is imported so even though Walmart has all those employees there would be more jobs if the products for everyday life were made locally.

Shoes, clothes etc...

It is a like a parable: two cities one rich and powerful the other poor. the rich city gets all its stuff made in the poor city, eventually the poor city has all the money and... Happens everywhere if no one is awake at the switch.

[Lostandfound]

There's a growing movement in the UK to buying local and local farmers' markets.

The quality of food at these markets is often better and cheaper than supermarkets.

[Jesus Jones]

The problem is not Walmart, it is the shortsighted, dumb consumer.

It's not Walmart's business to save morons from themselves.

IMHO corporations are a humongous slice of the world's problems, but like religions, they just supply what the sheep want.

If you want to start engineering society, stop just trying to protect the sheep from themselves. Start culling the morons who are the vacuum sucking the world down into the shitter.

Partly true, but they are responsible for forcing people from their own homes to build stores via corrupt governments in various countries.

Antonia Juhasz has written regarding the destructiveness of Walmart.

[Humbert]

2. This works out to $20,928 profit every minute!

Where did you get these figures. That is a remarkably low profit margin on the sales you quoted.

[Humbert]

The easily-brainwashed consumer. Can't figure out that low prices translates into low wages and wanton destruction of the planet.

So, people shopping at WalMart buying toilet paper, paint, milk and underwear etc. are destroying the planet? Who's brainwashed around here?

[Boon Mee]

2. This works out to $20,928 profit every minute!

Where did you get these figures. That is a remarkably low profit margin on the sales you quoted.

From a somewhat dated article so you're right, Wal Mart's margin today is better than I quoted.

Let's look a little closer to home while we're on the subject. Do you think all the Lotus/Tescos, Big C's, HomePro's and so on have been detrimental to Thailand and it's economy or a benefit?

[buriramboy]

There's a growing movement in the UK to buying local and local farmers' markets.

The quality of food at these markets is often better and cheaper than supermarkets.

I'd agree with better but not so sure about the cheaper.

[FlyFree]

The easily-brainwashed consumer. Can't figure out that low prices translates into low wages and wanton destruction of the planet.

So, people shopping at WalMart buying toilet paper, paint, milk and underwear etc. are destroying the planet? Who's brainwashed around here?

I'm not American. I don't fall for half-arsed dumb questions. Figure it out. Or go buy your next iphone.

[Boon Mee]

^
Lotsa Wal Mart's in Brazil, China etc...

[Lostandfound]

There's a growing movement in the UK to buying local and local farmers' markets.

The quality of food at these markets is often better and cheaper than supermarkets.

I'd agree with better but not so sure about the cheaper.

Probably you're right, but if you're seriously cash strapped, a wander around the market an hour before trading ends will get some real bargains. supermarkets throw away slightly damaged or ripened fruits - markets will sell it for pennies a kilo.

They will never compete with supermarkets selling essentials at near as nothing to cost, but if lard arsed Brits can be weaned off overpriced supermarket shite in boxes then there's still hope!

[Little Chuchok]

Walmart is probably keeping China in the black.

Low priced shite .

It's the stupid, dumb as fcuk consumers that drive walmart and their copy cats.The same thing happens here with a store called The Warehouse.

What ever happened to quality and home grown/made goods?

Walmart is the single biggest shipping account in the world...bar none.

[Boon Mee]

Walmart is the single biggest shipping account in the world...bar none.

They have their own navy which can cross the Pacific in 5 days and hold 15K containers.



Supersize ships being built to feed our consumer appetites | Eartheasy Blog

[Humbert]

Let's look a little closer to home while we're on the subject. Do you think all the Lotus/Tescos, Big C's, HomePro's and so on have been detrimental to Thailand and it's economy or a benefit?

Not me. I'm in favor of consumers having choice and lots of competition. Competition always makes for a better marketplace.

[Boon Mee]

The advantage to the consumer is with the Big Box stores you get warehouse pricing and who is going to object to that? Say you're after a refrigerator or A/C etc and you check with the Mom & Pop outfit 'round the corner and then you look at the variety and pricing at a HomePro. Where are you going to make that purchase?

[Freewheelin2012]

With just these few big stores products disappear and eventually you have less to choose from on their shelves. At least, that's how I see. I wonder how many small producers of products have disappeared due to these big stores. So, not only do the small retail shops disappear but so do the producers. In Thailand, I would much rather shop at a place like Tops than BigC or Tesco because it has other products. Even though BigC and Tesco have more space, I can find more variety of clothes and sizes at Central or Robinsons.

I bought a shirt at Walmart last May in the US and its falling apart. I would guess it was made in China. Nice looking shirt but lacking real quality. The socks I bought at Walmart which I thought we of the same quality as I had bought a couple years ago were now a different material and actually a different size than stated on the package. Too bad I tried them on once I got back here. Walmart opening up didn't keep the quality, it just lowered prices. In fact, Walmart is a reflection of what is happening to America overall: the corporation gets rich, the workers get survival money and are allowed to keep their jobs if they shut up. The consumers get less for their money. Overall the quality of life is going downhill for average Americans.

But as many have said here, the consumers are creating the problem. Personally, I don't plan to buy as freely from Walmart as I did in the past just because of the crap I received from them this last trip to the states.

[Humbert]

^You have your analysis exactly wrong. Wal Mart is a discount hyper mart and does not compete with department stores. They have a totally different level of quality, price and assortment. So don't compare the apparel you find at Wal Mart with apparel you find at department stores. Wal Mart and other retailers buy what sells on their shelves. Their assortments are a reflection of consumer demand. Products that people do not want do not survive in their assortments. Wal Mart is not elbowing out competition or lowering the quality of life for average Americans. If customers want better quality they can find it at a myriad of other retailers.

[Boon Mee]

^You have your analysis exactly wrong. Wal Mart is a discount hyper mart and does not compete with department stores. They have a totally different level of quality, price and assortment. So don't compare the apparel you find at Wal Mart with apparel you find at department stores. Wal Mart and other retailers buy what sells on their shelves. Their assortments are a reflection of consumer demand. Products that people do not want do not survive in their assortments. Wal Mart is not elbowing out competition or lowering the quality of life for average Americans. If customers want better quality they can find it at a myriad of other retailers.

Got that right.

Ever see those 'People of Wal Mart' photos circulating throughout the interweb? They are the sort that buy their clothes from Wal Mart rather than pay a little more for quality merchandise.

Best buys at a Wal Mart are food, household goods like detergent etc., hunting/camping equipment, music/movie CD's etc.

[sabang]

Jim Walton set up

Wrong sab- Sam Walton founded Walmart. d'uhh.

Wal Mart is not elbowing out competition or lowering the quality of life for average Americans.

It most certainly elbows out competition be it the old style mom n pop stores, or competing chains. It's not like a walmart sets up somewhere and fosters new consumption- rather, thanks to it's price competitiveness and 'one stop shopping' facility, existing consumption patterns are altered.

Kenneth Stone, Professor of Economics at Iowa State University, in a paper published in Farm Foundation in 1997, found that some small towns can lose almost half of their retail trade within ten years of a Wal-Mart store opening. He compared the changes to previous competitors small town shops have faced in the past – from the development of the railroads and the Sears Roebuck catalog to shopping malls. He concludes that small towns are more affected by "discount mass merchandiser stores" than larger towns and that shop owners who adapt to the ever changing retail market can "co-exist and even thrive in this type of environment."
Walmart - Wikipedia, the free encyclopedia

That's competition though.