Since 1962 Sam Walton?s company has brought low priced goods to hard working Americans, and recently to other parts of the world. They have given millions to charities, employed millions of people and helped communities grow. But to a growing number of consumers, what makes Wal Mart so great is pushing its limits. Some topics such as cutting down mom and pop shops, taking care of its associates and the actual economics of Wal Mart makes many people question their motives.
What are Wal Marts intentions? To answer the question on the tips of every ones tongues we have to ask the experts. According to CEO, Lee Scotts Address to the Los Angeles Town Hall, USA Today?s ?California tries to slam lid on big-boxed Wal Mart?, Dallas Morning News? ?Council gives Wal Mart the ok?, and CQ Researchers ?Is Wal Mart good for America? Pros/Cons?, the line between a consumer driven store and a corporate empire is thinning.
Some of the arguments made toward Wal Mart and how it is evil are ridiculous, like the claim that Wal Mart ?secretly collected life insurance benefits from its dead workers,? (Norman). But some of the claims made are more realistic and more valid. One of such claims comes from Wal Marts competitors. Not just other big-box stores such as target and shop-ko, but also little mom and pop shops. The argument made is when Wal Mart moves in it pushes smaller non corporate businesses out.
Sam Walton?s ideas of everyday low prices have stuck, and Wal Mart everyday lowers its prices so low that other smaller businesses can?t afford. Therefore making them, either move to another location or close its doors fo ever. Retail consultant George Whalin explains, ?There?s a reason Wal Mart is the largest retailer in the world, consumers want to buy things at lower prices,? (California). The fight against Wal Mart can be felt anywhere, but on the forefront, pushing Wal Mart back to Arkansas where it came from is California and Texas. California alone has tried to ban all super centers from taking up root in its state. They question Wal Marts intentions, asking if ?Wal Marts ultra competitive business practices -critics call them cutthroat and predatory ? are in their best interest,? (California). But how does Wal Mart get its competitive edge? I work at Wal Mart and I have learned a thing or two about price changes.
One thing you need to know is Wal Mart does price matching, which is where customers can get the lowest price on any good if they bring in an advertised price for something that is priced higher at Wal Mart. But how does Wal Mart beat the prices? They pay all of their department heads to go to other retailers to make sure the Wal Mart price is the lowest price. Also they have so called ?rollback? items. These special items go on sale and are usually marked down by a couple of dollars.
Usually, however isn't? always. Sometimes, especially in the electronics department an item is falsely marked as a rollback item. The associates show the price it originally was as the marked down price and raise the original price to show its false mark down. It doesn?t happen that often but it does happen. Which doesn?t seem to be in the consumer?s best interest, or any ones other than Wal Marts?
California legislature has gone as far as to try to ban all super centers, as of right now California has no super centers. The board of supervisors in Contra Costa ?voted to limit stores that devote more then 5% of space to groceries to 90,000 square feet,? Which with out naming Wal Mart banned super centers (California). Wal Mart wants to change all of that by placing a new super center every two months. Or as Lee Scott, CEO of Wal Mart in his address to Town Hall of Los Angeles puts it ?more then 25 towns in California where we?ll be opening new stores just this year?, added to the 3,600 facilities already just in the United States. He argues that Wal Mart brings many jobs, with good benefits, and better businesses to weakening economies. Yet when Wal Mart wiggles its way into a town most of the smaller businesses around it disappears and seems to attract other corporate machines. But to think it only effects local businesses is naive; Wal Mart also hurts other big-box stores.
Between 1997 and 2002 in Dallas, Wal Mart added 34 stores to it?s already over populated monopoly, the result? All of Winn-Dixie?s 15 stores were left alone and Winn-Dixie pulled out of Dallas completely, and that?s just one example (California). Wal Mart is disastrous to all retail.
