The Walmart Effect
Wal-Mart effect n. The economic effects attributable to the Wal-Mart retail chain, including local effects such as forcing smaller competitors out of business and driving down wages, and broader effects such as helping to keep inflation low and productivity high. Also: WalMart effect.
I was reading the news yesterday and came upon another example of the Walmart effect. We have been seeing the results of Walmart's expansive growth for decades. Walmart moves into a town then one day you notice that all of the mom and pop stores are going out of business. They cannot compete with the lower prices of Walmart and are forced to close their doors.
It's funny how people saw this happening and just made comments in passing. It didn't really unsettle anyone. Who cares, it's just old man Jones little general store down the street that had been in business since the old timers went there to enjoy a malt after school. The problem is there are literally hundreds of Mr Jones all over the country who are either retired or in the ultimate show of humiliation, handing out carts and saying "Welcome to Walmart"
Well the Beast that is Walmart has an appetitie that cannot be satisfied. However we are not talking about little mom and pop shops anymore. It's the electronic store chains that are now falling victim. Circuit City is facing a buy out by Blockbuster (Investors are not taking a number and getting in line), REX will be closing half of their stores, even Best Buy is looking at downsizing and layoff's because of Walmart's Black Friday tactic of offering LCD and flat screen TV's under $1000.
Now it's nice to know you can get a Flat screen TV so cheap and other things so cheap too but think about the effects. When we had Mr and Mrs Jones entering the workforce looking for jobs the economy was able to absorb the hit. Now we are looking at literally hundreds of workers entering the workforce many of them will end up at Walmart. Employees of Walmart who are working in the stores are not even making a living wage in many cases so we the taxpayers get to subsidize them through government programs.
Most of us are already feeling the bite of higher gas prices. I'm not talking about at the pump either, but in the higher cost of all consumable products. The prices are rising because somewhere in the trip from production to consumption you have truckers. Truckers who are spending well over $1000 a month just in fuel. Those fuel costs are factored into what you pay for products. So the economy is taking not only the hit from higher gas prices but also the hit from unemployment.
Unemployment caused by the import of cheap Chinese (sweatshop)goods, the closing down or outsourcing of jobs and the death of many viable small businesses as a direct effect of Walmart.
Considering Sam Walton's insistence on buying and selling American (Remember Walmart's store brand was American Fare), I'd like to have a seance and channel his spirit to ask him what he thinks about his Frankenstein Monster now.
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Comments (32)
Cheryl Baumgartner12
Medical Billing/Coding/Insurance
No offense to you Frank I'm happy you have a job. Now think about that factory full of workers who no longer have a job because Walmart does not support the American economy. They are supporting the economy in China by taking the jobs that were once the backbone of the American middle class blue collar worker and outsourcing it overseas because of cheap labor.
Sam Walton is spinning in his grave to see what Walmart has become.
Frank Osorio6
Retired Loving Life
After reading all these comments maybe I should quit my WalMart job and go back to WELFARE like before I got hired! That always great for our economy.
If you all worked for WM would still say all this negative stuff? In the past 2 years I held nothing but temporary positions. You know it's hard to get a full time job now days with benefits. Guess what, WAL MART hired me on as an FULL TIME employee even in today's hard times. What have you got negative to say about that.
If you ran a succes
Frank Osorio6
Retired Loving Life
You have great intentions by posting this article and I respect you for that. I live in Dixon Illinois pop.only 18000 people. I'm grateful to Walmart for hiring me and giving me a job I can handle. In the past 2 years I went through 6 jobs that I just couldn't keep because of my disabilities until I went to WalMart for employment.
As long as I qualified for the job they accommodated me in every way they could so I could do my job. My previous employers didn't even cared if I qualified for the
Cheryl Baumgartner12
Medical Billing/Coding/Insurance
Yes it is and I believe the main idea may have come through.Those who participate and stand by doing nothing are just as guilty as Walmart. And that is true It's one of the reasons I refuse to shop at Walmart or other big chains. I do still occasionally shop at HEB since it is locally owned and does provide jobs for locals. But I recently found another grocery store called LaFiesta.
I have compared the overall price of LaFiesta and HEB. I can spend $100 in LaFiesta and have as much in gr
Petrica Ghebaura5
Mould toolman
I think eventually everything is a sponsor or godparent of each start has an end but requires scrolling stages, who join him and the other it fails avantazează. But if things are pushed up to exterminate anyone not directly neaperat, pulling a bullet in the head as 150 years ago, but subtly by making him unable to ensure their daily needs.
Either that person not to stand regardless Tre Buie him not only because it affects, because it will inevitably come his turn.
During this and it reinf
Karl Rose6
there are but it is about a 75 mile drive just get there. the cost of gas just getting there would wipe out ant savings. we drive 30 miles one way as it is just getting to our favorite stores as it is. the whole thing sucks.
Cheryl Baumgartner12
Medical Billing/Coding/Insurance
Hi Karl see if there is a Beall's Outlet around. Also Ross Dress Shop. And believe it or not Macy's Clearance rack. I bought two complete outfits (Dress Matching hat/socks for my granddaughter right after she was born total cost was $7.50.
Karl Rose6
My wife HAS in fact checked the small shops. PROBLEM: in order for them to stay afloat their prices are about 3 times that of walmart or martin;s. we have come to the conclusion the small shops are near extinction
Cheryl Baumgartner12
Medical Billing/Coding/Insurance
It does take some effort Arthur, I can go to the mall and buy a pair of jeans around $9 at Walmart they are $14. So what we have are people that think the Yellow Smiley face means cheapest. It may be cheaper for that new vaccuum but it's not cheaper for the jeans. So i would actually spend more money than i need to on the jeans and other items.
Arthur Webster7
Just plain honesty
but shopping around you can find much better prices than in Walmart. As a matter of fact here in the U.S. you can often find better prices in the local mall on many items
Now you have me really worried about the American mentality. I didn't realise that it was so easy to find alternative, cheaper supplies.
I think it is safe to say that in the whole of Europe, there isn't a single shopping mall that is not built around a major grocery store - not only that, their prices, with a few excepti
Cheryl Baumgartner12
Medical Billing/Coding/Insurance
Arthur that's called thrift not greed. and that's not an earth shattering reason to go to Walmart. You cab buy cheap in any store many times but shopping around you can find much better prices than in Walmart. As a matter of fact here in the U.S. you can often find better prices in the local mall on many items.
Lazy well I will agree with you there, and that's exactly how Wally World gets over. The consumer goes in to buy one thing cheap and then end up spending quite a lot of money on the
Arthur Webster7
Just plain honesty
A better question would be, why are we so complacent as to allow a business to get away with it? Jenny actually stated the answer we are dumbed down.
Hi, Cheryl,
We are not complascent.
We are not 'dumbed down'.
Can you face the truth?
We are greedy and lazy!
Greedy because we do not want to pay any more for a product than we have to.
Lazy because we want to do all our shopping in one place.
I suppose I should also add that we are stupid.
Stupid because we bel
Karl Rose6
Hi Old Coot, yes you ARE 100% CORRECT. ruthless=winner and I can see the similiarties btween walmart and the so-called 'internet guru's'. Hey Cheryl I hav a ray of hope for you. here is a local supermarket here and they are NOT caving in' to walmart's tactics. They are called Martin's and are NOT a big chain either. last week, my wife did some comparison shopping and WALLA! 90% of the items at Martin's was either the same price or even a little LOWER than walmart. SADLY there are still some thi
Jeff Greene8
Online Marketing Specialist/Consultant
With all their bucks and bullying, I'm not a bit suprised that they are aiming at the Internet advertising industry, and the are just getting warmed up, people!
Cheryl Baumgartner12
Medical Billing/Coding/Insurance
A better question would be, why are we so complacent as to allow a business to get away with it? Jenny actually stated the answer we are dumbed down.
Walmart's tactics have been evident for years so why do we go along with it. In the long run it is not just other businesses that lose but the consumer. Walmart could not succeed without our help. And when we have helped them get rid of all competition, they turn around and gouge us by way of saying thanks by raising their prices.
Before K-m
Arthur Webster7
Just plain honesty
Karl the problem with Walmart is the ruthless underhanded tactics they are using.
Now, that reminds me of something....
I have the answer on the tip of my ton.....
Oh, Yes! Of course!
Internet Marketing Gurus!
Don't forget, Cheryl, we may not like it but "ruthless nearly" always wins. When coupled with "underhand", it ALWAYS wins.
NO BUSINESS HAS A SOCIAL CONSCIENCE. Why is that so difficult to understand?
Jean DAndrea7
Retired
The Walmart Effect is going to happen all over the world - it's the nature of the beast.
Once the competition is driven to closing, then the prices will go up, as they'll
be the only game in town!
We do have some control over monopolies here in Australia, but how effective
it is, we've yet to find out.........
Jenny Stewart11
BRAVO Cheryl,
It is too late too comment today - but will be back tomorrow. What a great article. dont people realise what is happening? Have we really been so dumbed down?
Jeff Greene8
Online Marketing Specialist/Consultant
They are going to attack the Internet bu offering FREE CLASSIFIED ADS Online!
http://articles.moneycentral.msn.com/Investing/CompanyAction.aspx
Karl Rose6
I sold insurance in L.A. calif for some time. ALL sorts of insurance. The agency broker is a GREEDY RUTHLESS SOB and we worked 56 hours/work MANDATORY as independent contractors. I took home some NICE paychecks BUT I STOLE accounts from other brokers and CHANGED our clients auto insurance policies ALL to HIGHRISK(even though thy had spotless driving records). This made my stats look good and I was eventually made office manager. I also padded my own pockets by 'cooking the books' via stealing th