Polimom knows many folks who are regular Wal-Mart shoppers, but when the mega-store comes up in conversation, I almost invariably change the topic… because we’re not going to agree.
However, you may be disappointed to learn that my reasons are not ideological, but selfish and personal.
For instance: Even a right-brainer like Polimom, for whom Economics is just a very long four-letter-word, can easily grasp why small independent businesses are overwhelmed by the massive buying power of a monster on the scale of Wal-Mart… and I like small independents. They provide interest and variety and there’s a lot to be said, folks, for variety…. or haven’t you noticed that every kid in your child’s classroom is dressed alike?
You probably have, if there’s a Wal-Mart in your area, because your choices, and those of your neighbors, are limited to whatever the Wal-Mart buyers brought in this season.
There’s more to Polimom’s objections, of course, than “She’s wearing my dress” syndrome. My father used to tell me, “You get what you pay for”… and when it comes to Wal-Mart (and increasingly at the slightly stepped-up Target-level stores, too), his words are law. The very few times I’ve shopped at these mega-stores, my purchases have disintegrated within weeks or months.
Polimom detests disposable-goods thinking; I prefer to buy things that will last longer than a paycheck cycle.
And finally — I hate crowds and poor service, and Polimom has experienced both during every rare trip into Wal-Mart’s cavernous maw.
Oddly, many of the people I know agree with Polimom on most or all of these points, yet shop there anyway… and they tell me that they love it. Why? Because it’s cheap. Period, end of story.
Yes, they say, the quality is poor… but it’s cheap. Yes, it’s impossible to find anyone to help you, and even when one can find someone they don’t know where anything is… but it’s cheap.
Whether the consumer is a middle-class suburbanite who simply enjoys a bargain or an individual barely making it between paychecks, the demand for cheap goods is enormous… and this is why the battle against Wal-Mart is ultimately self-defeating. If Wal-Mart increases wages or benefits, they will pass those costs along and become another Target, thus leaving a hole in the cycle for someone else to create another mega-monster with the bottom line of cost.
Whether it’s through choice or necessity, that’s what people want.
Why I don't shop at Wal-Mart
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“Polimom detests disposable-goods thinking; I prefer to buy things that will last longer than a paycheck cycle.’
Especially when you are spending an arm and/or a leg for the stuff – take for example televisions, or electric razors that have non-removable batteries. Or cars, for Pete’s sake! It really chaps me to have the repair place tell me it is cheaper to throw it away and just get a new one, or that the old one is no longer supported (especially true for consumer electronics.)
Grrr….
~EdT.
Well, this would have to be the first time I disagree with you on several points. Yes, the service is bad — but service is bad everywhere these days (in New Orleans.) And yes, the clothes are cheaply made – so I don’t buy them. But I am surprised to see your over-simplified argument that WalMart’s prices are low b/c of low wages and benefits. Have you ever worked at a small business? I have. Are you aware that their benefits are typically worse than large chains b/c of something called cafeteria benefits that only larger companies can leverage? Are you aware that many are less flexible in scheduling b/c they have fewer employees to cover shifts? Not only healthcare, but retirement planning, work/life balance initiatives, and professional development are under-funded at most small businesses.
And, are you aware that while lower prices, combined with “one stop shopping” are WalMart’s market position — one of the most amazing ways they have achieved this position is through breaking up an industry standard of paying astronomical fees for shelf space which kept small businesses OFF of the shelves of major grocery chains? WalMart has created major players out of small guys with good ideas that were unable to get into grocery stores in the past. They also service small businesses through a plethora of services at Sam’s Club. Far from ruining mom and pop businesses, they are enriching many of them.
Walmart gets bad press for having a successful business plan. They do not get a lot of the good press they often deserve for things like their community giving program (which matches any fundraiser for every local-nonprofit that requests it, once a year per organization) or even the millions of dollars and merchandise it gave to New Orleans recovery efforts.
I often buy groceries at Walmart…I can get the whole wheat pasta that I like, and the whole wheat pancake mix, no matter where I am in the country. I don’t buy the products like clothing (and many kinds of fresh produce) that I don’t like, there are many other places available to buy well made clothing, even at a bargain, and it is my choice to seek them out.
It is your choice not to shop at Walmart…but I remain surprised that you would criticize them just b/c you don’t like their clothing and have not looked further into their business plan than the rather lame and unfounded “low wages and benefits” argument.
By the way – I don’t work for Walmart! I just respect a good business plan that benefits the consumer and delivers on its promise. They don’t promise excellent service!
Hi M — Actually, this post started out as a much longer one that included the business models / inventory control approaches, etc., but it ended up much too long for a single entry. I have a part two in draft, but I’m still working on it. I do understand how — and why — Wal-Mart works, though.
You said:
But I didn’t criticize them for that plan. Their costs are low, in large part, because of the enormous turnover / ROII, combined with huge buying power and low overhead. Furthermore, I’m not convinced that they’re treating their employees badly, with benefits or wages.
In fact, I said that the war against Wal-Mart is self-defeating, because there’s an enormous demand for what they provide. I just don’t count among those who are demanding it.
We agree, I think, more than you realize.
[edited to add the following:) In terms of New Orleans (since it’s on all our minds tonight) — they gave enormously during Katrina, and I have great respect for their efforts. They do give to communities. However, New Orleans is unusual in its business environment: the economy is driven largely by TONS of small independents, and they’re not all competing for shelf space. Do you suppose a mega-retailer in such an economic environment has any impact? (I’m asking that with all sincerity, and out of concern for the city.)
Wal-Mart’s “failure” is that they became so successful, they ended up having the effect of driving out the M&P retailers. IIRC, their original competition were other department stores such as K-Mart and Sears, and early on they did open the doors for small vendors (and especially American vendors.) However, even in the earlier days they were known for attracting a certain ‘class’ of clientele, and so there was opposition (though less well publicised) to locating their stores close to so-called “upscale” neighborhoods.
I think the focus of the opposition has now shifted to their sheer size – in effec tthey have become the 600-lb gorilla which dominates the geographic region where they are located, and pretty much forces the small retailers out.
BTW, I am not convinced it is only the low cost that attracts people – Target and similar stores are also doing pretty well, and I think it is the “one-stop shopping” where you can get groceries and merchandise which is attracting people.
Think of Wal-Mart Target etc. as the old General Store – on steroids!
~EdT.
Well, I’m glad to see that I was wrong about your assessment of Walmart. I don’t think your post conveys that, though. I read it as saying that there is demand for Walmart b/c it offers cheap products and people want cheap regardless of selection or quality. I think, as I said, that in certain areas they provide cheap, selection, and quailty. You also say that WalMart overwhelms independents, about which I already posted at length.
As for whether Walmart has any impact in an economy like New Orleans, it certainly does. I just don’t think a major worldwide force in retailing that offers jobs to a range of skill groups with opportunity for advancement is such a bad thing — as many Walmart-bashers (substitute here Starbucks bashers or any other successful corporate chain) tend to claim. I’m not saying you are a Walmart-basher, I just hear it all the time and it gets old. It seems like society is saying you have to hate Walmart if you are educated and socially responsible, and that just isn’t the case.
In terms of the grocery industry, when Walmart came to Uptown it changed the scene. A struggling Winn Dixie went even further out into no man’s land, the Sav-a-Center spiffed itself up physically and product-wise trying to re-create itself, and the locals like Langensteins kept on going. On clothes, I can’t think of a single example where it affected that industry, but maybe I’m not looking in the right places. I certainly don’t see everyone in my children’s classes wearing the same exact Walmart outfits. They go to a local public school with a range of socioeconomic levels. One of the reasons I am still in New Orleans, though, is a dread of the big-box retailer suburbs. You have me thinking on that point, and what Walmart is doing to those markets. I wonder, though, how many independents were in those markets and how much variety they offered to begin with. Where I grew up, north of Boston, well before Walmart, there was already too much homogeneity for my liking.
Electronics, low-end furniture, what else? I can’t think of how the Walmart has made a dent on those markets in New Orleans. ..but maybe the industry players would disagree. Certainly, it would encourage cost management, partnerships, and creative marketing.
Interestingly, Whole Foods seems to get much less criticism (although they aren’t exempt from it, they certainly got their share when trying to get into Uptown) and I have to laugh at that. It’s hard to be educated and socially responsible and criticize a company for which you are the target market, you know! They have a socially responsible product and position, even if they are a mega-corporation that is putting independents out of business. There is no criticizing them on the employee front, though, they are tops when it comes to employee benefits.
I hope to see that more in-depth part two post and the comments it gets!
Oh dear. M, this feels like one of those times when a chat over a cup of coffee would be a lot easier.
You said:
Yes, that’s exactly what I was saying. People want cheap. But I understood your first comment to say you felt I was criticizing them because of their business model. Perhaps I misunderstood?
Leaving aside the business model altogether, let’s consider them a different way: if their prices were higher, but the goods and service-levels remained the same, would people still shop there?
Coffee sounds good! Unfortunately, it will have to wait until the next time you travel to NOLA. I wanted to come when you were here (was it earlier this year?) but alas it didn’t work for the kids. I actually said Walmart gets bad press for having a good business plan — which was my sarcastic way of saying that the fact that it is successful (the good business plan part) is what really draws the criticism (b/c the general public often demonizes big business).
As for your question — I’m with Ed there. I think that the appeal of Walmart is the low prices AND the one stop shopping. So, if the prices were higher but people still felt they could make one trip out instead of hitting several different stores, they would still have a market. If the prices got very high and the service was still bad, I think they would start to lose market share. It’s more than just cheap, but cheap is a big part of it.
I haven’t shopped there since last November and never will again!