Read the Wal Mart Effect by Charles Fishman
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A couple of things:
- Wal Mart's low prices aren't always comparable. They have required many suppliers to create cheaper lines for Wal Mart. The low price Levi's for example, are in no way, shape, or form the same as the department store Levis. That might be ok for some, but don't pretend it is the same thing. Wal Mart's relentless presure on suppliers to reduce costs leads to a cheapening of the product. The low prices aren't only due to wage differential.
- Low prices every day doesn't mean that savvy shoppers don't do well at other outlets. Wal Mart is king of loss leaders and eye popping good deals, but many shoppers do quite well at other stores with only modestly higher prices. Most grocery and general merchandise stores have sale items and loyalty programs that lowers costs for savvy shoppers. Also, many shoppers view a modestly higher price as worthwhile for a more pleasant shopping environment with relatively happy workers.
- An independent study empirically proves that Wal Mart's net, long-term job creation is modest (less than 50 jobs).
The Link
- Wal Mart has been sued many times for its hiring and labor practices. Just because many people are desperate for low-wage jobs, doesn't mean that they should be exploited.
Remember Wal Mart's super-patriotic campaigns a few years ago while they were one of the leaders in moving production off shore? It is one thing to go to off shore production, it is another to tout patriotism and a buy American campaign while they are doing it.
Wal Mart does a lot of things right from a business perspective. It wouldn't take much for them to be a better company in a civic and ethical sense.