shopping at walmart

[Sean]

But hey, don't look at is as a bad thing. It's like a circus freak show you don't have to pay to go into.


..

That's how I look at it. :D

[rwh11385]

heeter, can you explain unfair competition to me? i am pretty sure i understand it, but i don't buy it. as long as you are not breaking the law then it cannot be unfair.

As much as I am usually laissez-faire, I don't feel that having a single powerful company controlling the industry is fair. Sure there are many many smaller retailers around, but Walmart has exclusive dealings that others cannot get which gives them an unfair edge.

There is competition but Walmart does its best to make them much weaker, not able to pull weight and get its deals, and drive out local competition it can attack with predatory pricing.

To show Walmart's strength compared to competition, from link below:
"For our purposes, a few facts will suffice—that one in every five retail sales in America is recorded at Wal-Mart's cash registers; that the firm's revenue nearly equals that of the next six retailers combined; that for many goods, Wal-Mart accounts for upward of 30 percent of U.S. sales, and plans to more than double its sales within the next five years."

How can this be good for a consumer who values mid-priced quality goods? A single force is pushing all substitute or competitive stores to go cheaper and lower quality. I feel the need for a balancing force, or two, or three, but Walmart isn't about to let that happen.

http://www.harpers.org/archive/2006/07/0081115

"Breaking the chain: The antitrust case against Wal-Mart"

"But what should concern us today even more is a mirror image of monopoly called “monopsony.” Monopsony arises when a firm captures the ability to dictate price to its suppliers, because the suppliers have no real choice other than to deal with that buyer"

"The idea that Wal-Mart's power actually subverts the functioning of the free market will seem shocking to some. ... One of the basic premises of the free-market system is that actors are free to buy from or sell to a variety of other actors. In the case of Wal-Mart, no one can deny that every single firm that supplies the retailer is, technically, free not to do so. But is this true in the real world? After all, once a firm comes to depend on selling through Wal-Mart's system, just how conceivable is the idea of walking away? Producers own and maintain machines, employ skilled workers, lease land and buildings. Even with careful planning, most would find the sudden surrender of 20 percent or more of their revenue to be extremely disruptive, if not suicidal."

"If a single business deal illuminates the degree to which Wal-Mart has centralized control over America's consumer economy, it was last year's takeover of Gillette by Procter & Gamble. Gillette would seem one of the last firms likely to find itself unable to protect its pricing power; its 70 percent share of global razor sales gives it some weight at the negotiating table. Yet the Boston-based firm discovered that it could no longer keep its profit margins safely out of the grasp of the Arkansas retailer. And so was conceived the largest in a long list of buyouts due at least in part to Wal-Mart's power, including Newell's takeover of Rubbermaid, Kellogg's purchase of Keebler, and Kraft's buyout of Nabisco. And of course there is the long list of firms that have ended up dead or in Chapter 11 reorganization at least partly because of their dealings with Wal-Mart. Some are small fry, like Vlasic Foods. Others were once powers, like Pillowtex. Some were beloved brands, like Schwinn."

"Antitrust enforcement against the A&P and other big firms like Sears prevented any twentieth-century American retailer from ever growing nearly as powerful as Wal-Mart is today. But since the Reagan Administration, the only effective constraints on Wal-Mart have been set by investors and revenue flow. Even during the 1990s, when the Clinton Administration targeted a few companies for abusing their pricing power, the Arkansas-based retailer somehow managed to avoid any action. It is unclear whether this was in any way due to the close relationship between the Clinton family and Wal-Mart, on whose board Hillary Clinton served for many years. But even as Staples and McCormick & Co. were sued, a firm with vastly more power over the American economy was left entirely free to extend its domain in whatever direction and to whatever extent it wished. In fact, in one of the highest-profile antitrust cases of the 1990s, an FTC suit against Toys R Us for colluding with toy manufacturers, Wal-Mart emerged as one of the biggest winners."

"The producers that dominated the American economy for most of the twentieth century were geared to build more and to introduce new, to protect their capital investments against overly predatory investors, to raise price faster than cost, to show some degree of loyalty to workers and outside suppliers and communities. Wal-Mart and a growing number of today's dominant firms, by contrast, are programmed to cut cost faster than price, to slow the introduction of new technologies and techniques, to dictate downward the wages and profits of the millions of people and smaller firms who make and grow what they sell, to break down entire lines of production in the name of efficiency. The effects of this change are clear: We see them in the collapsing profit margins of the firms caught in Wal-Mart's system. We see them in the fact that of Wal-Mart's top ten suppliers in 1994, four have sought bankruptcy protection."

[rwh11385]

Sam Walton does not determine that - you have free choice to shop wherever you like.

O Rly?

"The effects of monopsony also can be difficult to pin down. But again we have easy illustrations ready to hand, in the surprising recent tribulations of two iconic American firms—Coca-Cola and Kraft. Coca-Cola is the quintessential seller of a product based on a “secret formula.” Recently, though, Wal-Mart decided that it did not approve of the artificial sweetener Coca-Cola planned to use in a new line of diet colas. In a response that would have been unthinkable just a few years ago, Coca-Cola yielded to the will of an outside firm and designed a second product to meet Wal-Mart's decree."

http://www.harpers.org/archive/2006/07/0081115

http://www.iht.com/articles/2006/03/...ss/walmart.php

[E30 Wagen]

Above is an illustration of a part of my hometown (gs = gas station). Guess which store was there first.

Meijer is like the local equivilent of a walmart with stores in states that surround Michigan as well.

As a result of Walmart moving in to town, an extra stoplight had to be installed and more "Michigan turn" lanes had to be added. Now traffic sucks around that area. Our city leaders wanted it to bring in more business and economic growth. It took like 4 years for the store to be approved for construction. They had to comply with extra tough standards due to the land it was built on and they had to make sure the building's exterior looked extra nice due to some building codes.

Now, if I was walmart, I would seriously say, "why bother? There is already a Meijer across the fucking street. There is no demand for another store in this area. Moreover, we are spending shit loads of money and time to get the building approved. maybe we should go look for a different place to build a store."

Well, it happened anyway, and now we have two major grocery store and general merchandise stores right across the street from each other.

Fuck walmart and fuck the idiots who think we need more of them.

[Sean5294]

Sam Walton was an Evil Genius MMMMUUUUUHHHAAAA!! All Hail The Peoples Republic of Walmart.:bow::hitler:

[eurostyl e30]

bingo. unfair competition.

walmart loves predatory pricing and exclusive dealings - fundamentally anti-competitive and unhealthy for all of us, even the people who buy its cheap goods

II completely agree with everything you've stated about Wal-Mart thus far. Sparing any more economic jargon, eventually the purchase of loss-leading products from China will haunt us all not only on a larger economic scale but also when Wal-Mart truly is the only game in town.

I work at an independent record store that has experienced a lot of trouble not only from iTunes/bit-torrent, but also from stores like Wal-Mart selling new releases for prices impossible for a small store to match. Does this benefit you? Yes, perhaps in the short term. But try getting Wal-Mart to order any disc in a distributor's back catalog. Used CDs, vinyl, NON-CLEAN copies of regular top 40 albums? Sure, there is eBay. But the point is the source of these items existed on Main St. in your town before Wal-Mart shut down the business district - specialization and variety go out the window.

I think it was MSNBC or another news outlet that ran an hour long special on Wal-Mart a few years ago. It documented the major manufacturers of consumer goods and the troubles they encountered attempting to get their goods in the stores. The inferior 'Wal-Mart' line of many consumer goods is a reality, as is the reduction of quality in order to meet the constraints of WM's demands.

[TDE30]

Young and dumb, but it was fun at the time.

Young, dumb, and apparently with a lot of Lincoln's to spare. :)

[TwoJ's]

Back on the original topic, when I was like 16 my friends and I would smear dog shit on the bottom of $5 bills and put them on the sidewalk in front of Wal Mart. Seeing the people freak out and fight over the money, only to realize that they just smeared shit all over their hands was absolutely hilarious at the time.

Young and dumb, but it was fun at the time.

[1991 318is]

The good news out of China is that the active ingredients in a lot of prescription drugs sold in the US are made in China. The drug companies takes those ingredients and combine them with others to make the final product. These "drugs" can be and are labeled "Made in USA".

"The FDA has now discovered that the raw ingredient in Heparin from Baxter and B. Braun came from China. It was doctored with chondroitin sulfate, a widely used, over-the-counter dietary supplement made from animal cartilage and used to treat joint pain. When chondroitin sulphate is altered, or "oversulphated," it mimics the blood-thinning action of heparin."
It isn’t clear whether chondroitin sulfate was added deliberately or accidentally, but the agency does know that the doctored drug did not occur naturally or as a result of the manufacturing process."
Run that through your "as long as you are not breaking the law then it cannot be unfair" thought process and present you conclusions to the families of the people that have died as a result.

[DarkWing6]

heeter, can you explain unfair competition to me? i am pretty sure i understand it, but i don't buy it. as long as you are not breaking the law then it cannot be unfair.

[Ryan Stewart]

I also hit up Sam's everyone blue moon when I want to buy a pallet of something or stock up on wines. It's just like a Costco.

It's owned by Wal-mart or vice-versa or whatever....

I went there once (sams) and realized that the expiration dates on half of the shit was rubbed off. No bueno.

[rwh11385]

Ted,

You are incorrect. THere are hundreds of companies that make a "WalMart" line of cheaper products that they do not sell elsewhere.

One need only look at the tire selections at Sams and WM. GoodYear makes tires that are only sold at WalMart stores. They are NOT the same as what you would get elsewhere.

Hanes does the same with underwear.

bingo. unfair competition.

walmart loves predatory pricing and exclusive dealings - fundamentally anti-competitive and unhealthy for all of us, even the people who buy its cheap goods

[Turf1600]

I also hit up Sam's everyone blue moon when I want to buy a pallet of something or stock up on wines. It's just like a Costco.

It's owned by Wal-mart or vice-versa or whatever....

I bought a membership there and went once for halloween candy. The membership expired. That place is good for families and that's about it.

[Maluco]

I also hit up Sam's everyone blue moon when I want to buy a pallet of something or stock up on wines. It's just like a Costco.

It's owned by Wal-mart or vice-versa or whatever....

[rwh11385]

Variety is not lacking in a wal mart store. They have a more comprehensive product line than Target, K-Mart, etc.

Sam Walton does not determine that - you have free choice to shop wherever you like.

Wal-Mart sells the same products as Target (see previous statement), or a Safeway, etc. If you buy a bottle of Gatorade at wal-mart it is no different than one from Target other than it costs a lot less. Same goes for consumer electronics, etc.

Again, Wal-mart sells much of the same toys that other specialty retailers like Toys-R-Us does. You're not going to be able to scare me into thinking that Wal-mart is the only store that sells chi-com made toys and if I shop at target the problem will be solved.

There are other low cost retailers - Costco? WinCo foods?

People make a huge mistake in thinking that Target and Wal-Mart serve the same market segment - they don't. Target tried to out Wal-Mart Wal-Mart and they failed big time. Target then made an effort to change its brand image by moving to moderately priced goods; below bed bath and beyond but above wal-mart. This was a great move because it differentiated them from Wal-Mart, and allowed them to charge their slightly higher prices. People who are brand loyal to Target will not go to a Wal-Mart in general - they have the money to be able to make the decision that they won't go to a Wal-Mart, but can't justify going to something on the pricing scale of a BBandB or a Piere 1. This is why you see a lot of college girls in a Target store, and why they cater to them.

Variety is lacking compared to Marsh, a Hardware store, an Automotive place. If Walmart uses its muscle to drive out small people with its supercenters, then all we will have is Walmart.

A lot of people don't have a choice when it comes to Walmart vs more costly places like Marsh. Since one store dominates, its choices make choices for all. Since such a large share of some company's products go through Walmart, it can make or break products/companies.

Walmart is helping to push everything to China, and pushing them to make cheaper products. Toys R Us could have had quality toys but now competitive pressures will force them to give up quality for low price. If you want to encourage any competing or substitute industry to move to selling the same crap as Wally world, then continue to go there.

There are others, but not on Walmart's level or unequal strength.

http://money.cnn.com/magazines/fortune/fortune500/snapshots/371.html

Costco Wholesale (28th in Fortune 500, where Walmart is #1 or #2)
Revenues
52,935
Industry: Specialty Retailers

http://money.cnn.com/magazines/fortune/fortune500/snapshots/1551.html

Industry: General Merchandisers
Wal-Mart Stores
315,654.0
Target
52,620.0 3 Sears Holdings
49,124.0