Review: The Wal-Mart Effect
I am NOT a Wal-Mart shopper. I do admit I've gone in there a few times, but usually leave disappointed by the disorganized, chaos that lied inside. The times I've gone I get the feeling and idea that I've saved a couple bucks. And don't get me wrong, it's a good feeling. But I still am not a Walmart shopper.
In college, I read articles and essays on Wal-Mart and how "bad" they are in both my marketing courses and my economics courses. I really hadn't given it much thought beyond that.
But recently I came across the book "The Wal-Mart Effect." I did some reading on Amazon, the website and then sent Mr. Charles Fishman an email about it. I told him I was intrigued and interested in this book and what he had to say about how Wal-Mart really effects our lives, our country and our economy. Mr. Fishman graciously agreed to send me a copy of his book. And I have since (amongst the business and chaos in my life recently) been reading it.
This is what I have to say:
Good read. Factual. So full of facts that you need to take breaks to keep them all straight. As the primary "shopper" in my family I am always wondering and looking for information about companies that we should or should not support. Mr. Fishman doesn't give you that answer. He gives you the information...the good, the bad, the ugly...for you to make your own decision.
The best part of the book was from definitely the last third (from Chapter Seven until the end). It was important and interesting for me to read what the "meaning" of low prices is and how the little decisions the big company Wal-Mart makes affects little people.
The copy that Mr. Fishman sent me also included the afterword which included a visit (by invitation) to Wal-Mart's headquarters. This too was one of the most interesting parts of the book.
All in all, a great read and I would recommend to anyone concerned about the shape of our economy and how it is affected by big box companies such as Wal-Mart (or especially Wal-Mart) It's a quick read, though you must pay attention to detail because as I said above there are SO many facts to keep straight.
Thank you again Mr. Fishman for this opportunity. I do hope that some of my readers take my advice and get a copy of your book to learn for themselves about the true Wal-Mart effect.
You can purchase copies here.
What's your take on Wal-Mart? DO you shop there? Why? Why not? Have you been affected by Wal-Mart jobwise or work wise? I want to hear from readers on this...
How do you think Target compares? Seeing as I live in MN where Target Corporation is headquartered, I wonder about Target in comparison.
13 comments:
I'm definately more of a Target shopper myself.. never had very great luck with Walmart
Having read the book "Nickled and Dimed in America" when it first came out, reinforced a decision not to shop at Walmart.....then Target leveled our local store to rebuild, a process that took about 8 months. We have a newer Walmart store in our neighborhood, very convenient for the ..."run in and grab". I upset myself when I do this. My concern with the Walmart stores is in two areas. 1st being, this brand new, atractive Walmart in the neighborhood is built in an area where brand new condo construction has gone up, new cottage homes being built....price tags that I have seen are all in excess of $250k. When I have visited this Walmart store I rarely see any people that live in my neighborhood and have only seen one individual that I am aware of lives in the area that work at the store. When I would frequent my local Target I could be guaranteed I'd see local high school students working in the store, an occasional mom working part time while children in school and every trip in you saw someone from the area shopping. So who are the people working and shopping in the Walmart and where are they coming from? My understanding of the wage/benefit structure of Walmart doesn't lead me to believe, other than perhaps a few retired people who already own their homes, that employment at Walmart would lead to being able to make the payments on the real estate in the neighborhood.
2nd....the financial impact on the community. Having recently visited out of the country to a location that is actively seeking US Retirees to relocate, homes and condominiums priced in financial range of retirement areas within the US....yet full-time housekeepers can be retained for approx. $200 per month...the cost of housing escalating yet the financial impact not being passed on to the local residents that are the local labor. I don't get "warm fuzzies" shopping in Walmart, have never felt anyone at Walmart, when I have been there, has even appreciated having me shop. Employees in general don't seem empowered to do anything without a manager, and try to find one of those when they need one. Do I think this is unique to Walmart? Absolutely not, I see this same type of corporate practice within the chain coffee shops popping up everywhere? $3 plus for a glorified cup of coffee...what is the individual preparing that coffee being paid and are they receiving any benefits, even basics of health/dental? As difficult as it may be to pay that higher expense, if it means that the young mother down the street can support her family working there, doesn't have to seek the state medicaid to insure her children, can provide the groceries for her children, I'm willing to pay it. I've told others, isn't it great that a mother of 4 children can buy them all new shoes at Walmart for under $30. Yet as an employee it's possible she can't support her family.
In re: coffee houses and their $3/coffees. The employees at Starbucks are paid at least $1 above min. wage and as long as they work 15 hrs min a week they receive med/dental benefits. Recently starbucks was awarded one of the top 100 companies to work for. They are not in same caliber as Wal-Mart.
I am not a Wal-Mart shopper, mainly because I find their stores dirty and chaotic. While their prices are reasonable, I will only go there as a last resort, even if it means that I'm paying a little more to go to Target.
I live in Chicago, and WM has been quite a hot-topic here lately, as our first WM just opened in the city. We have them in surrounding suburbs, but the City was having a hard time getting approval for the WM. Low-income neighborhoods had mixed reviews of the WM, most wanting it to be built as it would create more job opportunities.
However, at the same time the WM was being built the city of Chicago tried to pass a new minimum wage for big box retailers of $10.50, I believe is what it was, or thereabouts. WM and a construction big box retailer, that i will leave nameless, threatened to leave the city because of the cost increase they would have to take to run their store in the city, while they could pay their employees significantly less only a few miles away in the suburbs.
I found this quite interesting to see that really, there is no concern for the consumer and helping them get things at "always low prices". now, i'm sure this would be the case with most retailers, and the ordanince didn't pass here in Chicago, so we don't know what WM would have really done. but needless to say, it less me quite un-impressed with them.
I've almost finished reading the book. Like it says on the cover, it's not the usual anti-Walmart screed. I couldn't have put it better than "the good, the bad, and the ugly." The comparison of statistics is interesting, but the cons still outweigh the pros for me.
Thank you for writing this post on Wal-Mart. I have not read the book but I have been increasingly concerned about how this mega company negatively impacts the small business operations. I am also concerned about how Wal-Mat takes advantage of it's own employees. My understanding is that it is one of the largest and most profitable companies in the world, yet, the company that ranks one of the lowest for providing health and dental benefits to employees and families...not to mention the barely livable salary for those who work there. As a consequence, employees are forced to secure coverage through public assistance. In other words, as tax payers, we pay for Wal-Mart's choice to not provide coverage and furthering the profits for the Wal-Mart elite. This is an important topic that I am happy Mrs. Postuma has choosen to write about. I for one, we be purchasing a copy of Mr. Fishman's book.
One day we will all regret the "wally worlds"
Would it not be better to support our local stores , pay a fair price, get the service we expect from someone who actually appreciates our purchases?
It won't stay the same because we all want to pay those loowww prices for goods made in some far country for a wage of $2.00 per day. Then we will complain where are the jobs?
Don't get me going............
Dadios
I am very interested in reading this book to see what the truth is about Wal-Mart. You and I have started this discussion a couple times Samara and have yet to finish it because of our children running and being crazy. I will have to borrow it while I am sitting here on bedrest awaiting Maggie's arrival.
I must say that Target boutique will always be my favortie place to shop. You can get anything there and I know that the quality is great and it is organized nicely unlike Wal-Mart.
I will be honest. I do shop Wal-Mart. I buy most of my paper products and cleaning supplies from Wal-Mart. I have saved receipts from other stores and when I am looking at a savings of $5 or more (I do bulk shopping for such supplies) I will shop where I can get a savings. I do prefer Target or Cub but like I mentioned before, $5 is $5.
If we had a decent store here in town, I would shop local but I can't justify spending $8.99 for a 12 roll pack of toilet tissue when I know I can go to Wal-Mart and pay $5. (for those wondering Tempo is the brand).
My last comment would be, I too would like to read this book. I don't know or understand much about the whole saga of the Wal-Mart dispute and maybe if I did, I would change my mind about where I shop to save a buck.
I haven't read his book yet either, but I did listen to a radio show he did a few months ago. I didn't realize how the Wal-Mart Effect touches many others, besides small businesses. Wal-Mart pays low wages and doesn't offer health or other benefits to employees, putting a strain on public health. Manufacturers are also affected as Wal-Mart pressures them to give the lowest price and to create special packaging to cater to Wal-Mart's preference for selling things in bulk. This often causes manufacturers to take a loss on the bulk item in the hope of getting other products into their stores. They find out soon that Wal-mart doesn't care for any other items, even though they get a special deal on bulk packaging. The situation with Wal-mart in urban or suburban markets is a little different than in rural markets. Everyone knows that small town businesses suffer when Wal-mart moves in, but in the suburbs, if Wal-mart doesn't do it, someone else will. Menards, Target, Best Buy, Cub, etc all do the same thing to small businesses. Just try to find small electronics, grocery or dept stores in the burbs. The difference is that those other stores treat their employees a little better which hopefully leads to reinvestment in the community by their employees. I haven't even touched on foreign labor practices and outsourcing jobs. I hope this long comment isn't boring you to tears. Can you tell I'm not too impressed with Wal-mart?
http://articles.moneycentral.msn.com/Investing/Extra/CostcoTheAntiWalMart.aspx Just read this article about Costco.....interesting article. I may have to look into having a membership
Thanks for the info...your link doesn't work so we can't see the article.
Costco is a similar store to Sams Club with NO relation to Walmart or Sams.
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