One way of looking at Wal-mart:
Wal-mart stores are large providing many items for the consumer. They sell more per square foot than any other retailer. Staffing is adaquate and provided in key areas in the store at appropriate times. All employees (called associates) are trained extensively for their positions. The associates are trained to be very friendly to customers who are called guests. They are taught to bring guests to items they need and to answer questions the guests have or get the answers if they personally do not know the answer. The company stresses customer service and goes out of its way to satisfy customers if problems arise. Department managers are very knowledgeable about their departments and products in their department and teach this knowledge to new associates. Products they sell are what the cumsumer wants and needs with 80 percent of sells coming from just 20 percent of the items Wal-mart carries. Wal-mart need to maintain a margin in order to make money and sells its items over cost but when a market conditions in a city or town runs a item below cost Wal-mart will stay competitive and sell those products below cost. It is up to individual stores to monitor prices in its area and remain competitive on pricing.
Another way of looking at Wal-mart
Wal-mart stores are large in area, usually constructed as part of shopping malls in low-density suburban centres. The stores contain a broad range of products, from clothes through consumer electronics, outdoor equipment, toys, hardware, and books, as well as many other lines. Staffing is low, with most purchases simply being brought to supermarket-style cashier lanes on shopping trolleys, and the expertise of the staff in the products they sell is generally minimal. The products it sells are usually basic, mass-market equipment rather than premium products stocked at specialist stores.
The key to Wal-mart's success is the economies of scale it brings to manufacturing and logistics, buying massive quantities of items from its suppliers and with a very efficient stock control system to make logistics costs lower than its competitors. As well as this, its sheer size gives it the ability to discount, selling at a loss until competitors run out of resources, at which point its monopoly position allows it to raise prices. It is regularly accused of such tactics (which are illegal in some jurisdictions), and is disliked by others because the homogeneity in retailing it symbolises. Others refute the figures, stating that Wal-mart's prices remain low even where it has a monopoly, and view the complaints about homogeneity as impractical sentimentality.
In all competitive business, the company that can provide the best products to the consumers at the lowest price is the winner. However, a TV investigative program (such as 20/20 or Date Line or 60 Minutes) did a special report on the business practices of Wal-Mart some time ago. The investigative reporters learned that Wal-Mart's strategy is to open a store close to a town and drive the local stores out of business. Then they abandon that site and move to another town in the same region. They move through the area, eliminating the local businesses, then create one store serving multiple towns. The TV report showed the trail of the abandoned sites Wal-Mart has gone through. The locals were happy when a new store opened just a few miles away, but after the local businesses closed, the Wal-Mart moved an inconvenient distance away. The usual complaint is not about the presence of the Wal-Mart stores nor the merchandises it sells at low prices, but about the perceived "betrayal" when Wal-Mart eliminates local businesses but then moves away in betrayal. This practice does not affect major metropolitan areas that can support multiple Wal-Marts, but in less densely populated areas, local economies have suffered.
If someone still remember that TV program, please give some pointer to its transcript.
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