[Home]History of Wal-mart

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Revision 17 . . November 18, 2001 3:42 pm by (logged).9.128.xxx [severe copyedit and guff removal - please check for neutrality.]
Revision 16 . . (edit) November 18, 2001 6:54 am by (logged).49.40.xxx [fix a few typos]
Revision 15 . . (edit) November 18, 2001 2:18 am by Wmorrow [spelling corrections]
Revision 14 . . November 17, 2001 11:39 pm by Mathew Carrier
Revision 13 . . November 17, 2001 11:30 pm by Mathew Carrier [* trying to provide a different viewpoint of walmart]
Revision 12 . . November 17, 2001 11:25 pm by Mathew Carrier
Revision 11 . . November 17, 2001 2:38 pm by The Epopt [copyedit only -- I know nothing of the facts]
Revision 10 . . November 17, 2001 12:02 pm by (logged).9.128.xxx [Added talk]
Revision 9 . . November 17, 2001 11:47 am by (logged).4.254.xxx
Revision 8 . . November 17, 2001 10:57 am by (logged).81.253.xxx
Revision 7 . . (edit) November 17, 2001 10:12 am by Derek Ross [spelling]
Revision 6 . . November 17, 2001 9:56 am by (logged).9.128.xxx [is this fairer?]
Revision 5 . . November 17, 2001 9:33 am by Mathew Carrier [*added another viewpoint]
Revision 4 . . November 16, 2001 10:06 am by (logged).81.253.xxx
Revision 3 . . (edit) November 16, 2001 9:49 am by Koyaanis Qatsi
Revision 2 . . November 16, 2001 9:46 am by Mathew Carrier [*added info]
Revision 1 . . September 13, 2001 3:19 am by Mathew Carrier
  

Difference (from prior major revision) (no other diffs)

Changed: 3c3
One 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 variable at best. The products it sells are usually basic, mass-market equipment rather than premium products stocked at specialist stores.

Changed: 5,18c5
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 consumer wants and needs with 80 percent of sales coming from just 20 percent of the items Wal-mart carries. Wal-mart needs 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 an individual store 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.

#Retail Web site: http://www.walmart.com/
#Corporate Web site: http://www.walmartstores.com/
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. Other criticisms of Wal-Mart include its alleged propensity to kill off all competition from local stores, then shut down its stores in smaller towns, leaving residents of those areas no choice but to drive long distances to purchase essential items.

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