Walmart and my town...

[Bird]

Al, that's a bit odd, because I have the same situation. When I'm looking for anything in the hardware line, I start with a locally owned store. They're more likely to have what I need and be able to answer any questions I have than the big chains.

Bird

 

[JerryG]

I have read this same stuff several times and at several different places. Wal-Mart has worked its was up just as any other company hopes to do. The only thing different is that they have done better than most. I remember when there was only 3 or 4 Wal-Marts open. They started out selling anything they could get cheap. I mean real cheap, It was from Taiwan. At that time Taiwan, meant the bottom of the barrel. Over the years Wal-Mart has added one name brand after another to their stores. Now most WM's have just as many name brands as any other store. And yes they also have a large number of their own products.
Some of the grocery items are stocked by outside vendors. These items include name brand bread, name brand ice cream, name brand sodas; some of the specialty items like some spices and a few others. But by far and large the vast majority of all the products are stocked by Wal-Mart employees. I would guess that the employees stock in excess of 95% of the products sold. You may see more vendors at your local store during the day, but go in during the night and you will see how puts up the most product.
Wal-Mart does have the lowest prices ALWAYS. I can say this because it is their policy to meet any local price on the same product. If their price is higher, just tell them and they will give you the better price.
Unions, Wal-Mart doesn’t want them and I can’t see why any consumer would. At one time they were needed, now they are like a lead weight around the neck of American business. Look at GM. Why is it nearly impossible for them to build any new plants? Ask your local Wal-Mart associates if they want a union in their store. If a company is managed correctly, the employees don’t need a Union.
Did they put some out of business in my town? Yes, they did. When they came to town, some folded and some learned to adapt to the different business climate. Now the ones that folded have been replaced with stronger more responsive stores. You can’t tell that any closed by looking at my town now. The same goes for several other small towns around here.
What have they done that the local Mom and Pop store wouldn't do, if they had the chance to?????

 

[Anonymous Poster]

Do any of y'all remember when Walmart sold Kubota lawn mowers? Kubota thought it would be a wonderful move until they realized all the set up problems that were occuring and the bad reputation this line was getting as a result. Yes, Walmart could undercut the dealer in price but not in service and the treatment of customers. There is still a good portion of the population who are willing to pay a little more in return for service and knowledge. There are many small businesses that are not only surviving, but excelling in the face of competition. Just my opinion...
Doug

 

[scruffy]

Kubota is a good example of the Brand Name problems created by WalFart. Another is ... say Elgin watches for example, WalFart buys them in quantity at less than half of what a chain jewelry store can purchase them from the manufacturer...end result, the jewelry stores discontinue stocking them. Time and again, the brand name manufacturer selling in large quantity to WalFart ultimately hurts their own business, and starts reducing the quality to still make a profit.

 

[DrDan]

I see too much stuff from Malaysia (another terrorist nation) in there for my liking. I prefer to pay more and support the local guy who supports me. That's just me though - I know there will always be those who don't care who made the items they buy or where the profit from the sale goes - cheap is cheap unless it goes to countries that hate our guts.

JMHO

DrDan

 

[ejb]

I with you Jerry, Walmart is only doing what almost any other retail operation would do if they had the chance...they have a sucessful business model and it works.

In my area, a few stores closed down after walmart came in, but these stores were destined for bankrupty before walmart came in; walmart just made it more obvious. Dirty stores, rude staff, poor selection and high prices...I say good riddance to stores like that. Walmart has been a welcome addition to my area. (welcomed by consumers, not necessarily by other stores).

As far as tax base is concerned, I guess I can't say for sure how it works in other states, since laws vary, but it is pretty much a urban myth that walmarts cost more than they bring in in taxes. You know, one of those supposed "facts" that get repeated enough times without any proof that people actually start to beleive it.

Around here, the absolute worst burden that can happen to a town is an increase in residential dwellings beleive it or not. I forget the exact stats, but it was something like the average house has 1.2 kids, each kid costs on average of around $8000 to put in public school and the average tax bill on a house was around $1800.

So the average house that was built in our town (and surrounding areas) actually had a net negative effect of about $10000 per year...not a good situation.

On the other hand, when a business moves in, they pay huge amounts of tax money (personal property tax as it is called here) and don't put a single kid in school. Yes, some of that money is used for infrastructure improvements, but it is a net positive for the town; not a net negative. Most towns near us pay close to 75% of total tax revenue to the schools. ANy money that comes in that doesn't cause the student population to increase is positive for the books.

Now is it possible that in other towns the math hasn't worked out as favorably..probably. Tax laws and infrastructure changes required are going to vary greatly by town/state. But blanket statements that all walmarts have a negative tax effect on the host town are purposefully misleading at best.

 

[shade2u2]

Here's another side of Walmart. Our firm contracts with a large Fortune 100 consumer goods company. Walmart is there largest customer - just like all other manufacturers in similar industries. Walmart essentially makes ALL the rules of doing business with them. Like mentioned earlier regarding suppliers providing people to stock Walmart's shelves, our supplier has to provide personel & compatible technology to manage the inventory & ordering or products in Walmart's system. Fulltime staff is supplied to monitor the national inventory of this companies products and the manufacturer/supplier is required to determine when Walmart needs their items, order it & deliver it to them. This is a cost of doing business with Walmart. Maybe some have heard of this new trend called "Supplier Managed Inventory". The next step is that Walmart does not take ownership of this product until it is sold in their store. When it is scanned at the checkout, Walmart owns it & will pay the supplier for it!

I've learned about this process because this "Walmart Way" has trickled down through the supplier chain, which affects our firm. Walmart seems to be helping transform other industries into "Walmarts". Talk about positive cash flow, how would like to be billed for your products only after you use them or sell them.

 

[MChalkley]

Hmmm, interesting concept. What happens when someone steals said product from WallyWorld?

MarkC

 

[cowboydoc]

Glad you brought this up Shade. This is my point exactly. Walmart is not playing by any set of rules they are making their own rules that hurts everyone but themselves. They are putting the cost of doing business to everyone so they can sell a product less. Everyone but them ends up making less. Their market share and stock prices go up while everyone elses goes down. Rising to the top and doing business is great. Rising to the top and becoming a monopoly and forcing others out of business is not right.

 

[shade2u2]

Regarding Walmart in our town of 13,000 - the whole county is only 45,000, Walmart opened here 2 days ago. It is 210,000 sq ft with the grocery, gas station, auto service, eye doctor, bakery, restaraunt, etc (from what I've heard). Some in the local governments & "commercial powers" (money people) have been trying for years to get Walmart here. Our Kmart that is across from Walmart, revamped into a "Super-Duper K" or something to prepare to compeat. I do hope that competition & better pricing does result, but the smaller retail chains on the other side of town will likely close. The Kroger store next door is not reacting & I hope that they don't just close up & not fight the battle.

The local downtown retailers are extremely concerned. A consultant was brought in from Northwestern University (I think) to give the local small businesses seminars regarding dealing with Walmart. This guy actually specializes in doing just this -> advising on the effects of Walmart on small town businesses. I'm sure that he stays very busy, which is what the local newspaper about him did state... I really can't imagine any of these old mainstreet businesses surviving - sadly.

As far as employment, I've heard that Walmart actually has a good compensation package for retail business. Their wages & insurance is significantly better than Kmart, whatever that means. This is a depressed area (low wages & high unemployment anyway), so maybe the increase of consumers coming in from 20-50 miles out would be a plus. Our almost exclusive service oriented economy doesn't lead to many solid "hard manufacturing" opportunities anymore.