1/29/2005

When Wal-Mart Comes to Town

In an article called "When Wal-Mart Comes to Town" it gives some interesting figures to what happens when Wal-Mart comes to town. It said that stores within a 20 mile radius of 14 Wal-Mart's studied saw sales decrease by 25.4% after five years from when Wal-Mart moved in. Even in our little town of Cedar City you can see where all the business is, and its not downtown. Almost all could relate to the zoo-like atmosphere that Wal-Mart has on a Saturday or Sunday afternoon. It's amazing to see all the people that flock to Wal-Mart to do business. We've all heard about the town meetings that have been held to fight Wal-Mart from coming to towns, and also all the heart breaking stories of mom and pop stores with great history going broke in a matter of months because of Wal-Mart. It's tiring to hear how bad Wal-Mart is. This is nothing more than the growing pains of economic progression. We are not forced to do business with Wal-Mart; we go there willingly because we get more "bang for the buck". It won't be long until we see another "Wal-Mart like" corporation come up the ranks to provide something better to the consumer. It's just economic progression! We're all better off in the end because of it!

10 comments:

Bart said...

I would be lying if I said that I didnt like the cheap prices that Wal-Mart brings to town, but I've worked for them and $5.65 an hour just doesn't cut it. With the huge profits that they are making at Wal-Mart you would think they could share some of that with their employees.

Harry said...

I have heard it said many times by a variety of people that we cannot afford not to shop at Walmart. The reason for this is because they are so cheap compared to all of the other retailers out there. Because they were the smart ones who invested heavily in technology. Not everyone likes walmart, and their are those who will not shop at Walmart. It just comes down to if you are going to save money that is where you go to do it. It is sad to see all of these other smaller businesses going out of business, but how can you compete with Walmart?

Rex said...

Before Wal-mart’s superstore came to town, I shopped mainly at Lins Supermarket for my groceries. Now that Wal-mart is offering this convince it is much easier to pickup my groceries while partaking of their other services such as getting my oil changed. On the off chance that Lins or any other store in town has a better price on the things I need; I will get that item from the other source.

I guess I’m always looking for the better price. I don’t tend to show loyalty to any single supplier. I work dang hard for my dollar and will spend it where I choose. I do fill for the little guy but in the long run Wal-mart does make everyone better off.

Rex said...

Before Wal-mart’s superstore came to town, I shopped mainly at Lins Supermarket for my groceries. Now that Wal-mart is offering this convince it is much easier to pickup my groceries while partaking of their other services such as getting my oil changed. On the off chance that Lins or any other store in town has a better price on the things I need; I will get that item from the other source.

I guess I’m always looking for the better price. I don’t tend to show loyalty to any single supplier. I work dang hard for my dollar and will spend it where I choose. I do fill for the little guy but in the long run Wal-mart does make everyone better off.

Marie said...

Over all walmart my have reduced prices, but they have also reduced quality in the market. In order to sell companies are constantly finding ways to reduce their cost for walmart. I can't say that I don't like to save a buck or two, but this decrease in quality I think has effected other retailers as well.

Chuck said...

I feel that in commenting on this issue that I'm at an AA meeting. Yes, my name is Chuck, I am a Wal-Mart shopper. I for some reason almost feel bad about shopping there. Just as Bruce commented, I too am impartial to where I shop. I read the ads, and which ever store I feel has the lower prices that week, I will shop there. May the best man win!

Emily said...

I like the cheap prices of Wal-Mart just like everyone else does, but like Bob’s comment of how they need to share the wealth. When I think of Wal-Mart I think of how they do run the "little guy" out and hurt the economy in the big picture too. There is a chain reaction in the Wal-Mart case. Wal-Mart demand low prices from all of there suppliers then the suppliers have to cut cost which is pay and so the employees have less money which means less money to spend to help the economy grow.

kenny said...

No one should be embarrassed for shopping at Wal-Mart. Most people make judgments based on what they hear on the news. If you think Wal-Mart is bad for the economy or the community click on this link to learn the truth about wal-mart. http://www.walmartfacts.com/community/nationwide-impact.aspx

Bob if you read this I would like to inform you that in Utah the average Wal-Mart hourly associate earns over ten dollars an hour. I am a Wal-Mart associate and don’t have a collage degree and I personally make over sixteen dollars an hour. Please don’t spread lies that Wal-Mart doesn’t share profits with their associates. I have a profit-sharing account, 401K and stock purchase plan. I know associates who are retiring after working for Wal-Mart for 30 years with over 3 million in their profit sharing account and they never contributed a dime of their own money to. Wal-Mart is the largest corporate giver in the country. With a focus on education, children and communities, Wal-Mart contributes – through the Wal-Mart/SAM’S CLUB Foundation – more than $18,000 an hour, or nearly $5 a second every day of the year.

stockton said...

The very thought of Wal-Mart coming to town will either excite people, because of the low costs and many products, or it could upset you if you are a local small business owner. We can't continue to bad mouth Wal-Mart for coming to town because it's obvious that we can all save money by shopping there, even though it is shutting down other stores. I guess that would and should entice each of us to come up with some sort of niche in the market that Wal-Mart doesn't have(it definitely has to be something good). If we can't do that, then we shouldn't be complaining.

Dr. Tufte said...

-1 for spelling mistakes in Harry's, Rex's, and Marie's comments (waived)

What everyone is sensing in this discussion is that their consumer surplus is larger when they shop at Wal-Mart.

By definition, profits are what owners don't "share" with their employees (profit-sharing being somewhat of a misnomer). And, last I checked, owners are not required to "share" profits, since they bear more risk than the workers do.

LOL Chuck. Rent "What's Eating Gilbert Grape" for the movies perspective on that feeling.