Walmart does NOT have an overall negative impact on small businesses

[CPA]

First off, I'm not going to post this in P&N because there have been plenty of WalMart bashing threads in OT. So I felt my post of a defense of the company deserves the same forum.

While I am not a Walmart cheerleader, I do frequent the company and see very little wrong with how they run the company (illegal workers excluded). Now the biggest issue I have with the Walmart argument are the folks, and it happens in every Walmart thread, that make the erroneous accusation that Walmart is the sole cause of mom & pop shops (small and medium businesses) shutting down. Well, that may be look to be true on the surface, but what isn't reported is that that small & medium-sized businesses have grown from 1995 to 2002.. From experience, I know of a small business owner who wouldn't have survived if not for Walmart. Walmarts allow (or at least used to allow) jobbers to come in and stock their wares, similar to Home Depot or Lowe's. Yes, Walmart gets a cut, but the small business owner gets a much larger consumer base than would be available at it's small location.

Though I don't have empirical data, I submit that the majority of owner's of small businesses who "may" have closed due to Walmart, have in fact gone on to different business ownership opportunities. Usually, once and entrepenuer, always an entrepenuer. Also, many small companies are in existance because of Walmart. I don't care for the "But do you see how they treat their vendors argument", either. That's a weak argument to cover up the other weak argument that Walmart has caused the demise of small businesses. Businesses need to be flexible and businesses need diversify their customers, just like you would diversify your stock portfolio. And if the business couldn't accomodate Walmart they would either close down or move on.

 

[KK]

The people that hate walmart because they are successful are too stupid to understand anything you are saying.

Now I dislike walmart because their damn checkout lines are too fvcking long.

 

[ElFenix]

a dynamic economy always destroys jobs.

 

[mordantmonkey]

what exactly has shrunk since 1995?
just because small business has grown overall is no indication of walmarts impact in certain markets (specifically small rural communities).

 

[mugs]

Originally posted by: KK
The people that hate walmart because they a successful are too stupid to understand anything you are saying.

Now I dislike walmart because their damn checkout lines are too fvcking long.

:thumbsup: I've always found Target to be a more positive shopping experience, so I shop at Target.

 

[Vic]

Originally posted by: ElFenix
a dynamic economy always destroys jobs.

And creates them at the same time. Change is the only constant in business.

 

[Linflas]

Originally posted by: mugs

Originally posted by: KK
The people that hate walmart because they a successful are too stupid to understand anything you are saying.

Now I dislike walmart because their damn checkout lines are too fvcking long.

:thumbsup: I've always found Target to be a more positive shopping experience, so I shop at Target.

Personally I like shopping from home as much as possible so I don't encounter lines, traffic, or crowds of my fellow citizens.

 

[yobarman]

Walmart will keep growing and growing until it is so huge it collapses on itself. They all do.

 

[Vic]

Originally posted by: mordantmonkey
what exactly has shrunk since 1995?
just because small business has grown overall is no indication of walmarts impact in certain markets (specifically small rural communities).

Small rural communities have been struggling since the Great Depression as the country steadily (sub)urbanizes.

 

[mugs]

Originally posted by: Linflas

Originally posted by: mugs

Originally posted by: KK
The people that hate walmart because they a successful are too stupid to understand anything you are saying.

Now I dislike walmart because their damn checkout lines are too fvcking long.

:thumbsup: I've always found Target to be a more positive shopping experience, so I shop at Target.

Personally I like shopping from home as much as possible so I don't encounter lines, traffic, or crowds of my fellow citizens.

I do too, but Target gives me instant gratification, and some stuff just isn't practical to shop for from home (i.e. bread).

 

[JS80]

Originally posted by: ElFenix
a dynamic economy always destroys jobs.

A dynamic economy creates and destroys jobs easily, but an inflexible economy is near impossible to grows jobs.

 

[Vic]

Originally posted by: yobarman
Walmart will keep growing and growing until it is so huge it collapses on itself. They all do.

Exactly. Uncoerced monopolies are impossible in capitalism. As soon as a company captures enough market share to relax its cost controls and artificially inflate its prices, it comes under competition from outside capital seeking a share of profits.

 

[Linflas]

Originally posted by: Vic

Originally posted by: yobarman
Walmart will keep growing and growing until it is so huge it collapses on itself. They all do.

Exactly. Uncoerced monopolies are impossible in capitalism. As soon as a company captures enough market share to relax its cost controls and artificially inflate its prices, it comes under competition from outside capital seeking a share of profits.

Monopoly? By what stretch of the imagination could Wal-Mart be considered a monopoly?

 

[40Hands]

Why do you feel the need to defend Wal-Mart?

 

[Vic]

Originally posted by: Linflas

Originally posted by: Vic

Originally posted by: yobarman
Walmart will keep growing and growing until it is so huge it collapses on itself. They all do.

Exactly. Uncoerced monopolies are impossible in capitalism. As soon as a company captures enough market share to relax its cost controls and artificially inflate its prices, it comes under competition from outside capital seeking a share of profits.

Monopoly? By what stretch of the imagination could Wal-Mart be considered a monopoly?

None. IIRC, they only have roughly 20% of the retail market in the US. Nowhere near a monopoly. I brought this up because (1) Wal-Mart is often accused of using monopolistic-like business practices by its detractors, and (2) to concur with yobarman's statement.

 

[DurocShark]

Well, in some markets Wally World *is* a monopoly. But I agree with the general feeling that it isn't wrong. Part of the market.

There was a time that Kmart was looked at the same way. And after that, Target was the evil empire. Now it's WalMart.

 

[Cruez]

The number of businesses with one or more owners but no paid employees grew nationwide from 17.0 million in 2001 to more than 17.6 million in 2002, a growth rate of 3.9 percent, according to a report issued today by the U.S. Census Bureau. The rate of increase during the 2000 to 2001 period was 2.7 percent.

That is hardly what would be called a "business" These are mostly people working out of their house.....

The normal shops that chinaMart puts out of business are small shops that you would find in an ordinary town that have a few employees.

 

[Kadarin]

Another issue with Walmart: How it affects suppliers/vendors

http://www.fastcompany.com/magazine/77/walmart.html

 

[FoBoT]

I :heart: Wal-Mart

 

[ggnl]

Costco v. Wal-Mart: How They Stack Up

Global Workforce
Wal-Mart: 1.6 million associates
Costco: 113,000 employees

U.S. Workforce
Wal-Mart: 1.2 million
Costco: 83,600

U.S. Union Members
Wal-Mart: 0
Costco: 15,000

U.S. Stores
Wal-Mart: 3,600
Costco: 336

Net Profits (2004)
Wal-Mart: $10.5 billion
Costco: $882 million

CEO Salary + Bonus (2004)
Wal-Mart: $5.3 million
Costco: $350,000

Average Pay
Wal-Mart: $9.68/hour
Costco: $16/hour

Health Plan Costs
Wal-Mart: Associates pay 34% of premiums + deductible ($350-$1,000)
Costco: Comprehensive; employees pay 5-8% of premiums

Employees Covered By Company Health Insurance
Wal-Mart: 48%
Costco: 82%

Employee Turnover (estimate)
Wal-Mart: 50%
Costco: 24%

 

[CPA]

Originally posted by: BroeBo
Why do you feel the need to defend Wal-Mart?

The same need that so many have in bashing it.

 

[CPA]

Originally posted by: Cruez

The number of businesses with one or more owners but no paid employees grew nationwide from 17.0 million in 2001 to more than 17.6 million in 2002, a growth rate of 3.9 percent, according to a report issued today by the U.S. Census Bureau. The rate of increase during the 2000 to 2001 period was 2.7 percent.

That is hardly what would be called a "business" These are mostly people working out of their house.....

The normal shops that chinaMart puts out of business are small shops that you would find in an ordinary town that have a few employees.

That is why I posted the census data. The press release was only related to those types of business. All in all, small businesses, those with and without employees have grown.

 

[CPA]

Originally posted by: ggnl
Costco v. Wal-Mart: How They Stack Up

Global Workforce
Wal-Mart: 1.6 million associates
Costco: 113,000 employees

U.S. Workforce
Wal-Mart: 1.2 million
Costco: 83,600

U.S. Union Members
Wal-Mart: 0
Costco: 15,000

U.S. Stores
Wal-Mart: 3,600
Costco: 336

Net Profits (2004)
Wal-Mart: $10.5 billion
Costco: $882 million

CEO Salary + Bonus (2004)
Wal-Mart: $5.3 million
Costco: $350,000

Average Pay
Wal-Mart: $9.68/hour
Costco: $16/hour

Health Plan Costs
Wal-Mart: Associates pay 34% of premiums + deductible ($350-$1,000)
Costco: Comprehensive; employees pay 5-8% of premiums

Employees Covered By Company Health Insurance
Wal-Mart: 48%
Costco: 82%

Employee Turnover (estimate)
Wal-Mart: 50%
Costco: 24%

And your point is what? They have different business models? Good, that's what makes America great.

 

[Vette73]

Originally posted by: Cruez

The number of businesses with one or more owners but no paid employees grew nationwide from 17.0 million in 2001 to more than 17.6 million in 2002, a growth rate of 3.9 percent, according to a report issued today by the U.S. Census Bureau. The rate of increase during the 2000 to 2001 period was 2.7 percent.

That is hardly what would be called a "business" These are mostly people working out of their house.....

The normal shops that chinaMart puts out of business are small shops that you would find in an ordinary town that have a few employees.

Shhhh... no one wants to know the TRUTH. The cool catch headlines are cooler.

 

[CPA]

Originally posted by: Marlin1975

Originally posted by: Cruez

The number of businesses with one or more owners but no paid employees grew nationwide from 17.0 million in 2001 to more than 17.6 million in 2002, a growth rate of 3.9 percent, according to a report issued today by the U.S. Census Bureau. The rate of increase during the 2000 to 2001 period was 2.7 percent.

That is hardly what would be called a "business" These are mostly people working out of their house.....

The normal shops that chinaMart puts out of business are small shops that you would find in an ordinary town that have a few employees.

Shhhh... no one wants to know the TRUTH. The cool catch headlines are cooler.

still waiting for the evidence.......