How is it Affecting You? • It’s Everywhere • Clueless Consumers • Growing Larger • Expanding Worldwide
History/Background • Sam Walton • Walton’s 5 and 10 - Bentonville • First Wal-Mart Opened in Rodgers, Arkansas • Revolutionary NewRetailing Ideas • Advertising • Cut Costs
Growth Small, Poor Towns First 1974
Growth Small, Poor Towns First 2004
Please view the movie athttp://www.econ.umn.edu/%7Eholmes/papers/Wal1962-2004_nov_05.wmvto see the new store openingsmapped by year
Issues Economy Environment Employees
Pros • Low Paid Workers • Eliminates Competition • Outsourcing • Forgotten Towns
Cons • No Overcharging • Direct from the Factory
Pros • Energy Costs • Current Efforts are PR
Cons • Energy Efficient Stores • Educating Customers
Pros • Pays Less than Others • Poor Compensation • Health Insurance
Cons • Jobs for Unemployed • Purchasing Power
Solutions • Compromise Corporate Gains • Split into Multiple Entities • Attack ActivistsOne Issue at a Time
Conclusion • There are some serious problems with the way the retail world works, mostly in the economics of it, and I often found dealing with sources that support Wal-Mart quite difficult, because I knew that they were just glossing over the issue, whether they understood what was happening under the surface.
Thesis • To counteract the problems that arise from current consumer spending habits and the prices they necessitate, a combination of effort from the corporate and customer levels is required. Shoppers need to think about the consequences that their actions have on themselves and their towns, while employers need to do their part to reduce the consequences they bring as much as possible.