MSN's homepage today featured an article about Walmart and stated why we should love and why we should hate the franchise superstore. I had to read it because I shop at Walmart quite a bit. Walmart's been criticized for putting locally-owned small town businesses out of businesses by offering very cheap prices. They do this by, according to the article, bullying vendors into cutting profits to the bone and of course by ordering in bulk. I actually kind of liked reading this article because it concluded with this statement: "In short, Wal-Mart is one of the few corporate giants still standing using the same strategy upon which it was founded: It sells discount goods at a fair price" (Macke, 2009). A lot of people think that Walmart shouldn't be allowed in certain towns, such as Valley City, because it would put other businesses out of business. It probably would because Walmart is a corporation that knows how to do business and does it well. I'm not saying that I wouldn't shop at a locally-owned over-priced business before Walmart, but I think some shop owners can learn a valuable lesson from Walmart.
On the other hand, this article tells us why we should hate Walmart. I didn't necessarily agree with everything in this article. The author argues that she hates Walmart because it usually offers its employees poverty wages (which I'm assuming she means minimum wage because otherwise it would be illegal). What's wrong with that? I worked at a grocery store for two years making just above minimum wage. It was a low skill level job that didn't require enough work to be paid more than what I was making. Sure, I thought minimum wage was too low at the time, but I wasn't expecting to make the big bucks by stocking shelves and checking grocerices. She also argues that Walmart doesn't offer its employees health insurance. To me, Walmart doesn't seem like the type of company that would offer health insurance except for maybe to its managers. She also doesn't like that Walmart insists on lowering its prices. Their low prices are what makes them so popular! If other businesses are suffering because of this, maybe they should lower their prices or offer some sort of benefit.
I do have to argue, though, that small town locally-owned businesses can't just offer as low of prices as Walmart does. I understand that Walmart is a huge corporation with plenty of resources. But, in my opinion, local shops can do other things to attract business, like for instance, keeping their shelves stocked. I'm not trying to demean Pamida or anyone who works there, but it seems like every time I go in there for something, it's not there or it is ridiculously over-priced. I would shop there a lot more if they had something more to offer me because I really do believe in supporting my local economy. I also think local businesses have the huge opportunity of being able to be personable and friendly towards its customers.
That's just my opinion on Walmart; I'm curious to here yours! Do you love or hate Walmart? Should it be allowed in Valley City?
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I love shopping at Wal-Mart. I go around, pick out everything I need, and the total is $30. I'm grateful that the prices are low, although the quality sometimes leaves you wanting.
ReplyDeleteI know that Wal-Mart put a few businesses in my hometown out of business, but it was mostly the stores that everyone hated and only shopped there out of convenience. We still have locally owned businesses and grocery stores and such and Wal-Mart has been in our town for about two and a half years.
I will admit that I am a Wal-Mart shopper. It has by far the most reasonable prices on the groceries and toiletries I need to run my household. In Fargo, there are lots of other places to go: Sun-Mart, Hornbacher’s, Cash Wise, Target, K-Mart, Walgreens, etc., but Wal-Mart has proven to be the most reasonable overall. As for the quality of the goods I buy, I have never had a problem with a leaky shampoo bottle, sour milk, or bugs in my crackers.
ReplyDeleteI am all for supporting your local economy, but there does come a point where that just isn’t feasible anymore. For example, if my parents were to buy a gallon of milk in our hometown, it is currently $6.50. When I buy a gallon of milk at Wal-Mart, I pay right around $3.00. I hate to say it, but with the rates that our communities are growing, the ability of mom and pop shops to compete will continue to diminish.
I don't have a problem with Wal-Mart at all. I believe it is just capitalism in action. However, I'm not sure if it would make sense for a town the size of Valley City to bring one in. In bigger towns, smaller stores are allowed to compete as people search for variety. In smaller towns, Wal-Mart may seem like the only option which would put local businesses out of business. I wouldn't complain if Wal-Mart came to Valley City, but I have survived here without it.
ReplyDeleteI work hard for my money as does my husband. The last thing we want to do is to spend it irrationally or irresponsibly. I shop at Wal-Mart for things such as home goods, beauty supplies, and some types of groceries. In this economy I need to do what it takes to make my dollar stretch further.
ReplyDeleteI agree that is retailers want to appeal to more shoppers they need to find out what attracts that client base to shop. For me I want a diverse selection of products at good pricing. If the local mom & pop stores would band together for their purchases they just might find that they can be competitive with the big box stores.
Here is an article I found that could help the locals. "Competing With Big Box Stores: Tips for Retail Competition"
http://retail.about.com/od/competition/a/big_box_stores.htm
Valley City doesn't have a Wal-Mart?? Bottineau has a Wal-mart (we just got it almost 2 years ago) and we only have 2500 or so here. But then we also have the Lake Metigoshe population, the Turtle Mountain reservation, Canadians, and all the little small towns all around. So I guess that makes their client base a bit bigger.
ReplyDeleteOn the subject of putting small businesses out of business, our local businesses were irate when the city was talking about letting Wal-Mart in. And when it did come, the local Chamber put on a seminar for local businesses on that very topic mentioned--How small businesses can compete with big box stores. Only one business owner came.
Another local business owner stayed open for a couple months and then said she had to go out of business. She never marked any of her over-priced stock down more than 50%.
I'm not a big Wal-Mart fan, but when reality hits, the smaller businesses who want to survive have to at least try. If they give up as easily as the above-mentioned business owner, of course they won't make it.