I’ve heard this too. I’m a certified Child Passenger Safety Technician… a car seat geek. WalMart doesn’t carry Britax (one of the top of the line car seat manufacturers) because Britax won’t play by WalMart’s pricing rules. Or, so I’ve been told…
The Wal-Mart Effect on Inflation
Daily Policy Digest
Economic Issues / Economic Growth and Inflation
Monday, May 13, 2002
One reason the Federal Reserve is less concerned about inflation than the European Central Bank, say economists at UBS Warburg, is the deflationary impact of America’s more competitive retail environment.
They recently evaluated the impact of Wal-Mart Stores Inc. on grocery prices in locations where its Supercenter stores have been undercutting traditional supermarket chains.
The survey found that rival’s prices for grocery items were as such as 27 percent to 39 percent higher than Wal-Mart’s – with the average discount offered by Wal-Mart stores for a comparable basket of goods running about 20 percent.
Also, Wal-Mart’s presence in a market forced down rival stores’ prices by some 13 percent.
This spells less pressure on U.S. household budgets than in Europe – where grocery competition is less intense.
And, of course, that puts less pressure on the Fed to step on the monetary brakes.
Source: Gene Koretz, “Economic Trends: Wal-Mart vs. Inflation,” Business Week, May 13, 2002.
For text
http://www.businessweek.com/magazine/
content/02_19/c3782040.htm
Much has been written about the “Walmart effect” on inflation… and the economy in general…cheaper groceries mean less hunger in this world… I just think that is a positive…
Oh… , knitting guy, my reference to socialism was because Quiara referred to herself as being a “democratic socialist” in the 7th post on this thread…I am a big fan of Capitalism…
I would like all to know that I respect and value everyone’s opinion … If we all had the same opinions it would get kinda boring…and I am encouraged that we all feel that these issues are important enough to debate…
I think by discussing the issues we all are so much better off…
The press seems to get so much wrong ,it takes us talking back and forth to sort out the “real truth”… How did we get so “off topic”??? LOL
I haven’t shopped at Wal-mart in over 3 years. I actually pay LESS by stock-piling than I ever did buying Wal-mart’s “low everyday prices.” I am quite sure that this study did their comparison on a “shelf-by-shelf” study rather than through real-life purchasing. If I bought that way then I probably would see a 30 percent inflation in my grocery bill. But I buy long-range rather than week-to-week. If chicken is B1G1 this week I will buy 8 to get me to the next time they are on sale (usually every 2-3 weeks) So rather than buying Wal-mart’s prepackaged “solution-filled” chicken that is always $6 for 3 half breasts I am buying all natural solution-free chicken at $12 for two packages of 5 breasts each (so rather than paying $2 a half breast I’m paying $1.20 per half breast)
Ethics are a very important thing for me when I go shopping. Unfortunately, I see more and more Americans (and other nations as well) who believe that their own bottom line is more important than how people are treated.
Ya know, one little aside to throw in there with Pat’s article posting…
San Diego, CA has blocked Wal-Mart from building any of their stores into super centers. Originally, the “ban” was all of southern California, but my sister says there’s a supercenter that was recently built in Hemet near her. I know in San Diego, the reasoning behind this was the “Big 3” (Ralph’s, Vons, and Albertson’s) have such a huge stranglehold on the chain grocery market that their union is the one blocking the Wal-Mart expansion. It makes sense if you think about it.
Personally, I’m not a fan of Wal-Mart’s craft selection. Their fabric (other than quilting fabrics) has never been something that I would buy to make an outfit. I never found anything I liked. As for their yarn…it’s currently the only place I can get Bernat Baby (the fingering weight) without ordering it online. Fortunately (?) I don’t make too many things with that weight yarn that I need to stock up. I may just do it though, since the skeins are just under $2 a ball.
I can’t afford to go to a LYS for specialty yarns. I live on Bernat and Paton’s. I can’t afford going to alot of stores for the things that I can get at Wal-Mart. The words fixed income and tight budget have nothing on my bank balance.
Yes, I understand that we are all on budgets and have to make our money go as far as we can…but with that said, I also am looking at it from the persepective of someone who not only is fighting the “WalMart battle”, but am friends with others who are as well.
Small businesses are not out to cheat anyone - just because their prices may be higher does NOT mean they are greedily trying to rip off everyone who walks through their doors. Since they are unable to buy in the HUGE quantities that Wally World can, to stay in business the have to charge more even though the merchandise may be the same.
To me, this is not the best example of capitalism - one giant conglomerate obliterating small businesses. Of course the small business can’t compete. Sadly, the extras we do offer don’t even begin to compensate in the strive for the “cheapest money can buy”. We have experienced people working for us, we do whatever we can to help our customers, we deliver merchandise to them…and still hear “but I can buy it at WalMart for $1 cheaper” (this after we’ve spent an hour helping them figure out what it is they are needing).
Small business also has to pay it’s employees, uemployment taxes (and we don’t rely on mostly part-timers to avoid employment extras), workment’s comp, etc.
I fear for the day when WalMart is all that’s left - and after putting all the the little mom and pop and specialty stores out of business, decide they no longer want to supply whatever it is that you (figuratively) are relying on them for. Right now we see it happening in the fabric/yarn/craft departments…later on, it could be the grocery department (or, after having driven out all the competition, their prices go right back up to where the “traditional” stores have been).
Also, it’s been my experience that when a WalMart comes to town, they get all kinds of tax breaks, whereas someone trying to open up a small mom and pop store gets no special help at all. No wonder they can’t compete - not only do they have to make their basic expenses, they have to compe up with the appropriate property taxes (which are often deferred for WalMart for up to 10 years…at least where I live):tap:
I hear your plight. I too will end up at Walmart occasionally for a ball of yarn. And lets face it…there are some projects that are best suited to the things that you can get at Walmart, but I have to agree, they are stripping all that matters away. I am lucky enough to live near enough to a Michaels (albeit I find them not much better, high priced and really…not that abundant in choice). But I tell you…it is the little shop that I miss. I have a few, all of them are a trek.
It is Walmart and Michaels that knocked Lewiscraft out of business (a Canadian craft chain) which was maybe not the best Yarn section, but it did carry Canadian sizes. For example, the nearly impossible to find 7mm needle, which falls inbetween the US 10.5 and 11 sizes. I do have patterns for these needles, and Michaels and Walmart just do not carry them being US companies!
Either way, the crafting community is not a small one. It really shouldn’t be shoved into a corner.
I cut this article out of the Pittsburgh Gazette because it made sense to me…To assume that anyone who does not oppose Walmart is somehow "for " unethical business practices is silly and untrue… we all are for the little guy, we all want small businesses to succeed… we just have different opinions on how to accomplish that.
Pittsburg Gazette… Sept. '06
Wal-Mart is the favorite whipping boy of those who have lately taken to calling themselves “progressives.” They complain about Wal-Mart’s low wages and high number of employees (54 percent) who do not qualify for its health insurance plans.
(Funny, but these critics don’t hurl the same complaints, though they could, at the more-stylish discount retailer Target.)
Lately, more analytical and less partisan voices have risen to point out the enormous economic good that Wal-Mart has done for lower-income Americans.
Studies show that Wal-Mart’s discounting on food alone saves shoppers $50 billion per year; it does one-fifth of the country’s grocery business and the typical shopper saves an average of 17 percent. Compare that benefit to the federal government’s $33 billion food-stamp program.
Critics also complain that 5 percent of Wal-Mart’s workers are on Medicaid. But as Sebastian Mallaby pointed out in The Washington Post last year, that number is typical for large retail companies, and the national average for all private companies is 4 percent.
So when one local anti-Wal-Mart group uses the name “Communities First!,” it raises questions. How exactly do you define community? The neighbors who’d like to cut their grocery bills? Those who want a job that pays, on average, nearly double the federal minimum wage?
If you’re asking us to shut out a beneficial big guy to favor the little guy who can’t offer as much but charges more for it, then no thanks. That’s not how free markets work.
The state in which I live already has a minimum wage well above the federal minimum wage, so that point is moot to me.
Also, this whole topic started as a plea to help salvage the fabric/yarn/craft department…which I don’t think Target has (don’t know for sure, as we don’t have a Target store here).
We have 2 grocery stores in town - other than WalMart - one is a small family chain, they other is a larger, employee-owned chain. Still, neither one is anywhere near the size of WalMart…but they also provide jobs and the one that is employee-owned also gives them a long term benefit.
Years ago, I got my yarn at KMart, then they quit handling it, so I switched to Jack’s. They switched management and left town, and I was left with WalMart. I’d love to have a Michael’s or Hobby Lobby, but no such luck. Since I don’t, although I don’t care for WalMart, I’m still lobbying for them to keep their yarn department. Yes, I could order online, but am trying to cut credit card usage to a minimum - I’m tired of the hassle of cc’s.
Ideally, I’d love to have a mom and pop place that I could rely on, but no luck there either…and unless WalMart does do away with it’s yarn department it doesn’t look like there’s any hope of that happening.
It does come down to how you want to live your life and what you want to support. I have never been in a Walmart and doubt I ever will. There are brands of products I don’t buy because of the corporations behavior. That’s my choice and I don’t expect everyone to feel the same way. I don’t shop much and try and grow some of my own food. I bake my own bread from wheat from local growers who farm sustainably. Costco probably gets most of my money and I will probably be buying some yarn online when I run across good sales.