Why bash Walmart? Let’s look at the store’s positive impacts.

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Watch for falling prices and negative comments when getting near any Walmart. In the history of consumers, Walmart is the most frequented store, but it has also been met with much negativity wherever it goes.

Complaints against the retail giant range from poor working conditions to long lines to resistance from local business owners. The benefits Walmart provides in our community and nation are rarely pointed out. It can save consumers and local businesses hundreds of dollars on an individual basis and provide much needed jobs.

Most recently, Walmart has announced the expansion of its generic prescription drug program. The retailer offers a 30-day supply of common generic drugs ranging from penicillin to prednisone for only $4 and a 90-day supply for $10.

In order to make the program more accessible to consumers, Walmart is now offering prescriptions online with free shipping. Walmart’s head of health and wellness said “our $10 mail delivery prescription program is a true reflection of Walmart’s commitment to drive unnecessary costs out of the health care system so Americans can live healthier, better lives.”

Sounds like Walmart has accomplished more to make health care affordable recently than Washington, D.C.

In modern-day mythology, it is said Walmart rolls into town dropping prices and driving mom and pop stores out of business. This notion is statistically unfounded. In fact, a Cato Institute report concluded that over the past 30 years, Walmart’s growth has had no significant impact on the overall size and growth of U.S. small business activity.

The study, entitled “Has Walmart Buried Mom and Pop,” used a variety of methods and statistics. It was also concluded that Walmart has had an impact on putting some Mom and Pops out of business on a local basis, but in a macro perspective the impact was null.

Walmart has thrived during this recession in comparison to other retailers as consumers look for the most economical prices. As a result, Walmart’s sales in Q4 last year jumped 7.2 percent to $401 billion.

Walmart’s hourly employees were rewarded wtih a bonus in March that totaled $2 billion. This $2 billion in bonuses can be viewed in the same light as any of the recent stimulus checks we have received in the mail from Uncle Sam. However, Walmart did not have to finance its checks and go further into debt.

Where do most employees in America work? Far and away, it is Walmart. The largest employer in the United States, with over 1.5 million employees, is also very selective in its hiring process, statistically.

A recent opening in Florida had Walmart’s hiring center there swamped, as there were six applicants for every 1 job. The store’s compensation and work environment must be attractive to at least part of the labor market.

Opponents of Walmart are quick to complain about the impact on the surrounding community or point out its so-called terrible working conditions. A company the size of Walmart is bound to have isolated negative events. Some employees will endure unpleasant conditions, and some Moms and Pops will be put out of business.

However, in the big picture, millions of Americans can afford groceries and prescriptions because of Walmart, and many people who would not have jobs do because of Walmart.

Richardson’s column runs Wednesdays on the editorial page.

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Reader Reactions

Flag Comment Posted by Devil on September 30, 2009 at 3:26 pm

Anyone who dislikes WalMart and the fact that a lot of their prodcuts are “made in China” should not shop there.  It’s that simple.  You can’t change the world until you change yourself.  WalMart is here to stay and most who have commented negatively towards it have added that they too shop there.  Why be a hypocrite?

Flag Comment Posted by TobyKat on September 23, 2009 at 6:38 pm

Well I am a Wal Mart Shopper—hesitantly. The produce prices are reasonable, as are the frozen foods, dairy, etc. But I am disgusted that the clothes, linens, etc., are mostly Made in China. WalMart has sold USA makers to the Chinese.  And be sure to read what the meat is injected with. Chinese toys? Formula?  What is wrong with buying American.  Yes, you can stretch a dollar, but where is it going. Not to the employees or the community (eg, Leaves for Learning)

Cato? You might as well have cited Fox News.

Flag Comment Posted by walker on September 23, 2009 at 6:31 pm

Mr. Richardson,
I enjoy your column of good sense and thorough explanations.  Keep up the good work.

Flag Comment Posted by county mom on September 23, 2009 at 11:07 am

wal-Mart is in general reasonably priced. However, until the Wal-Mart upper eschelon came to visit the floors were nasty, there were too few cashiers open at high volume times. Surely with all the computerization, Wal-Mart knows when to expect crowds yet they let people stand in line for a long time because lanes are closed. Then there is service. I have asked an employee where something was and they didn’t know. And, recently I stood at the photo counter for over five minutes while the lone employee logged in bags of pictures. I had to holler to get her atttention. One of her co-workers who was trying to buy a drink even walked away. This is typical of the retail giant. It has everything and they know people are going to shop there. I know several employees who tell me repeatedly that Wal-Mart is cutting hours to help boost profits. So do some research before you become a Wal-Mart cheerleader.

Flag Comment Posted by rjma on September 23, 2009 at 9:57 am

You cite the right wing Cato Institute as a source?  The same bunch that denies global warming, denies cigarettes cause cancer, that we should do away with Social Security.  And it shouldn’t come as a surprise that Walmart is one of their biggest corporate donors.

Then you write:  “Walmart’s sales in Q4 last year jumped 7.2 percent to $401 billion.“

$401B is their annual not quarterly sales.  And that includes all their stores and affiliates in foreign countries.

$2B bonus? They have over 1.2M employees so it doesn’t go as far as you’d think. Here’s a few comments I’ve read about that:

“So Wal-Mart gave out an average of $933.60 for each qualified employee in bonus money!  I am a full time qualifying employee and my “bonus” was $16.11 and a “THANK YOU FOR ALL THAT YOU DO!!“ It is all PR trying to make it sound like they care about us. They know we need our jobs so they are cutting hours making our work hours so that we can’t work second jobs. Oh and by the way when Wal-Mart says they donated XXX amount of dollars to charities like CMN, know this, that is donation money from its poor employees not from the corporate accounts”

and

““After making two to three times more money during this year’s blitz day, it was a surprise to us how small our bonuses were this time around. Our big bonus in March was $132 - yet, the manager went to Disney World and the Bahamas with his $80,000 bonus.“

Then Mr. Richardson writes:

“Where do most employees in America work? Far and away, it is Walmart.“

Most employees? 

Isolated negative events?  Do some research starting at walmartwatch.com.

Bear in mind that the profits from locally owned businesses are far more likely to stay around than with a giant like Walmart.

I shop at Walmart. But I think your column gives an incomplete if not distorted version of events.

Flag Comment Posted by Sandalwood on September 23, 2009 at 8:40 am

With a 70% turnover rate they must not be doing everything right for their employees. I bet there isn’t a dozen employees at our local Walmart that has been there five years or more.

I wouldn’t mind them so much if 90% of their stock wasn’t “Made in China”. And, yes, I do shop there but I’d be much happier to bring something home that said, “Made in USA”.

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