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The Hoax in Wal-Mart - Essay Example

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Wal-Mart offers the cheapest prices for retail goods and has succeeded to be one of the most profitable companies in the world. However, Wal-Mart is actually deceiving Americans because what the company does is to kill small entrepreneurial retail stores. …
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The Hoax in Wal-Mart
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The Hoax in Wal-Mart

Download file to see previous pages... It employs over 2 million people, qualifying as the largest job provider in the private sector in the U.S, Canada and Brazil. With staggering revenue of four hundred and five billion dollars, the nearest competitor seems like a dwarf. Though these statistic depicts a success story, there a lot of hideous play behind the scenes.Wal-Mart trades more commodities with china as compared to other retailers in America. The yearly volume is to the tune of $25 a year. This mega imports cannot come at no cost to the economy and down to the other small retailers. Through its claim of being the apostle of the customer and its slogan of low cost, it pushes the suppliers to supply goods at the lowest cost possible. This ever-increasing pressure forces many suppliers to manufacture their goods outside the country where the labor is cheap. The imported merchandise is thus able to meet Wal-Mart’s demand on price. On a reflective note, how many stores are able to put such demands on suppliers? As the former chief executive officer of the now closed down Pillowtex observed, Wal-Mart inverted the natural order of the supplier having the say. Because of this, there arises an enormous disparity in the pricing of goods in Wal-Mart and other retail stores. When such a phenomenon occurs, the entire populace will certainly be persuaded to shop at the cheaper option. What follows is low turnover in competing stores and their eventual closure. ...Download file to see next pagesRead More
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