The Friend or Foe Debate over Walmart

Is Wal-Mart good or bad?

Wal-Mart is bad for our local economy, yet we still choose to shop there. As a result the hope of this research is to better frame the friend-or-foe debate over Wal-Mart. Wal-Mart is one of the largest retail chains in the world. When Wal-Mart comes to a community, it brings along with it a number of significant changes. My research will demonstrate some changes are good and others are not so good.

I. Wal-Mart is good.

•A. The good side of Wal-Mart.
•B. How does Wal-Mart help our economy?
•C. The generous side of Wal-Mart.

II. The scarier side of Wal-Mart.

•A. What happens to businesses and there coworkers, when Wal-Mart comes to town?
•B. Competition, having a hard time keeping up.

III. Why do we still go?

•A. Survey, what it proved.
•B. People still shop at Wal-Mart knowing it’s bad.
•C. charts

Conclusion

The friend-or-foe debate over wal-mart

II. Walmart is good
A. Walmart can be good. Opening stores where there’s nothing can help a town. An example is Oakland; this town was on its edge of becoming a ghost town, until Walmart came to town. “I think this is a benefit because there was nothing out here,” (Mike Breuner, of Oakland.) Robert Turner, from Oakland agreed. “I think this is just great, out here, where people are struggling to find work, a job at walmart is better than no job at all. In an area like this that’s been deprived for so long, it’s a start.” (www.sfgate.com/bayarea/johnson/article/sometimes-wal-mart-can-be-a-good-thing.com)

B. This also happened to our local economy in Waterloo.qc there is a business called Raleigh they make bicycles. The factory has been opened since 1973. In March of 2010 they signed a contract with Walmart, changing the town for the better. The contract made it possible for new jobs, 170 new positions. Farid Vaiya, the president of Raleigh Canada wants to see a world where everyone can afford a bicycle. “We are hoping to encourage Canadians to get on a bicycle that they can easily afford” (www.Raleighwaterloo.com)

http://commons.wikimedia.org/wiki/File:Usine_Raleigh_Waterloo_Qu C.

Also Walmart can be very generous when it comes to charity. (www.NBCNEWS.com)Donations went to organizations including the National Teacher of the Year program, hospital aid group Children’s Miracle Network, the Salvation Army, United way, and food bank Americas Second Hart. Information from, http://www.msnbc.msn.com/id/17803920/ns/us_news-giving/t/wal-mart-keeps-spot-top-corporate-charity “Supporting our local communities is at the very heart of Walmarts corporate giving philosophy. Our stores and clubs are empowered to support the issues and causes that are important to their neighborhoods” Walmart spokeswomen, Shannon Frederick Walmart stores inc. increased its charitable giving 10 percent last year to $272.9 million. But do all these things make Walmart good? http://blog.childrensmiraclenetworkhospitals.org/2011/04/celebrating-our-partners-walmart.html

II. The scarier side of walmart.

A. If you really-I mean really-want to scare the locals next Halloween, here is an early costume idea for you or your kids: Dress up as Walmart. Yes, few things strike fear and a healthy does of controversy into communities as dose Walmart. When a Walmart moves into town, it hurts our small businesses, forcing them to lower there price just so people will consider shopping there, leaving large impact on them, and having to lay off coworkers, all for our rollback prices. Its not only small businesses being hurt, it can also crush the companies it does business with. Remember Vlasic’s Pickles? http://www.hangingoffthewire.com/2011/02/vlasic-pickles-recipes-giveaway-5.html • Well Walmart was there largest customer, demanded a low price on pickles for their gallon jar size, Vlasic supplied them. The price was less than $3.00 a gallon, leaving Vlasic with a minimal profit.

“A year’s supply of pickles for less then $3.00” Vlasic’s options were none if they wanted their product in Walmart as the price was a demand not a request. The effect of the pricing would spread to the rest of Vlasic’s customers as well. The $3.00 a gallon for pickles at Walmart was driving down prices at the rest of the retailers who carried Vlasic. Other retailers would not carry for $5.00 a gallon when their competitor Walmart sells for under $3.00. Vlasic went bankrupt, and bought by Pinnacle foods that were later bought out. Charles Fishman December,1,2003 ([email protected])

•B. Competition is having a hard time keeping up. (Bill Mah, Edmonton journal October 12, 2012) Zellers couldn’t compete with Walmart anymore. “WalMart claims that, nine out of ten Canadians shop at Walmart Canada, The cannibalization of Zellers stores.” Al Norman www.huffingtonpost.com Walmart plans to take over the Zellers locations and turn them into Walmart supercenters. It is not confirmed yet. A supercenter is a one-stop shopping format selling groceries, produce, and more, even having a pharmacy, Tim Hortins, hardware store. at 140,000 square feet. “It’s more of an intimate offering.” Said store manager Mark Thorrougood, Of Walmart supercenter in Canada.

http://www.villa-moonlight.de/umgebung/cape-coral.html

CIBC world markets released a 14 page report called Walmarts Canadian
supercenters: Trade Area Damage. The study looked at the town Scarborough Ontario. According to CIBC, one year after a Walmart supercenter opened $18.2 million in sales came mostly from two sources: $5.2 million from a Walmart discount store that the company shut down, when the supercenter opened, and $10.4 million when a price chopper grocery store closed.

“Most of the sales come from local chain competitors,”  the analysis said. 94% of the Walmart supercenter sales came from either its own closed Walmart (29%) or other grocery competitors (65%). $17.1 million in Walmart grocery sales came from other cash registers. It’s no secret that Walmart will have a hug impact on the Canadian grocery business. Once again when giant retail chain stores come to town, they represent a form of economic displacement, not economic development. The Walmart takeover of Zellers stores amounts to little more financially than running in place—which as a growth strategy will take the Canadian economy nowhere.” (The report concluded from Walmarts Canadian supercenters: Trade Area Damage.)

http://www.globalnews.ca/canadas+remaining+64+zellers+stores+to+close/6442686687/story.html

III. Why do we still go?
A.It adds up to a simple case of walmart being in everybody’s proverbial grill. According to my survey, there are a large amount of people who shop at walmart, compared to the people who don’t. The minored of us believe walmart is good for our economy. People will still shop at walmart knowing that it is bad for our economy, Even though they new businesses that have been affected by walmart. The sad truth is that my survey proved that people would still shop at walmart, even if it was ruining our local economy. It’s a case of the, I want what I want disease, and humans are dying from it.