Seth's Info

I was talking to a family friend recently who was expressing her frustration about a new Walmart being built in her town. The site they had chosen required the destruction of a historic building she had always admired, and she questioned aloud whether Walmart was really as “evil” as they sometimes seemed to appear. This question reminded me of a time when, during one of her pregnancies, Jenny cried hormone-driven tears of happiness after watching a Walmart commercial where the yellow happy face bounces around the store, generously lowering prices for the customers. Fortunately, this effect was only temporary.

In my experience, Americans generally have negative opinions about Walmart. And yet we just can’t seem to help ourselves when it comes to taking advantage of the low cost goods they offer. A quick internet search reveals a large number of sites dedicated to exposing “the truth” about one of the world’s largest corporations. Some are more rational than others, but it makes for good reading.

So what are the facts?

-- Walmart is one of the top 5 corporations in the world (along with the major oil companies) and has annual sales around $250 billion
-- As of July 2006 Walmart had over 3200 stores and super centers in the US, with over 1.3 million employees.
-- The Walton Family (Sam Walton’s widow and 4 kids) owns about 40% of Walmart Stock and is worth around $100 billion
-- The average Walmart employee makes about $8.00 per hour.
-- Walmart is the single largest importer of foreign-produced goods in the US, and, if treated as its own country, would rank 5th in Chinese exports.

Like any publicly traded corporation, Walmart’s primary goal is to maximize profits for its shareholders. Walmart is ruthlessly efficient at keeping costs low, allowing them to sell goods cheaper and still turn a profit. The methods they use to accomplish all of this tend to be the focus of complaint. They include low employee wages, expensive health coverage for employees, using their massive purchasing power to force suppliers to cut costs at their expense, vehement anti-union policies, and a long list of other sinister management practices. Here’s a link to a great article ("The Walmart You Don't Know") that I read a few years ago in Fast Company. It outlines the issues far better than I ever could, and provides some good examples of just how Walmart operates

Jenny and I occassionally shop at Walmart, but my personal approach is to shop there only if they have a particular item I need that I can't find somewhere else. I’m convinced that Americans could do without much of what they purchase at Walmart (and other chain retail stores), and they would undoubtedly be better off saving their money for another day. Walmart and other super stores excel at prompting the impulse buy, so just get in and get out before you end up buying that $2.97 gallon jar of pickles that you don't really need.

One other note…..make to sure the catch the end of the Tour de France this weekend. American Floyd Landis followed up near-disaster on Wednesday with sheer determination on Thursday and sits just 30 seconds off the lead. With a strong time trial on Saturday he could be wearing yellow at the Champs-Elysees on Sunday. Also, Tiger Woods is at the top of the leader board at the British Open, so there should be some good golf to see this weekend.

Our family is heading off to Sea Bright Saturday morning, so I’ll probably check in from there. I am feeling pretty good and trying to keep busy. My esophagus is acting up again, but it is not as bad as it’s been in the past.

Take care,
Seth