Quote:
Originally Posted by Raerae
The root of the "problem" isn't Walmart though. It's the willingness of people to support that type of business model. Realistically, if most people felt that Walmart (or Best Buy, or Target, or Linens and Things, or Costco, or whatever) was SO horrible, they wouldn't shop there on the principle of it, even if it meant spending a little bit more $. But that isn't the case. It's not Walmart that screwing over small business. It's the people living in that town, thats screwing over small business. But suddenly not supporting their local business's because they can save a few dollars.
All Walmart is doing it providing the good/services that people obviously want. And that cheap crappy products, for low money.
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I'm goingto give you an example of a town.
Bonham TX.
Small town, county seat, approx. 10K people living in it.
No major retailers there, except WalMart. There's a Cato, but the Cato struggles from April - August. No Target. No major grocery store, excepting Brookshire's, which struggles now. No K-Mart. No Dollar Tree (Wal-Mart ran them out within a year of opening...).
Employers there are actually difficult to come by. It's a farm town, in a lot of ways. There are a couple of bigger employers (the State being one of them), but most people either farm/ranch, or work for the school/county/or nursing homes.
Income there is either below poverty, or comfortable farmer types. There's not a lot of middle ground.
The closest serious competitors to Wal-Mart are Target, Albertson's, K-Mart, Kroger, and Big Lots.
30 miles away.
There used to be a Ben Franklin, two western wear stores, two or three video rental stores, a family owned grocery store, a Factory Outlet store, etc. in the town. One by one they closed down because they quite simply COULD NOT keep up with Wal-Mart's pricing, and the convenience can't be beat.
That town, those people are the people Wal-Mart's business plan uses.
Excellent for Wal-Mart, because by default, they HAVE to win.
Not so hot for small business owners.