Wednesday, June 16, 2010

Walmart: The Hell Beast of Consumerism

I hate Walmart. I really do. The store is creepy, it shoehorns itself into small communities and destroys smaller businesses absorbing like Akira on a highway. Remember when your girlfriend was squished between mechanical flesh? It was WALMART.



Walmart has also been in news NUMEROUS times for employee abuse such as women receiving fewer raises and promotions than men. These complaints are here http://walmartwatch.com/ for your internetting pleasure.

But there's this thing about Walmart and really any giant corporation. It didn't just appear out of the depths of hell and gain power through the tears of orphans. It's what is known in the business world as a SUCCESSFUL BUSINESS. A successful business can be simply described as a business that offers a product that consumers are willing to continuously buy. This is a hint to one of my points in this post.

Walmart was founded in 1972 by Sam Walton who graduated from the University of Missouri in Columbia and, after working for JC Penny out of college, in 1944 acquired the lease and franchise on Ben Franklin a variety store. By 1948, Sam had increased the revenue from $80,000 to $225,000 which is the difference between a Jaguar 2010 XFR and a McLaren MP4-12C.


This...


To this!
Yeah I barely know the difference either but it's a lot of money.

Come 1950, the landlord declined to the renew the lease forcing Sam to purchase a five and dime in Siloam Arkansas which would become the headquarters of the eventual super store. Between the 1960's and 70's, Sam hit on a great idea to achieve higher sales while keeping prices lower than competitors by reducing his profit margin. What's profit margin? Go here: http://en.wikipedia.org/wiki/Profit_margin. Anyway, by 1962 Sam had opened eleven more stores then, inspired by other discount retailers, opened his first Wal-Mart. By 1967, Sam had 24 stores across Arkansas and reached $12.6 million in sales and by 1968 opened it's first stores outside of Arkansas in Missouri and Oklahoma.

To recap, Sam in 1944 owned a Ben Franklin and 23 years later was generating $12.6 million in sales.

By 1975 Walmart (having now been traded and rechristened without the dash) was now in 9 states with 125 stores, 7,500 associates and was now generating $340.3 million. In 8 years. In 1977, Walmart made it's first corporate acquisition in Mohr Value stores and Hutcheson Shoe company. 1978, Walmart adds a pharmacy, auto servicing and jewelry departments.

By 1979, Walmart had 276 stores, 21,000 associates and had reached $1.248 BILLION in sales. In five years Walmart had reached the "B" word. For reference the national debt of the US in 1979 was $640.3 billion. I know, it's $600 billion more than Walmart BUT THEY'RE BOTH IN BILLIONS!

By 1985 there were 882 stores, 104,000 associates and was now generating $8.4 billion in revenue. Now is where we get into the nitty gritty. 1988, Sam stepped down as Chief Executive and the Walmart Supercenter was opened in Washington MIssouri which now included everything you'd come to expect from good old-fashioned Walmart PLUS a tire and oil change shop, optical center, one-hour photo processing lab, portrait studio and, depending on the store, banks, cellular telephone stores, hair and nail salons, video rental and various fast food outlets.


And they increased their produce!

Let's skip ahead in history where Walmart enters more states and quadruples it's revenue to $32 billion to March 17th, 1992 when President Bush SR presents Sam Walton with the Presidential Medal of Freedom the highest civilian medal of honor for civilians who have made "an especially meritorious contribution to the security or national interests of the United States, world peace, cultural or other significant public or private endeavors". April 5th, 1992, Sam Walton dies of future irony. Or old age. Whatever, in 1992 he's dead with a medal for being awesome in business or something.


America... eatin' my lunch from a single bowl...

Let's skip ahead again to 2005 (because even I'm getting bored) had a whopping $312.4 BILLION IN SALES. That's now HALF the national debt from 1979 (but not even touching the current national debt thanks to Bush's retarded son FUTURE IRONY).

So what's the point of this long-winded history of Walmart? That it didn't pop up overnight. It was continuous consumers that built the corporation to the force it is today. And I know what you vegan, in home chefs, composting, fighting the corporation, hipster, urbanites and general AWARES will say... "That's why I don't shop at Walmart". The second point of that long winded history is Walmart is successful not because we're all idiots who can resist the fluorescent charms of the over AC'd warehouse.

Walmart DOES offer the lowest prices. It's what sent the business rocketing to Presidential Medal glory.

Imagine you need film and you're a college student who didn't have school paid for by their parents and does have to work to make rent. Imagine you need film. There's a cute shop down the street where the film is $20 a roll and Walmart in town where it's $10 a roll. Really put yourself in this scene. All you've eaten this week is Ramen. You've had to work a double and you have to midterms and a project due the next morning. You just need two photos but you're out of film and on you're last $20 for the week. And it's Tuesday. Where are you going?

If you say the cute shop you're a fucking liar, you're going to Walmart and you're lying to your friends about it you ASSHOLE.

Walmart is not the disease. It's the symptom. Walmart sprang up as money for families was dwindling. Remember how I kept bringing up the national debt? Check this out: http://www.wisegeek.com/what-is-the-debt-of-the-united-states.htm
That's a site chronicling our national debt and there are a few jumps that coincide with Walmarts business success.

Simply, we're getting poorer even if we don't notice it and Walmart has deep enough roots to survive even if it does take a hit in revenue. It's always there with low prices as the "I'm fucked" option. With a national debt like that, you can't really blame people for going for the cheaper option.

And besides that, while Walmart is awful to it's employees there is something good it does. Walmart is the highest employer of the disabled and elderly in the United States. Now, that's a little inflated seeing as Walmart is the biggest corporation in the US of course it would have the highest numbers of really anything. But still, 80 years old? Run the register! Paralyzed in Vietnam? You can be a greeter! Lost half your face to leprosy? You can stock between the hours of 12am and 8! Many other businesses would consider these people to be a liability whether it's fair or not. But Walmart, having the money it does, doesn't know the meaning of the word "liability". It died with Sam Walton. And, well, in this case that's great! The handicapped and elderly need and want jobs too.


Part 1 at the end starts my point.


Oh Henry Rollins

So, yes, Walmart is terrible in it's current form. But it started as a good idea and has become a symptom of the economic disease in our country. While offering what struggling people need it destroys entire small communities and abuses it employees. But if someone has a better idea or a way for even the poorest mother on Welfare to support herself I suggest get on it or shut the fuck up.

2 comments:

  1. Librarian says: You should really read the Walmart Effect.

    It is an excellent collection of facts chronicling the history and functioning of Walmart- AND it doesn't do it from a completely biased point of view. In fact, the author seems to be a bit pro-Sam Walton and is very sad that he died because the people running the show now don't realize they're heading for an economic point of no return.

    I agree with some of your points, but at the same time I'd like to point out that as many broke people with no other option as there are, there are also plenty of people who use food stamps to buy cigarettes. I think the national debt certainly doesn't help things- but what hurts people more directly is personal debt and financial mismanagement. Running up their credit card for a 2 gallon jug of pickles at Walmart because "Wow what a deal!" The pickles will end up going bad before you can possibly eat them all (unless you're the Pickle Queen of the Trailer Park), but you just paid Walmart a 'low' price for something you didn't actually get the full value of. You could have spent slightly less money on a regular jar of pickles, which- yes, costs more per pickle, but then you would have gotten to eat ALL THE PICKLES without THINGS floating in the pickle water by the end. This is the sort of "get it cheap now!" philosophy which Walmart promotes because they make just a few pennies cum billions profit, and ends up promoting (not just being indicative of) wastefulness, over-indulgence, and a 'something for nothing, or almost nothing' sort of attitude. I on my high horse am frustrated by this, because I think that people have lost sight of the virtue of paying a fair price for services rendered. Walmart promotes this sleight of hand because they make money off it, not to mention how the economic environment on a local scale changes when they move in- debilitating and feeding off of their own employees who end up shopping there as well.

    Ok ok ok, reign it back in Joanna. I dunno, I don't see Walmart's low prices as a virtue for the poor because I feel like it distracts many from actually practicing appropriate spending methods. No, you shouldn't buy your squalling child that toy at the register even if it is only $1.49 and that's almost nothing. Because those $1.49s add up to a meal you could have fed your children in a few days, but it never feels like it. Maybe I'm too Spartan... who knows.

    By the way, that picture of Richard Simmons makes me want to eat at McDonalds.

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  2. That Richard Simmons photo came up when I searched Walmart images. I'm not kidding and I have no idea why.

    And I totally agree with you. This was a really hard post to write and I did hope that by going into the history I would find some points I'd never thought of before since, as we know, the purpose of this blog is to force myself to argue from the other side. Christianity and Family Guy came naturally, Avatar and Walmart were really... really... really hard.

    I think if I learned anything it's what you pointed out and what my dad said. One day, my dad and I were in Walmart standing in a mile long line behind the only open register. My dad turns to me and says "In Sam Walton's day, he'd open an extra register to save the customer this much aggravation" My dad knew who Sam Walton was. I don't why either.

    Sam Walton did seem to have the combined idea of increased sales while offering lower prices. Now it's about increasing sales.

    Ugh. Hard subject.

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