Walmart:
Downsizing or Supersizing?
Wal-Mart
is planning a statewide takeover of California. As if its
regular sized megastores aren’t big enough, Walmart’s
newest reign of terror are their twice-as-large Supercenters.
The second largest employer in the nation next to the Department
of Defense, Wal-Mart has 1494 regular stores
in the US alone. In addition to this, 1386 of these Supersized
consumption centers exist in 43 states – but none
in California. Yet. Walmart headquarters is planning to
expand its empire into California this year, choosing 40
locations in their expansion plans.
Not
your Neighborhood store...
There
is a popular myth that opening new Wal-Mart stores creates
hundreds of new jobs in the community, but studies have
shown that the megastores wipe out so many small businesses
that on average for every two jobs created by Wal-Mart,
three jobs are lost. In a 1994 report, the Congressional
Research Service warned Congress that communities
need to evaluate the significance of any job gains at big-box
stores against any loss of jobs due to reduced business
at competing retailers. The report also pointed out that
these so-called new jobs "provide significantly lower
wages then jobs in many industries, and are often only
part-time positions, seasonal opportunities, or subject
to extensive turnover."
The
Real Story is that when Wal-Mart moves into the neighborhood,
it devours local businesses and lowers community living
standards. Walmart also contributes to the massive loss
of American manufacturing jobs to the global south, where
Kathy Lee and her cohorts are permitted to operate slave-like
operations in sweatshops free of regulation. Two 1998 studies
that examined clothing on Wal-Mart racks showed that more
than 80% of the the apparel items were made overseas, often
in countries where child labor is prevalent.
One
difficulty that many Americans see Wal-Mart as friendly
folks from Arkansas bringing the community the cheapest
prices in town. But don’t be fooled, this Megaconglomerate
took in $244 billion in revenue in 2003, and recently surpassed
ExxonMobil as the largest and richest corporation in the
world with annual profits of a record $8 billion last year.
Being America’s second largest employer, you’d
think a company with this much surplus could afford to
provide its employees with a living wage, health care,
and job security, but you’d sure be wrong. Where
do the profits go? Into the hands of the Waltons, of course,
the ruling family of the Wal-Mart empire.
Of
the 10 richest people in the world, five are Waltons. S.
Robson Walton is ranked by London’s "Rich List
2001" as the wealthiest human on the planet, having
sacked up more than $65 billion (£45.3 billion) in
personal wealth and topping Bill Gates as No. 1.
Wal-Mart’s
founder Sam Walton wasn’t born into riches, and hundreds
of variations his success story float around the internet
about how he turned a million dollars in debt into 8 billion
dollars in surplus. But while they tell you how he did
it, they never really say how he did it. Walton lived the “Great
American Dream”. He pulled himself up by those stubborn
bootstraps and started selling. Then he learned if you
sell enough you become rich. Destroy your competition and
you become super-rich. Keep your employees underpaid, limit
their schedules to part-time to avoid paying benefits,
get your merchandise made overseas where labor standards
are non-existent, and you become the richest man in America.
Walton
died in 1992, but his empire has lived on, and grown exponentially.
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Other
Fun Wal-Mart facts:
As
America’s biggest retailer, Wal-Mart is also
its biggest gun-seller. Campaigners
for tighter gun-control laws accuse Wal-Mart of marketing
firearms irresponsibly and being too lax in selling
weapons to teenagers. When rock star Sheryl Crow alluded
to this on a recent record, Wal-Mart banned it from
their 2500 stores.
Wal-Mart
owns 30% of the US Consumer market, including 20% of
all music and video sales, 28% of Dial
Soap’s sales and 24% of Del
Monte Foods’ sales.
Wal-Mart
sells 15% of all grocery food in America. (that’s
$50 billion+ in grocery sales annually!)
Wal-Mart
employees earn 20% less than those at unionized supermarkets.
Wal-Mart
is the number one retailer in Canada and Mexico as
well as the US.
Wal-Mart
owns ASDA,
the UK’s largest supermarket chain.
Wal-Mart
has 1,494 stores, 1,386 Supercenters, 532 Sam's Clubs
and 56 Neighborhood Markets in the United States. The
company has 1.1 million employees in the U.S. and about
300,000 overseas.
Wal-Mart's
annual sales in 2003 were $244 billion. It's net profit
was $8 billion.
Wal-Mart's
net income grew 20.5% from 2002 to 2003. |
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