During my senior year of high school, my economics teacher told me about Walmart and how it’s a terrible company. I wanted to do some further research on Walmart and see for myself whether Walmart is a ruthless tyrant of the industry or not.
Walmart was originally started in 1962 by a man named Sam Walton. After serving in the military for a brief period and owning a successful shop in Arkansas, Inspired by the early success of his dime store, and driven to bring even greater opportunity and value to his customers, Sam opened the first Walmart in 1962 at the age of 44 in Rogers, Arkansas(“Our History”, Walmart).
While the vision of Sam Walton was most likely one of promise and hope for the industry, It has certainly evolved into something much, much uglier.
Walmart has a long history of not only cutting prices to remove competition, but also cutting prices for businesses as well.
In 2005, a documentary titled “Walmart: The High Cost of Low Price” showed how Walmart operates and how they are impacting small businesses and manufacturers. The idea of price cutting was made illegal during the late 1800’s for businesses such as Standard Oil Company and Carnegie Steel. These Tyrants used price cutting as a method of owning the market. This practice, known as predatory pricing, forced smaller businesses in the same market to go out of business. The idea, essentially, is to lose money on sold products so that when smaller businesses are forced to cut prices as well, they will eventually run themselves into the ground.
Walmart has been doing the same thing for years. The only issue: They’re still doing it, and they just don’t care. In 1993, they were actually tried and found guilty of predatory pricing. An article published in the New York Times stated: In court papers, Wal-Mart has acknowledged selling some products for less than they cost, but insists that the policy has not damaged competition in the Conway area” (Wal-Mart on Trial on ‘Predatory Pricing’ Charges, New York Times).
While walmart has been notorious for predatory pricing tactics, they have also been under blast for Anti-Union policies. These policies include managerial surveillance and closing stores that have threatened to unionize or join other unions.
The idea of Walmart using these tactics to not only save money, but also rule the market they’re in sickens me. Walmart is notorious for having unhappy workers and being an unhappy place in general, and it’s clear to see why.
As I read these articles and watched documentaries, I feel bad not only for the people who lose their jobs, but for those who are forced to work for them. It makes me thankful for what I have and thankful for the opportunity to work for a small grocery store that didn’t have to worry about union disputes and predatory pricing.
Hopefully, next time you drive by a Walmart, you’ll choose to not support these practices and maybe drive a few more blocks to the Target.
Sources:
Greenwald, Robert, director. Walmart: The High Cost of Low Price. Youtube, Jim Gilliam, 2005.
Jones, Kathryn. “Wal-Mart on Trial on ‘Predatory Pricing’ Charges.” The New York Times, The New York Times, 24 Aug. 1993, www.nytimes.com/1993/08/24/business/wal-mart-on-trial-on-predatory-pricing-charges.html.
“Our History.” Corporate, www.corporate.walmart.com/our-story/our-history.
Dylan Mann 