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This is an update on a column that I wrote in 2005.
Don
“Victoria's Secret. Well their stuff's real
nice.
But I can buy the same damn thing
on a Wal-Mart shelf half price”
-Gretchen Wilson
The line in “Redneck Woman” represents how shopper’s attitudes
have changed. Not long ago, people didn’t
brag about shopping at a discount store.
Now boasting about bargains has
become the national sport.
One of the most insightful
business books ever is John Dicker’s
masterpiece, The United States
of Wal-Mart. Since the time the book was released in 2005,
the winds of change are occurring in the
world of Wal-Mart.
But they are occurring slowly.
Bargains are a way for shoppers to feel good about their
mastery of the supply chain. Dicker traces
the change in attitude to the recession of the early 1990’s.
In a recession where white collar workers fared worse than
others, displaced workers dropped Macy’s and never came back.
The shift in shopping attitude is one of many insights that
Dicker gives us in “The United States of Wal-Mart.”
It is a provocative book based
on history, sociology and Dicker’s edgy writing style.
He wrote, “It’s clear. We’re all
Wal-Mart’s bitches.”
Reading Dicker’s book gives me the thrill that a bargain seeker gets
when finding a great deal. Like buying a pack of underwear for $1.99.
When I bought the book in 2005, I assumed it was one of the many Wal-Mart
bashing books in circulation. Dicker takes
his shots but his conclusions are even-handed.
I’ve developed an email relationship with John and he is a
witty and insightful man.
He explains the sociological and business changes that
allowed Wal-Mart to become the 800 pound gorilla of the retail world.
He points out Wal-Mart’s warts but entwines them in the history
of how Wal-Mart grew from one store to a company that does $288 billion in
sales.
Dicker devotes many pages to Wal-Mart’s alleged exploitation
of foreign labor and allegations of mistreating American employees.
He notes the number of class action lawsuits based on alleged
gender discrimination and alleged violations of wage and hour laws.
He explains why attempts to unionize the company have failed
and that some of the blame goes to the inept efforts of union leaders with six
figure salaries and country club memberships.
There is one way to stop a Wal-Mart from coming into a
community and that is to fight it over zoning issues. Protests over labor practices or its impact on
other businesses have had little success, but zoning battles have kept Wal-Mart
out of some cities.
The prospect of driving down property values or traffic
problems will cause a large cross section of a community to fight Wal-Mart. Nothing else will stop it.
Dicker discussed how the move of Wal-Mart into inner cities
has a positive economic impact on blighted communities. Poor people don’t complain about having a
Wal-Mart nearby when the alternative is to a take bus or cab across town.
The book gives us a lot to think about, especially if you
live in a small town where Wal-Mart is the only place to shop.
Dicker’s book is one of those, like Rachael Carson’s Silent
Spring, that span a reaction and spur action.
The company has come under massive criticism in all the arenas that he
brings up. The book was part of
Wal-Mart’s wakeup call to clean up their act.
There are signs that some people in Bentonville are
listening. John’s thoughts are not just
about Wal-Mart but about American sociology in general.
He ends the book with an ominous insight:
“The ugly truth is that we have become a nation that values
little above a bargain. Customer service, product quality, a connection to
people who make and sell our sacred stuff - it’s all become secondary to
savings.”
Gretchen Wilson and millions like her can brag about finding a Wal-Mart bargain. That bargain has a cost.
Read the book. It is funny, insightful and not on sale in
the Wal-Mart book department.
Don McNay is Chairman of McNay Settlement Group and does
not buy his clothes at Wal-Mart or Victoria’s
Secret. He is the author of the Unbridled World of
Ernie Fletcher. You can write to him at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
or you can read other things he
has written at www.donmcnay.com He is on the Board of Directors for the
National Society of Newspaper Columnists.
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