How is it Affecting You?

How is it Affecting You? • It’s Everywhere • Clueless Consumers • Growing Larger • Expanding Worldwide

History/Background • Sam Walton • Walton’s 5 and 10 - Bentonville • First Wal-Mart Opened in Rodgers, Arkansas • Revolutionary NewRetailing Ideas • Advertising • Cut Costs

Growth Small, Poor Towns First 1974

Growth Small, Poor Towns First 2004

Please view the movie athttp://www.econ.umn.edu/%7Eholmes/papers/Wal1962-2004_nov_05.wmvto see the new store openingsmapped by year

Issues Economy Environment Employees

Pros • Low Paid Workers • Eliminates Competition • Outsourcing • Forgotten Towns

Cons • No Overcharging • Direct from the Factory

Pros • Energy Costs • Current Efforts are PR

Cons • Energy Efficient Stores • Educating Customers

Pros • Pays Less than Others • Poor Compensation • Health Insurance

Cons • Jobs for Unemployed • Purchasing Power

Solutions • Compromise Corporate Gains • Split into Multiple Entities • Attack ActivistsOne Issue at a Time

What do I Say?

Conclusion • There are some serious problems with the way the retail world works, mostly in the economics of it, and I often found dealing with sources that support Wal-Mart quite difficult, because I knew that they were just glossing over the issue, whether they understood what was happening under the surface.

Thesis • To counteract the problems that arise from current consumer spending habits and the prices they necessitate, a combination of effort from the corporate and customer levels is required. Shoppers need to think about the consequences that their actions have on themselves and their towns, while employers need to do their part to reduce the consequences they bring as much as possible.

How is it Affecting You?