One Nation under Wal-Mart
Case Study 1.2
Rosalyn Rivera
MGMT 5253
October 11, 2014
Professor Matthew Wallace
One Nation under Wal-Mart
1. Facts
Wal-Mart is now the world largest company.
There are more than 8,400 Wal-Mart stores worldwide.
140 million shoppers visit the U.S. stores each week.
82% of American households purchase at least one item from Wal-Mart every year.
Wal-Mart controls about 30% of the market in household staples.
Sells 15% of all magazines and 15%-20% of all CDs, videos and DVDs.
It is expected to control over 35% of U.S. food sales.
When comparing other companies that sell consumer products, Wal-Mart represents a big chunk of their total business: 20% for Dial, 24% for Del Monte, and 23% for Revlon.
Wal-Mart is responsible for 10% of all goods imported to the United States from China.
Wal-Mart offers the lowest prices in all of their products, because of the cost efficiency it has achieved.
Wal-Mart’s buying power and cost-saving efficiencies force local rivals out of business, thus costing jobs, disrupting communities, and injuring established business districts.
Within 5 years after one Wal-Mart opening, two local supermarkets close.
Because of Wal-Mart tax breaks, it causes the local tax revenue to decrease and not increase.
Wal-Mart is staunchly anti-union and pays low wages.
Its labor cost are 20% lower than those of unionized supermarkets; its clerks earns only $8.23 an hour, and most of its 1.4 million employees must survive without company health insurance.
Employee turnover is 44%.
Because of its size, it exerts a downward pressure on retail wages and benefits throughout the country.
Because of its hard line on costs, it has forced many factories to move overseas, which sacrifices American jobs and holds wages down.
Government welfare programs subsidize Wal-Mart’s poverty-level wages.
200 employee store costs the government $42k a year in housing assistance, $108k in children’s healthcare, and $125k in tax credits and deductions for low-income
Rosalyn Rivera
MGMT 5253
October 11, 2014
Professor Matthew Wallace
One Nation under Wal-Mart
1. Facts
Wal-Mart is now the world largest company.
There are more than 8,400 Wal-Mart stores worldwide.
140 million shoppers visit the U.S. stores each week.
82% of American households purchase at least one item from Wal-Mart every year.
Wal-Mart controls about 30% of the market in household staples.
Sells 15% of all magazines and 15%-20% of all CDs, videos and DVDs.
It is expected to control over 35% of U.S. food sales.
When comparing other companies that sell consumer products, Wal-Mart represents a big chunk of their total business: 20% for Dial, 24% for Del Monte, and 23% for Revlon.
Wal-Mart is responsible for 10% of all goods imported to the United States from China.
Wal-Mart offers the lowest prices in all of their products, because of the cost efficiency it has achieved.
Wal-Mart’s buying power and cost-saving efficiencies force local rivals out of business, thus costing jobs, disrupting communities, and injuring established business districts.
Within 5 years after one Wal-Mart opening, two local supermarkets close.
Because of Wal-Mart tax breaks, it causes the local tax revenue to decrease and not increase.
Wal-Mart is staunchly anti-union and pays low wages.
Its labor cost are 20% lower than those of unionized supermarkets; its clerks earns only $8.23 an hour, and most of its 1.4 million employees must survive without company health insurance.
Employee turnover is 44%.
Because of its size, it exerts a downward pressure on retail wages and benefits throughout the country.
Because of its hard line on costs, it has forced many factories to move overseas, which sacrifices American jobs and holds wages down.
Government welfare programs subsidize Wal-Mart’s poverty-level wages.
200 employee store costs the government $42k a year in housing assistance, $108k in children’s healthcare, and $125k in tax credits and deductions for low-income