
A birthday
gift from a friend who found me too quick to criticize the world’s largest
retailer, Charles Fishman’s The Wal-Mart Effect details how the company changed
shopping and business in America, then around the world, for better and for
worse. Fishman gives the last word to laid off workers at a Peoria-based
sprinkler supplier, victims of the ubiquitous, company crippling “price
rollbacks” which put Sam Walton’s modest dream around the globe and dozens of
competitors into bankruptcy. These disheartened souls see how the world works;
they miss their old jobs, and now refuse to shop at Wal-Mart, spending the few
extra bucks they’re not sure they can afford so they won’t push other workers
toward similar fates.
Unless
you’ve been living on Mars the last couple of decades, you know Wal-Mart’s
emphasis on bigger and cheaper at the expense of all else is hugely popular
with constituencies both exurban and rural and, more recently, urban and
suburban. The company throws its political might around to get its way—here in
Chicago, the contentious “Big Box Ordinance” fight was more about what neighborhoods
mean than about building a store on the West Side.
Blaming the
behemoth is easy, far too easy. We voted with our pocketbook. Turns out we like
low prices and convenience more than a total retail experience or long-term
solutions. In the early years, Walton’s model was more efficient, his style
admirably frugal, and his stores more down home and friendly. Hard to believe,
yes, but T.G.I. Friday’s and Bennigans were actually novel once and had to be
doing something right to get diluted into its current diluted, semi-bankrupt form.
Behind the
sinister smile and the Arkansas hospitality, the Wal-Mart company devised a
slew of cost-cutting measures, from the tacky yet harmless practice of
displaying merchandise directly on their shipping palettes to the morally
questionable pattern of strong arming suppliers into cutting costs by any means
possible to meet Wal-Mart’s targets, even if it means sudden death. And quite
often, it did. Fishman follows the inventor of the “Makin’ Bacon” microwaveable
dish as Wal-Mart’s vast network sells his product at the most razor thin
margin, prompting him to crank out a very particular product quickly and at a
much lower profit. Buying the appliance for $6.97 at Wal-Mart puts a few cents
in his pocket and a few more cents in the corporation’s coffers. Paying $10 for
online or mail-order puts extra profit directly into the inventor’s pocket. The
story, which Fishman so deftly sketches, makes us think twice about every
purchasing decision and how someone somewhere’s always paying, sometimes quite
dearly, for our “free lunch.”