The Walmart Effect
www.theatlantic.com
New research suggests that the company makes the communities it operates in poorer—even taking into account its famous low prices.

Summary

Two studies reveal that Walmart’s entry into communities lowers household incomes by 6% over 10 years and increases poverty by 8%, even when accounting for cost savings.

Its practices, such as undercutting competitors, suppressing wages, and squeezing suppliers, harm local economies by reducing employment and forcing smaller businesses to close.

Walmart’s “monopsony power” enables it to pay lower wages and dominate suppliers, compounding these effects.

The findings challenge the idea that low prices alone benefit communities, emphasizing long-term economic harm.

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Non-paywall link

  • Duamerthrax@lemmy.world
    18·
    12 days ago

    Snapper Mowers actually pulled from Walmart in 2006 because they wanted to focus high quality products rather then moving quantity.

    Selling Snapper lawn mowers at Wal-Mart wasn’t just incompatible with Snapper’s future – Wier thought it was hazardous to Snapper’s health. Snapper is known in the outdoor-equipment business not for huge volume but for quality, reliability, durability. A well-maintained Snapper lawn mower will last decades; many customers buy the mowers as adults because their fathers used them when they were kids. But Snapper lawn mowers are not cheap, any more than a Viking range is cheap. The value isn’t in the price, it’s in the performance and the longevity.

    Later in 2013, Briggs & Stratton decided to start selling Snapper in Walmarts again. 2014, Briggs & Stratton closed a Snapper plant. They then had to restructure and other corporate BS, so fuck around and find out. Publicly traded company garbage.