Wal-Mart (NYSE: WMT) has announced that it will pay more for "green" products. The company is making a commitment to sourcing good quality products that will be better for the environment.
Reuters reports "bad quality products create waste, and so having tighter standards on the social side, on the environmental side and on the quality side will reduce waste," Matt Koestler, Wal-Mart's senior vice president of sustainability, said. The company has also been making a drive to use more renewable energy.
Wal-Mart already is feeling the stress of a slowing economy. Its same-store sales were weak last month, especially in the US. That means it is not likely that it will absorb these higher costs for "green" products. Customers are likely to get that privilege.
The news highlights the growing tensions about using "green" products and services, which very often have a higher price. Hybrid cars often cost as much as $5,000 more that their gas-driven counter-parts.
With money tight, especially for low- and middle-class shoppers at Wal-Mart, skipping the "green" would probably be their preference.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
2-09-2008 @ 12:16AM
Brockage said...
This is just the beginning of paying more for the same thing we get now for less - welcome to the wonderful world of greenness, so-called since we'll pay more greenbacks for products that don't work quite as well, but make us feel good -- don't forget to flush twice or three times with your low flow toilet.
2-15-2008 @ 4:43PM
NickP said...
Rather interesting that walmart now admits that they have been selling poor quality goods, not that many of us did not know that already. I also doubt that walmart's typical customers will pay more green for green. This might be good news for Dollar stores.