Welcome to the 57th installment of The Wal-Mart Weekly, a column dedicated to bringing you insight, wit, facts, results, opinions, and just a bit of everything else when it comes down to a very hot topic these days: Wal-Mart.
This week's Wal-Mart Weekly looks at the lighter, good-natured side of Wal-Mart Stores Inc. (NYSE: WMT). Isn't that refreshing? All too often, the world's largest retailer is bashed up one side and down the other for its actions. There are things, though, that the retailer should be lauded on to balance the consistent negativity it generally receives from standard media channels.
Remember -- although some commenters/readers just don't get it -- the purpose of this column is to give Wal-Mart a fair shake. I call them as I see them from a consumer's standpoint, not from an agenda standpoint. So with that, let's talk about some good that muscles its way out from all the bad when it comes to Wal-Mart.
Why we love conflict in an instant gratification world
Not a day goes by that Wal-Mart is not raked over the coals by critics, consumer groups, or big media. For a litany of reasons, everything from the importation of Chinese goods to causing the demise of small retailers, the world's largest retailer is a target. It's pretty well known that being the largest in a particular industry comes with a price: the largest bull's-eye on the back of your name and brand. Nowhere is this more true than in Wal-Mart.
We love to live in a world of black and white -- but reality is not shaped that way. Everything -- and I mean everything -- is gray. There are no absolutes in daily life (well, outside of physics, right), yet critics love to take an angle and run with it. Conflict sells, and a balanced look at any entity is not something I regularly witness from most critics. Why doesn't "good" sell?
Any media psychologist will tell you that "good" is generally boring to the instant-gratification individual, which I would posit makes up the majority of the U.S. population. We all want it all, and right now. Do you think this is a reason for such a complete nightmare in the U.S. housing industry right now? In addition to liking everything right now, we also love tension. When the entire world is just perfect and peachy keen, misery does not love company. When there is conflict in the world, we as consumers stay glued to the internet, television, newspapers, and radio to get our fix.
The good that Wal-Mart is capable of
When Hurricane Katrina came to town in New Orleans several years ago, Wal-Mart and other retailers were some of the first to get needed emergency supplies out to the affected public as fast as possible -- even before the federal government. Steven Horwitz, who performed an exhaustive study on the response to Hurricane Katrina itself, noted "nearly unanimous agreement by local officials that Wal-Mart's response was crucial in preventing the crisis from being even worse than it was."
Wow -- Wal-Mart's response was found to be crucial for keeping the situation from becoming even worse? Wal-Mart delivered almost 2,500 truckloads of supplies (like bottled water and prescription drugs) to the New Orleans area affected by Katrina. Home Depot, Inc. (NYSE: HD) contributed 800 truckloads of supplies as well. Yet, the recognition when these retailers did good was not nearly as striking or promoted as everything they do that the media perceives as bad. Why is this? In case you didn't get it the first time -- conflict sells. Doing good is not going to rack up those all-important ratings, viewership, page views, or readership points.
Empowerment is what customers recognize
In many instances, retail store managers didn't waste time waiting for a red-tape answer to supplying those directly affected by Katrina from corporate headquarters. This is a good thing: empowerment by local officials in a crisis should be expected. Time is of the essence, in other words. Local management is who customers interact with -- not corporate management. Empower the local employee to make moves that work for the customer when the need arises and you're doing one of the best things you can do for being shown in a positive light then the time comes.
And then, there are other signs retailers are doing good, such as allowing customers to negotiate prices on retail items with a sales clerk. Have you ever walked into a Wal-Mart or Home Depot location, located a moderately expensive item, and asked a sales clerk or checkout person for a lower price? Do you think you can get it?
Never hurts to try -- and with the dryness in retail at the moment due to consumer spending cutbacks, you would probably have good luck at least a few times if you were to ask for a lower price on something compared to its shelf sticker. Is this something retailers want known? Of course not -- but do they receive recognition for it? I don't think they would want that, or every customer would try negotiating. Even pricing can sway away from the black and white and into the gray. One has to wonder if the promotion of "pricing negotiation" would actually become a marketing tactic to get more customers buying in certain retail stores (more traffic and more incremental ticket, in industry terms).
A company's response to a local emergency situation and the flexibility of its employees to take lower prices (or risk losing a sale) are two areas that should be lauded. Yet, they appear as situations then go away quietly, while constant negativity rules the day and keeps the consuming public entertained and angry. That doesn't mean good acts by Wal-Mart -- or any other retailer -- should not be recognized for what they are, right? Sound off below in comments and let me know what you think.
Stay tuned right here this time next week for another edition of The Wal-Mart Weekly. Until then, have a safe week!











Reader Comments (Page 1 of 1)
4-20-2008 @ 4:31PM
Michael Schneider said...
Wal-Mart is a great example of a company that went from admired to something like "socially irresponsible" (see item on socially responsible investing in the free Barrel Report- right side, top- at http://www.Barrelomoney.com. Most industries in the US have gotten a lot of consumer criticism- tobaccos, drugs, autos, food, beverage, gaming, oil, mining, even media companies. Wal-Mart could be a good investment near term though. Perhaps some of the bashing has kept investors away from the stock.
4-21-2008 @ 12:50AM
rowdy said...
Bryan, Always remember that the majority of us feel that you are fair and balanced in your opinions about Wal-Mart. I hope some of the "BIG WIGS" read your report or have it sent to them. It could be an eye opener for WMT upper management since they have started living in glass houses. POINT'S TO PONDER?
RoudMan