PBS just did a special the other night on whether or not Wal-mart was good for America. It was fairly controversial. Manufactures used to have a lot of clout for setting the price on the goods they produce, but now retailers like Wal-mart have the most clout by forcing manufactures to drop their price or "we will take our business elsewhere" - i.e., overseas. Wal-mart even wanted one supplier to drop their unit price to .01! That explains why there are many people in China who work in factories for only .25/hr.
WTH -- I saw that. ....ed me off big time, and those at the house I work at saw it also, and the general consensus is that we will no longer shop there.
Well, from what I can tell Sears peaked out in about 1950 and K-mart just a few years after that.
Just go into a Sears and look around. It's like going into a time machine - it's still 1950 in there. They still have the great-big-store-in-the-Mall kinda concept. Still have the cheezy "Kenmore" appliances and power tools (actually custom labeled by Black and Decker and GE and some no-name manufacturers), and still have all the same features they've had since Hoagey was a pup. The tool department (sorry Socks, I think they're crap), the auto repair, the clothes (tres chic), and the appliance department.
They did a little to stave off bankruptcy. The "Sears Brand Central" idea and the "Discover" card helped keep them on the map, but it seems they still have a bunch of dinosaurs figuring out their business plan. They've been in steady decline overall for decades.
And K-mart, gaaaawd they're just awful. I remember several years ago going into one just to get a battery for my watch or something or other. I looked around the place and thought, "If they were giving all of this stuff away for free, I still wouldn't want any of it". It was all just so much crap. Buy it, take it outside, and throw it right in the dumpster, and save the trip home.
IMHO, they need to do a serious rethinking and retooling of their whole operation from the ground up and make some drastic changes. But, as it seems they still have the same goons in charge, I don't see it happening.
It's going to be a long, painful death by degrees.
PBS just did a special the other night on whether or not Wal-mart was good for America. It was fairly controversial. Manufactures used to have a lot of clout for setting the price on the goods they produce, but now retailers like Wal-mart have the most clout by forcing manufactures to drop their price or "we will take our business elsewhere" - i.e., overseas. Wal-mart even wanted one supplier to drop their unit price to .01! That explains why there are many people in China who work in factories for only .25/hr.
And its curious that Wal-Mart used to be cited as an example in a lot of management books as an example of how you should leverage your power over suppliers. Now, of course, it is far too politically incorrect. But, still, they are trying to get the cheapest price possible for the stuff they sell over here. I don't know what company that would do otherwise. Because they are so big, they are able to leverage that market share to force their suppliers to produce the parts they want. Nobody is going to force a company to add or subtract features from their product; nobody is going to force them to sell their product for $___ per unit. But, if they want to sell to this one company, they will. Otherwise, they can peddle their wares elsewhere.
BTW, what explains why there are people working in China for .25/hr is that there are more people than jobs. Employers do not have to pay them more than that, because there are people waiting in line to get those good jobs when a person decides that .25/hr is not good enough. But, the situation with Wal-Mart is that when China becomes too expensive, they will engage factories in Bangladesh. When Bangladesh becomes too expensive, they'll start up factories in Tanzania.
Re a new name for the merged company, does anyone remember the "Evil Dead" series of films ? Bruce Campbell's character worked in a store called "S-mart". The store's pitch line was "Shop smart, shop s-mart." Maybe Sears could buy the rights to that name.
I assume you have all seen the reports about how Sears is treating its reservist employees who are called up? By law, they are required to hold their jobs open and available, but nothing more. Usually, people take a big pay cut and lose benefits as a result of being called up...Sears is voluntarily paying the difference in salaries and maintaining all benefits, including medical insurance and bonus programs, for all called up reservist employees for up to two years. I submit that Sears is an exemplary corporate citizen and should be recognized for its contribution.
Suggest we all shop at Sears, and be sure to find a manager to tell them why we are there so the company gets the positive reinforcement it well deserves.
So I decided to check it out I sent the following email to the Sears Customer Service Department: "I received this email and I would like to know if it is true. If it is, the Internet may have just become one very good source of advertisement for your store. I know I would go out of my way to buy products from Sears instead of another store for a like item even if it was cheaper at the other store. "
Here is their answer to my email: "
Dear Customer:
Thank you for contacting Sears.
The information is factual. We appreciate your positive feedback. Sears regards service to our country as one of greatest sacrifices our young men and women can make. We are happy to do our part to lessen the burden they bear at this time.
Kit --- I have only three credit cards for individual stores, and Sears is one of them. Thank you for posting what you did. I will make it a point to go there (vs. the other two stores) for things that I can use, but don't really need. :)-->
Geo makes a good point about Sears needing to use some innovation in their offerings. People don't buy new appliances every year.
The only way to fight Walmart is not to shop there. We have laws that are not enforced about underpricing. In Germany Walmart started a price war and along with a few other stores ended up getting cited for breaking their laws about underpricing certain products.
In my macroeconomics class we just got done with a chapter on pricing. Very interesting!
Wal Mart is a beaurocratic bully. They manipulate, intimidate and negotiate to the point that most companies who do business with them hardly realize any profit after the negotiations are done.
They have started requiring their vendors to move their production overseas to reduce overhead costs, so that they can afford to sell their products through Wal-Mart. -->
I used to work for a company who did major business with them, but once I did a cost analysis we realized that, although we were brining in millions upon millions of dollars from them, it was costing us 1/3 as much just to service and maintain their business. We weren't making millions on them, we were losing millions.
I despise what Wal Mart has done to the small businesses and wish more people would quit shopping there. If you look at the prices, they really aren't that great anymore. It's a classic example of telling the people a lie often enough that they will end up believing it.
Thank-you Belle for posting your experience in the business world regarding Wal-Mart. I don't shop there. Once I found out about their business practices, that was enough to send me running. They are close to where I live and have a variety of goods, however, I'm lucky enough that I can find what we need else where. I think shopping there is being penny smart and pound foolish. Yes, you save a little money, however, you add to the profit line of a big bully who advertises how caring they are. I love it when they are in the news for litigation and they advertise right up next to it!
We have a group of gramma's who picket our local walmart.
lol . they have a mission to tell people as well.
but I understand why people work and shop at Walmart they open in areas that need jobs , the wages may be substandard and the
company crooked but people need to eat and save money to live.
I do understand what saving 5 dollars means to a family who is struggling in these times of decreasing manufacturing jobs and lack of fair education for everyone.
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CoolWaters
What I meant to say, I said not. And what I said not, I didn't mean to say.
But the little green alien that runs around here certainly knows it all.
PS You have to leave a cookie trail to find one. Tee hee.
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excathedra
i confused but i wuv ya
ps. i'm only talking about this one store
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What The Hay
PBS just did a special the other night on whether or not Wal-mart was good for America. It was fairly controversial. Manufactures used to have a lot of clout for setting the price on the goods they produce, but now retailers like Wal-mart have the most clout by forcing manufactures to drop their price or "we will take our business elsewhere" - i.e., overseas. Wal-mart even wanted one supplier to drop their unit price to .01! That explains why there are many people in China who work in factories for only .25/hr.
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dmiller
WTH -- I saw that. ....ed me off big time, and those at the house I work at saw it also, and the general consensus is that we will no longer shop there.
That there is extortion.
:(-->
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George Aar
Well, from what I can tell Sears peaked out in about 1950 and K-mart just a few years after that.
Just go into a Sears and look around. It's like going into a time machine - it's still 1950 in there. They still have the great-big-store-in-the-Mall kinda concept. Still have the cheezy "Kenmore" appliances and power tools (actually custom labeled by Black and Decker and GE and some no-name manufacturers), and still have all the same features they've had since Hoagey was a pup. The tool department (sorry Socks, I think they're crap), the auto repair, the clothes (tres chic), and the appliance department.
They did a little to stave off bankruptcy. The "Sears Brand Central" idea and the "Discover" card helped keep them on the map, but it seems they still have a bunch of dinosaurs figuring out their business plan. They've been in steady decline overall for decades.
And K-mart, gaaaawd they're just awful. I remember several years ago going into one just to get a battery for my watch or something or other. I looked around the place and thought, "If they were giving all of this stuff away for free, I still wouldn't want any of it". It was all just so much crap. Buy it, take it outside, and throw it right in the dumpster, and save the trip home.
IMHO, they need to do a serious rethinking and retooling of their whole operation from the ground up and make some drastic changes. But, as it seems they still have the same goons in charge, I don't see it happening.
It's going to be a long, painful death by degrees.
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markomalley
And its curious that Wal-Mart used to be cited as an example in a lot of management books as an example of how you should leverage your power over suppliers. Now, of course, it is far too politically incorrect. But, still, they are trying to get the cheapest price possible for the stuff they sell over here. I don't know what company that would do otherwise. Because they are so big, they are able to leverage that market share to force their suppliers to produce the parts they want. Nobody is going to force a company to add or subtract features from their product; nobody is going to force them to sell their product for $___ per unit. But, if they want to sell to this one company, they will. Otherwise, they can peddle their wares elsewhere.
BTW, what explains why there are people working in China for .25/hr is that there are more people than jobs. Employers do not have to pay them more than that, because there are people waiting in line to get those good jobs when a person decides that .25/hr is not good enough. But, the situation with Wal-Mart is that when China becomes too expensive, they will engage factories in Bangladesh. When Bangladesh becomes too expensive, they'll start up factories in Tanzania.
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TOMMYZ
Re a new name for the merged company, does anyone remember the "Evil Dead" series of films ? Bruce Campbell's character worked in a store called "S-mart". The store's pitch line was "Shop smart, shop s-mart." Maybe Sears could buy the rights to that name.
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Kit Sober
Received in email today:
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dmiller
Kit --- I have only three credit cards for individual stores, and Sears is one of them. Thank you for posting what you did. I will make it a point to go there (vs. the other two stores) for things that I can use, but don't really need.
:)-->
---and I'll let them know why I am there.
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reikilady
Geo makes a good point about Sears needing to use some innovation in their offerings. People don't buy new appliances every year.
The only way to fight Walmart is not to shop there. We have laws that are not enforced about underpricing. In Germany Walmart started a price war and along with a few other stores ended up getting cited for breaking their laws about underpricing certain products.
In my macroeconomics class we just got done with a chapter on pricing. Very interesting!
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Belle
Wal Mart is a beaurocratic bully. They manipulate, intimidate and negotiate to the point that most companies who do business with them hardly realize any profit after the negotiations are done.
They have started requiring their vendors to move their production overseas to reduce overhead costs, so that they can afford to sell their products through Wal-Mart.
--> 
I used to work for a company who did major business with them, but once I did a cost analysis we realized that, although we were brining in millions upon millions of dollars from them, it was costing us 1/3 as much just to service and maintain their business. We weren't making millions on them, we were losing millions.
I despise what Wal Mart has done to the small businesses and wish more people would quit shopping there. If you look at the prices, they really aren't that great anymore. It's a classic example of telling the people a lie often enough that they will end up believing it.
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reikilady
Thank-you Belle for posting your experience in the business world regarding Wal-Mart. I don't shop there. Once I found out about their business practices, that was enough to send me running. They are close to where I live and have a variety of goods, however, I'm lucky enough that I can find what we need else where. I think shopping there is being penny smart and pound foolish. Yes, you save a little money, however, you add to the profit line of a big bully who advertises how caring they are. I love it when they are in the news for litigation and they advertise right up next to it!
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mj412
We have a group of gramma's who picket our local walmart.
lol . they have a mission to tell people as well.
but I understand why people work and shop at Walmart they open in areas that need jobs , the wages may be substandard and the
company crooked but people need to eat and save money to live.
I do understand what saving 5 dollars means to a family who is struggling in these times of decreasing manufacturing jobs and lack of fair education for everyone.
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