Many of us choose not to shop at Walmart. We’ve heard that the superstore is often not beneficial for communities. But why is that? What exactly is it about Walmart that makes it a less-than-ideal choice? Here are a few things to keep in mind.
1. Money leaves the community
When large chain stores like Walmart open up, they actually take money away from the community. Money made at Walmart stores profit a corporation based in a distant city, whereas money made at locally owned stores goes to local residents. It’s true that large chain stores may provide jobs, but they often cause communities to lose jobs, as well.
Chain stores can put small, local stores out of business. As Bloomberg reports, Walmart has led to the closure of local businesses in communities in Kansas and Texas, for example.
2. Less product variety
Because Walmart has the resources to dominate local markets, local business are often unable to survive. That means that in many communities, particularly rural ones, Walmart may be the only nearby shopping option. Many fear this lack of competition may mean that once local businesses have shut their doors, Walmart will jack up their prices. As Forbes explains, it doesn’t really work that way, though, because doing so would create an opening for the competition to return.
So while we may not have to worry about Walmart gouging us anytime soon, there is anecdotal evidence to suggest that, when there’s only one option in town, shoppers may have less product variety to choose from than they would if they had multiple businesses to shop at.
3. Impact on food supply
Walmart employee Dayngel Fernandez works in the produce department stocking shelves at a Walmart. (Photo Courtesy: Joe Raedle/Getty Images)
In 2010, Walmart pledged to increase its sales of local produce from four to nine percent. And indeed, the amount of local produce sold at Walmart has risen. But is this really benefitting local communities? NPR reports that this is questionable. There are challenges for local producers when it comes to factors like supply. Walmart expects a steady supply of produce nearly year-round, which is difficult for some local producers. In fact, there is a range of logistical questions that, according to NPR, might mean that Walmart is benefitting more than local communities.
4. Local character
As large box stores dominate more and more of our retail, communities across the country begin to look the same. If you’ve ever gone on a cross-country road trip, it may have seemed to you like town after town had the same assortment of superstores and fast food chains, with a smattering of regional variations and local businesses here and there. This is a shame; it means that our cities and towns are losing a significant part of what makes them unique and interesting.
5. Foreign labor, including child workers
It’s estimated that about 50 percent of Walmart’s goods are manufactured overseas. And people who make those items may be working in dangerous facilities, or being terribly underpaid. One example is Bangladesh. In 2015, the minimum wage for industry workers was $37 per month and conditions were routinely unsafe.
6. It’s bad for women
Walmart employee Darlin Cienfuegos rings up customer purchases at a Walmart. (Photo Courtesy: Joe Raedle/Getty Images)
In 2013, Walmart was shown to pay approximately $1.16 less per hour to its female employees than its male employees, despite the fact that women made up the majority of its workforce. And a number of lawsuits have been filed against Walmart on behalf of women who have been put in unsafe situations or fired while pregnant.
For example, in 2012, Walmart faced gender discrimination claims filed with the Equal Employment Opportunity Commission by nearly 2,000 current and former employees. And more recently, former employee Rebecca Wolfinger filed a suit against Walmart for being fired after being told to “choose between her career and her kids.”
7. You’re at Walmart’s mercy
When a new Walmart opens it often results in local businesses going under. So what happens if Walmart later decides to close its doors? You may be out of luck, as it might be more difficult to find the basic goods and supplies you’re used to purchasing. Of course, you can buy some items online, but you’ll have to pay and wait for shipping. This is exactly what happened in one North Carolina community, as Time reports.
Also, the employees of the Walmart that closes will suddenly be out of work. It will be more difficult for them to find new jobs, since local stores have gone out of business. That said, the benefit of a Walmart closure is that local business may be able to make a comeback. But for a period, it will be difficult for many residents.
8. Poorly run stores
If nothing else, it’s often an unpleasant experience to shop at a Walmart. Though the evidence here is more anecdotal, many complain that the stores are understaffed and simply not managed in an effective manner, making it a poor experience for both employees and shoppers. For more on Walmart’s customer dissatisfaction, take a look at some of the top customer complaints posted on the website of Consumer Affairs.
In many areas, Walmart may be the only option when it comes to purchasing many necessities. And there are many who simply cannot afford to shop at other stores, where prices may be higher. In those cases, you can’t fault customers for shopping there.
Still, it is important to recognize the negative impact that Walmart has on these communities. And for those of us who do have choices, it is much better to support local businesses than to shop at Walmart. Yes, their price are low, but at what cost? If you have access to other alternatives and the financial means to shop elsewhere, cutting down on money spent at Walmart will have a wide range of global benefits.
