How much does Wal-Mart save its customers?

[Omaha Steve]

http://www.bloggingstocks.com/2008/03/31/how-much-does-wal-mart-save-its-customers/

Posted Mar 31st 2008 4:09PM by Zac Bissonnette
Filed under: Wal-Mart (WMT), Marketing and advertising

In an effort to beef up its image -- which has taken a beating from union activists and the media -- Wal-Mart (NYSE: WMT) has sought to portray itself as a company that has a good effect on the country in a broad way.

To that end, the company has been running ads touting the "fact" that it saves that average American family $2,500 per year.



But the National Advertising Division of the Council of Better Business Bureaus is set to release its finding that the claim is misleading, promoting a statistic "for which the advertiser provided no support and, in fact, conceded that there was none."

Apparently Wal-Mart pulled that claim out of a study it commissioned that found that its stores emphasis on low prices led to a 3% decline in overall prices. But the BBB found that the "implied claim" that consumers who shop at Wal-Mart will save $2,500 more than comparable families in the same area who don't was misleading.

Of course, this isn't the first time that Wal-Mart has used fuzzy math to conjure impressive statistics that can be used to imply things that the data didn't. Earlier this month, I wrote about the company's recent claim that "This month, Wal-Mart Stores, Inc. will open 81 new stores and clubs across the country, providing jobs for 26,000 associates."

Of course that statistic didn't include the jobs that will be lost as volume at other stores declines from the force of competition. There's nothing wrong with that -- that's capitalism. But Wal-Mart's newfound obsession with its image has tossed the corporate spin machine into high gear, and the company appears to be willing to sacrifice the truth for impressive PR. In the long run, that will hurt it's credibility, especially with so many critics all too eager to point out any misleading statements.

[napi21]

1. There are SOME things that are cheaper at WM. I am speaking

strictly of grocery items because with THEM, you can actually compare like products between stores. ie: Campbell's soup with Campbell's soup in other stores. SOME items are 1¢ to 3¢ cheaper than most other stores, but some are NOT! You can save some $$ if you buy WM's generic items like cereal, noodles, and many of their generic canned foods, but compared to generics in other grocery stores, there's very little difference.

The quality of WM's meats is lower than most other supermarkets, and their produce won't last more than 1 or 2 days at the very most before it is unusable.

I saw that ad too, and the assumptions you would have to make to have it be true are way beyond the norm.

My husband works for a competitor supermarket and I went with him when he "shopped" the WM for price & quality comparisons.

It's sure not worth it to ME to do my grocery shopping there, and 90% of the items in the rest of the store are JUNK!

[Omaha Steve]

2. We never shopped at Walmart, we stopped shopping at Sams

Once we became enlightened, we stopped. I still have an anti Walmart sticker on my car.

https://unionshop.aflcio.org/Sprawl_Mart_P317.cfm

[I work for workers]

50. There is no resisting Wal-Mart.

I used to be an AFL-CIO lobbyist, and they sent me to a Wal-Mart protest once. Around ten people showed up, held candles, passed out pamphlets and shopped at Wal-Mart. That's right, at a Wake Up Wal-Mart event, nine out of ten protesters went in to shop. One legit union bigwig had the nerve to show up, say "I'm here for you" and go straight in without stopping. I bumped into her on line. It could have been awkward, but we both knew the truth:

Americans love Wal-Mart.

[JeanGrey]

60. It's the truth. We do, and I'll admit I love it too.

[drmeow]

65. Americans love Wal-Mart.

Not this American. Even if I did like their corporate attitude (which I don't), I don't like the feel of their stores. I walk into a Wal-Mart and want to run out of there screaming. It feels like an Americanized third world country - desperate, cheap, poor, and with all the personality and uniqueness homogenized out of it. The last time I went into a Wal-Mart was because I needed cash and there was a credit union branch inside with a machine I could use without paying a fee. Other than that, I haven't shopped at Wal-Mart more than once in past 10 years and that was only because I had been unable to find the product I was looking for at any other store (this was 7 years ago and I hadn't gotten high speed internet or started shopping on-line). I don't even like driving near Wal-Mart stores due to the traffic. They are about to open a Wal-Mart about 1 mile from my house - I will not shop there unless all other alternative venues close.

[B2G]

77. Uh, isn't Sams

owned by Walmart?

Aren't they essentially the same corp?

[JeanGrey]

3. I do not find Wal Mart meat to be any lower in quality than other

grocery stores, and I specially do not find their produce to last only "two" days. That is nonsense. I buy produce there every week.

As far as the rest of the store - Wal Mart has a great toy department, with much of the same selection you get elsewhere higher, a great sporting section (especially for fishing) and one of the best yarn crafts sections anywhere as far as selection and price. I always buy my fish tank supplies there as they are the same as petco or petsmart and cheaper. I don't like their fish though, they should give up that part as they aren't good and not looked after properly, but that can be true in the larger chains or smaller pet stores as well.

For instance the same filters I buy for my fish tank are 5.99 or on sale for 4.99 for three at Walmart, and cost as much as 8.99 or 9.99 at the big chains or small pet stores, for the same thing.

[emilyg]

4. I save at WalMart.

I'm retired and the savings is nice. Charity begins at home.

[Skittles]

5. just so you understand at what price your "savings" come from n/t

[emilyg]

6. I do understand.

I do have to survive.

[Skittles]

8. I well understand that, too

I shop for an elderly, fixed-income neighbor at Wal-mart because that's her choice, and where her prescriptions are

[progressoid]

19. Someone told me that prescriptions are cheapest at Walmart but I found the opposite.

I called three chain pharmacies, K-mart, Walmart, grocery store pharmacy. Walmart was the second most expensive. The cheapest came from the grocery store. Saved me almost $20 by not shopping at Walmart.

There is no generic version by the way.

[Skittles]

24. I am going to work with her on that prescription plan thing

she's gonna give me a list, I'll type it up and I will take it around and see what I can find :)

[JeanGrey]

54. I have very good health insurance, but I have four prescriptions

per month now that I can get for four bucks at Walmart, if I used my insurance the copay would be as high as $25.00. That saves me as much as eighty bucks a month. Plus I also have elderly family that get prescriptions there.

[prolesunited]

62. Target and Kmart both have low-cost generics as well

and if you are near a Meijer, most antibiotics are free.

[JeanGrey]

53. If I don't buy there someone else will. I refuse to shop at Target

because they are downright nasty. And I couldn't afford to do as many crafts (I crochet a lot for abandoned and adopted babies programs at hospitals) if I didn't get my yarn there.

[JeanGrey]

52. I don't shop there exclusively, but I do shop there and save

quite a bit. We also shop at Sams and Costco. Sams more than Costco because they are closer. We save huge amounts there on staples.

[Omaha Steve]

76. So you have a retirement

Do unto others....

Wal-Mart workers earn an average of $22,500 annually. According to the U.S. Census Bureau, the threshold of poverty in 2006 for a family of four was $21,200. Wal-Mart spokeswoman Tara Radohl says the retailer offers competitive pay. "Our average, full-time hourly wage is $10.83 and is even higher in some states," she said. "For example, as of January, 2008, the average full-time hourly wage is $12.06 in Massachusetts, $11.32 in Illinois, $11.22 in New York, $12.17 in New Hampshire, and $11.12 per hour in California."

Not to mention the higher tax bill from workers not having a health plan. Open your eyes to the real world.

[CRF450]

10. Agreed, they have plenty of good stuff despite being made in China

Now when it comes to clothes (mainly shoes), electronics, car parts (except oil) I shop elsewhere.

[JeanGrey]

55. It's funny but speaking of shoes - Walmart carries Dr. Schols,

I have a terrible edema foot problem and can only wear shoes that have strap high across the toes and nothing against the ankle - walmart has a pair of Dr. Schols that cost two bucks, I kid you not, I can wear them and they give me support and cost next to nothing. I think they are supposed to be "beach" shoes but I live in south and wear them almost year round. Without those shoes I'd be in trouble and I've never found a comparable shoe in another store even for big bucks. So I do buy that one shoe.

I also love the five dollar DVD bin...................

[CRF450]

70. I hear nothing but good stuff about DR. Sholl's too.

But I dont wear them as I dont have any foot problems. Pretty much all I wear is skateboarding style shoes made from DC Shoes, Osiris (my fav) and Zoo York. I'v bought walmart shoes for work/play, but they'll only last for about a couple months, so, no more from them! Now, pants and shirts, I dont care, as long as they look nice and suit me just fine, I'm happy :)

[napi21]

27. With meat, it depends on your personal preferance. Perhapse

the produce depends on the individual store. My personal experience with the produce at the one closest to us has been bad 5 out of 5 times. I don't buy a lot of produce, but I do buy lettuce, tomatoes, potatoes, onions, and some apples & oranges. The lettuce & tomatoes litterally lasted 2 days before the lettuce turned brown and the tomatoes had to have a lot of soft muchy spots cut away. The potatoes (5#) had a green layer just under the skin, which is the sign of OLD potatoes.

I I don't doubt they have a great toy department and sporting goods dept. as well. I just don't shop in those areas.

I do have dogs, and WM doesn't have any of the foods I feed them.

[Tess49]

32. Generally speaking, the meat sold at the Wal Mart stores in my

town is very low quality. At least it was the last time I bought anything there. I haven't been to one is nearly three years, so maybe it's better now.

[liberal4truth]

34. Bingo!!! I 'd rather eat dog food. Its that bad.

[eShirl]

45. I think their fresh vegetables age faster because they keep the store warmer

than a regular grocery store does

[JeanGrey]

56. I didn't find their food to be that bad. Maybe you just have a bad

store. I have a dog and used to have cats, Walmart carries Iams and I used to feed that. Now I only buy Natural Balance for my dog and only Petco or feed stores carry it. But, for instance I bought a retractable leash for her and it cost $8.99 at Walmart, the exact SAME leash at Petco was 18.00. They also carry inexpensive covered litter boxes and pet carriers but I try to catch those at Tuesday Morning. I also buy pet toys there, they are WAY cheaper than many stores.

[liberal4truth]

33. I do. Out here they let the union butchers go, so the meat is pre-packaged with nitrogen gas.

It looks very red in the package, but the minute you break the plastic seal ir degrades faster then other stores meat and it does not taste as good, either.

Needless to say, I don't but WM meat at all due to those factors.

[JeanGrey]

57. I have no problem with it, or Sams either. We get the best

Salmon from Sams.

[madmom]

39. Duck, you'll get flamed for these remarks!

[JeanGrey]

58. I know, but I'm trying to be fair - I use Walmart and I DO save a

lot of money there. I'm on a fixed income and I'd lose the pleasure of my fish and my crochet if not for Walmart. I can't afford to pay six bucks for a skein of yarn when I get it there for 1.99 and 2.99.

I'm also a BIG dollar store shopper!! I buy almost all of my shampoo, bath gels and stuff there. I hate to pay more than a buck for that stuff, it is just as good as the expensive brands in other stores.

[Dont_Bogart_the_Pretzel]

7. Sure...oranges @ $.68 each (small baseball)

med apple $.93lb
I don't think I'm saving very much!

[JeanGrey]

59. Buy fruit at Sams. I get huge bags of naval oranges for something

like 5.99 to 7.99 for pounds of them. Apples too.

[Dont_Bogart_the_Pretzel]

74. Good tip JeanGrey,

I thought about that too but the nearest Samsclub is 35 miles away... I wont save much money on them apples.
But when I get a "Samsclub" list with other big town shopping list, I'll stop bye there.

[JeanGrey]

75. We're lucky that our local Sams in less than six miles away.

If it were further, we would simply shop there less but buy more. I love naval oranges and love getting a huge bag for next to nothing compared to the grocery stores. They also have those big containers of grape tomatoes (yum).

[aasleka]

9. Maybe costs less but local ownership's tax base is sent to Arkansas

not in your hometown, they don't help the little league team or help out in the community. There is a lot to be said for local ownership of business in that they have a stake in the community.

It's worth it to pay a little more

[liberal4truth]

36. Perhaps, but when you live where the city services sucked before WM moved in, who cares?

[aasleka]

38. Hmmm, when was the last time your street was dug up and water/sewer mains replaced?

They last for about 85 years so most major cities are due as well as any that were part of major infrastructure renewal pre-1950.

You think they will send the bill to Arkansas? It's worth a little more to shop local, local ownership owns a peice of the community.

[Rage for Order]

11. My own personal experience...

Take this as anecdotal since it's only my experience, but overall I'd say they save me about 20% on my total grocery bill compared to what the other supermarkets in my area charge for the same items.

[eShirl]

14. Me too, I arrived at the same figure...

about 20% savings on groceries I buy there.
I do try to get my fresh meat and vegetables from another grocery store in town, though. And eggs, I have to have Nellie's Eggs, which they don't carry.

[Balbus]

15. 20% sounds about right in my area, also.

If I have to buy more than 3 or 4 grocery items, I'll always go to Walmart. Just throwing away money, otherwise.

[HughMoran]

12. Haven't shopped there in 4 years

If I had my way, nobody would shop there.

[Zywiec]

13. Apparently quite a bit of savings

From another thread:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x3086007#3087790

[HughMoran]

48. They stated that the market was overpriced

Your comparison is invalid. Also, defending the criminal anti-union Republican WalMart is not something I would be caught dead doing. Of course, I can say this since I haven't been is a WalMart for 4 years :P

[Breeze54]

16. Anything I ever bought from Wallymart fell apart within a month.

Their crap sucks the royal route! :grr:

I haven't shopped at any Wallymart in the last five years or longer, for that reason
and the fact they suck and treat people badly, their workers and their China workers
and the companies they put out of business.

[Unbowed]

17. Not enough.

I'm not giving them another penny. Saving a few bucks isn't worth my self-respect.

My niece talked me into taking her to the mall last Saturday. We were heading out and she turned to me and said, "Let's stop at Wal-Mart first." I told her that story that KO's been telling every night. She said, "We're going to Target."

I'm not sure Target is all that much of an improvement but Wal-Mart is the company that made (and still makes) promises they haven't kept. The biggest lie of all is that they don't need unions because they take care of their associates.

[Zywiec]

18. Does Target sell groceries?

I'm not sure, as I haven't seen any sell groceries in my area.

[Unbowed]

21. The Targets I've been to only have small food departments, not like a Super Wal-Mart.

Far too many people love Wal-Mart because of the prices and the convenience of one-stop-shopping. The concept appeals to Americans because we already spend more of our day working that do most western nations. And many of us have to hold down two jobs in order to make ends meet. Add the cost of gas into that equation and convenience becomes a necessary evil.

[drmeow]

66. Its a vicious cycle

We have to work two jobs because too many jobs don't pay a living wage which means we have to shop at the low price chain store that helped take away those living wage jobs and put the local companies out of business which lines the pockets of the super rich corporate owners of the low price chain store who don't pay their fair share in taxes which means our taxes are higher and we get less services so we have to get a second job and keep shopping at the low price chain store because we can't afford anything else which reinforces the screw the little guy profit uber alles mentality of that corporation and makes them rich.

[Unbowed]

78. Sure is.

They are exploitative no matter how you look at it.

And we have no legislative protection against the monopoly that is Wal-Mart.

[napi21]

23. Target does have some Super Target stores and have a hugh

grocery department...same as any grocery store. There was a "new style" Target that just opened 3 miles from me. They have a grocery dept. larget than their regular Target stores, but it's much smaller than any grocery store and they have no perishables like produce & a meat department. Their prices on their own brand are pretty good, but name brands are much the same as any other grocery store.

[RebelOne]

41. The Target in my neighborhood has a very large grocery department.

I save quite a bit of money as compared with the local Kroger or Publix.

[Lorien]

64. I buy groceries at Save-rite and watch for sales at Publix

America was a much, much better place to live before Wal-Mart became a superpower. I save just as much as I would at Wal-Mart by shopping smart (looking for sales and stocking up on staples when I find them),and I don't have to sell out my country.

What amazes me is how people suddenly decide that they CAN NOT survive without something that really hasn't been around for long at all.Ask a group to give up Wal-Mart, plastic shopping bags and high fructose corn syrup and many will act as if they were just forced to become the newest castaway on "survivor". We were better off before cheap unhealthy polluting non-worker-friendly crap became so available. If we wouldn't buy it and insisted on quality American made goods EVERYONE would be living a much better life here in the U.S. It's not easy to find non- Chinese products out there now, but I'm willing to search online until I find European, Canadian, American, etc. made items...or I'll go without.

[Generic Brad]

20. Since when is buying more shit than you need called "saving money"?

My wife asks to go to Wal-Mart to pick up some cheap $2.50 item on special and then we wind up throwing $150 worth of other impulse buys we didn't need in the first place because it was "on sale". Rather than save me $2500 a year, I think they pry about that much extra out of me.

[Zywiec]

44. It is Walmart's fault that you can't control your spending?

Hopefully that $150 worth of things you didn't need in the first place at least impressed your neighbors enough to go out and do the same.

:eyes:

[Generic Brad]

51. I can control my spending

I'm just not the one who throws crap into the cart. My wife and daughter are suckers for a "sale".

[RufusTFirefly]

22. Kill your neighbors. Steal their stuff. Even cheaper.

Wal-Mart's great -- if morality doesn't enter the picture and you have a scorched earth policy.

[dysfunctional press]

25. i'll NEVER be a customer, so i'll never know.

nt

[backscatter712]

26. Me neither.

I haven't set foot in a Wal-Mart in more than a year, and then only under protest.

I hate those fucking places with the fire of a thousand suns.

[liberal4truth]

35. I used to say that...until I was done dirty by a Union, then I had to shop cheaply..

to make ends meet, unlike my days of shopping at union-only supermarkets.

[dysfunctional press]

43. i'm on pemanent total disability- my monthly check is $1100...

and i'll still NEVER shop at any walmart.

[tabasco]

28. I go to Food Lion and dont buy anything that's not on MVP!

Cheaper than Mao Mart!

[LeftyMom]

29. Wouldn't catch me dead there. I like good deals, but on quality stuff.

I don't think buying a bunch of cheap shit that falls apart right away, crap toys coated in lead, and garbage "food" is a good way to save at all. Shopping at WalMart is penny wise and pound foolish.

Even if they treated their employees well, I still refuse to pay new prices for cheaply made crap that lasts less time than the average garage sale find.

[Skittles]

37. it's an ugly, dirty store too

very unappetizing

[JeanGrey]

61. Sorry, but Walmart carries many of the exact SAME brands

as other stores. That is simply a fact. I do a lot of crafts and for instance, certain brands of yarn are sold many places and that brand is ALWAYS cheaper at walmart.

[prolesunited]

63. Do they pay you to defend them in forums?

If not, I would print this thread and try to get some comps on the yarn.

[JeanGrey]

67. Hey that's a good idea. I might try it!

[Lydia Leftcoast]

30. I've shopped at WalMart ONCE in my life

I was down in Mississippi volunteering at a Lutheran-Episcopal relief center after Katrina, and a bunch of us decided to replenish some of the supplies that we'd seen becoming depleted. Locals told us that the only major store open was a WalMart, so off we went.

Depending on where we'd been working, we bought supplies for that area. I'd been working in the medical tent handing out non-prescription drugs, bandages, and the like, so I bought $100 worth of things like ibuprofen, Pepto-Bismol, Robitussin, Band-Aids, and Children's Tylenol. I will say that $100 went a long way.

Other than that, I've avoided the place.

Recently I realized that for the groceries that I buy, such as locally produced, fair trade, and cruelty-free foods, my local co-op is no more expensive than and sometimes cheaper than conventional stores.

[eShirl]

31. I agree with you on the cruelty-free food

The local Walmart here carries only one brand of free-range eggs (which they can't seem to keep stocked), and they are about $1.50 more per dozen than the local-ish brand I get at the grocery store way on the other side of town.

[newportdadde]

40. Speak strictly on food items they are substantially cheaper.

Feeding a family of 6 I find most of their grocery items to be a better bargain. An example would be lipton alfredo noodles 1.21 vs 1.00. Many other examples, cereal usually something like 2.00 vs 2.50 etc.

I do buy meat, milk and diapers at Costco and I buy loss leaders at grocery chains like HyVee etc.

I don't typically by a whole lot else at Walmart besides food as I find I can usually get better deals at other places, online or better yet I try to get it used.

Sure I could walking into my local HyVee and pay a total of 125 instead of 100 and show that big bad Walmart what for and guess what... I'd have 25 less bucks in my pocket.

Yes I know there are hidden costs like the community having to support their workers poor health-care.

Yes I know they put those ma and pa stores out of business but lets be honest here did you know any ma and pa types? I did, my uncle was the only grocery store owner in a 15 mile radius of a town of over 2k people. He also overcharged the hell out of the elderly who couldn't get out to shop and used his fortune to control town politics, real estate etc. He was an overweight, cigar smoking Republican walking caricature who treated his workers like shit, just as bad as any Walmart could ever imagine to do.

[JCMach1]

42. BS-- Come to the UAE and I will show you the 'REAL' prices of the Chinese items

They are ROBBING the American people

[drmeow]

69. Of course they are

because the money they save on production doesn't go towards cheaper prices, it goes towards higher profits. All the goods and services that have been outsourced overseas could be provided in the US if corporations paid reasonable rather than obscenely high salaries to CEOs and other upper management, expected reasonable rather than outrageously high profits, and paid reasonable rather than exceptionally high dividends. That was how we were able to prosperous without screwing workers in the 50's

[JCMach1]

73. Exactly, Walmart uses their leverage over Chinese companies as a monopoly

They can't push their products independently in the States, or Walmart would cut them dead.

[aikoaiko]

46. At least 20% and more depending on the store.

Yes, the convenience of being able to get almost everything I need at one place is a significant factor especially when toting a kid around. Getting in and out of the car seat is suck a PIA. It is possible to get some products cheaper here and there, but when it comes to shopping at one store, WM is cheapest overall.

For what its worth, WM is becoming more complex in their food products. I actually found Turon from Spain sitting on the self in the Mexican food section and it was wonderful.....

[Bake]

47. Their price on cigarettes is higher than any place in town.

I don't buy 'em there.

Also, their meat and produce suck. But they're cheaper than Kroger on a lot of food staples.

Bake

[huskerlaw]

49. I'd have to drive over 30 minutes to even find a WalMart

and I like it that way.

While I do understand that some people don't really have a choice, either because WalMart is by far the closest store or because their budget makes it necessary, I will do anything to avoid even stepping foot in one of their stores. Any "savings" I might get from shopping there is greatly outweighed by the disgust I feel for having supported that piece of shit company.

[alittlelark]

68. The sad thing is that 30-50% That see the ads will BELIEVE them

That is all Wal-Mart needs. They have private security to protect from leafleting, they have private security which deals with Unionization....


They have independant nations (legally) in most of these locations.

It is a nasty symptom of a terminal disease.

[Jamastiene]

71. This should be interesting.

:popcorn: :beer:

[EmilyAnne]

72. The problem, I think, is that the quality of what can be purchased there is often so poor, that

the shopper will end up having to replace it much sooner than they should. Then you end up with more money spent and more junk in a waste dump. Just look at what Walmart did to Rubber Maid products. My grandparents had the same set of Rubber Maid products for decades and even I, know, have some of their pieces. Recently, I went out looking to buy a good set for leftovers since we do so much cooking. Nope. Can't find it. Now, its really junky plastic stuff that carries the same name, but comes from China.

http://www.pacificviews.org/weblog/archives/000714.html