Walmart - Why They're Hated

Walmart's immense size and low-price strategy have led to significant success but also garnered widespread criticism. While it has created jobs and provided affordable goods, its practices have negatively impacted smaller businesses, suppliers, employees, and raised ethical concerns about labor, environmental issues, and business practices. Despite criticisms, Walmart has made efforts to improve these issues.

Walmart's Size & Growth

• 00:01:50 Walmart's rapid expansion and massive size have led to concerns about monopolies and reduced competition, particularly given its acquisition strategy of buying out smaller competitors. Walmart's acquisition strategy has been implemented across decades in the US and globally, with examples provided from its early years to the present day. This scale gives Walmart a significant influence on the market.

Impact on Small Businesses

• 00:04:28 Walmart's low-price strategy has had a negative effect on small businesses, particularly in smaller towns and communities. Walmart's low prices have been difficult for smaller competitors to match, leading to closure or forced reductions in size. This phenomenon is known as the 'Walmart Effect', with some positive effects but a greater impact on local economies.

Supplier Practices

• 00:05:48 Walmart's emphasis on low prices puts pressure on suppliers to reduce costs, potentially leading to practices like reduced salaries, cheaper materials, and offshoring production. Suppliers are pressured to minimize costs and find ways to keep the price of goods low. A major source of goods sold at Walmart comes from China, raising concerns about job loss and economic impact in the US.

Employee Treatment

• 00:07:36 Walmart's employee treatment has been a significant source of criticism, with numerous complaints about wages, scheduling, lack of benefits, and discrimination, despite Walmart being the world's largest employer. Walmart's historical stance against unionization has been a factor in controversies and has been linked to the high turnover rates. The company has made efforts to improve wages and training but has still faced criticism.

Ethical Issues

• 00:09:53 Walmart has been involved in various ethical controversies, including bribery, child labor, and environmental concerns. The company has been involved in bribery controversies with foreign governments and has faced scrutiny over child labor practices in countries where it sources goods. While the company has adopted sustainability initiatives, concerns remain about the environmental impact of its vast operations.