- Multinationals -
Convenience? That is where they are weakest!
Posted by: Hugh Morris ( Howard Stern Society, USA ) on August 20, 1999 at 11:08:24:
In Reply to: it all sounds too easy to me posted by camus on August 18, 1999 at 15:46:45:
Camus: It's a nice theory mate and I wish I could share your optimism. We all get our just deserts, if we work hard we'll get what we deserve -that seems to be the general gist. Sadly, people are drawn to big stores like Walmart for reasons of 'convenience' without really thinking about the consequences of their actions.
Morris: A lot of small retailers make the mistake of trying to beat Wal-Mart on prices, but that is impossible. For small retailers, it often would actually be cheaper for them to get their wares from Walmart than fro their regular wholesaler. Fortunately, one way Wal-mart keeps their prices low is to build distribution centers in isolated, rural areas, and to cluster the stores near those distribution centers, all the cetter for cheap real estate and low property taxes. As a result, for many Americans, a trip to Wal-Mart is at least a half-hour commute. That, coupled with the fact that the place is filled with screaming children, sporadic staff, and cheaply made merchandise, make Wal-Mart a most inconvenient place to shop. The established retailers have a treendous advantage there.