Headline: American Families Now Save $2,500 a Year, Thanks to Wal-Mart

[chinaco]

Do you believe this?

Not many facts to back this up. I wonder if they mean, if someone shops exclusively at Walmart they would have saved $2500?

Wal-Mart Facts - American Families Now Save $2,500 a Year, Thanks to Wal-Mart

 

[Fireup2020]

I don't spend $2500/year here regardless! Bleah!

 

[Nords]

I don't spend $2500/year here regardless! Bleah!

Sorry, we only spent $462 there last year and so far this year we've only spent $254.

The rest of you are gonna have to pick up a lot of our slack, but it's OK with me if you keep our share of the savings...

 

[packrat44]

I save a lot more than $2,500/yr by not buying at Wal-Mart.

 

[Sandy]

I suspect we are over on our share. Generally do well with various disposable household goods, some yard stuff, small appliances, etc. Don't do clothes, jewlery, etc. I ran into a cheap lot this back to school year however - 2 backbacks and 2 lunchboxes - and I've had to replace 3 of these 4 already. I don't have the receipts, but I'm thinking I may head back in this weekend and demand refunds.

 

[chinaco]

I am wondering what their benchmark is for comparison purposes.

DW shops there for certain things, but probably around $500 tops.

If I thought we could shave $2500 off of our spending, I would shop at Walmart exclusively for items that we could get there. But I am skeptical about the number.

It is a nice bit of advertising via the news media. Make a bold statement and capture a few more customers.

I would like to see their statement backed up with some illustrations or case studies.

 

[Goonie]

I save a lot more than $2,500/yr by not buying at Wal-Mart.

You got that right! Same here! I never really cared much for WM, now they've opened a "Super" WM, and closed the old original one. The new one S*CKS worse than the old one!!! They have a greater quantity of items in stock, but much less variety of items. We used to go to the old WM about once a month to get a few things that (at that time) actually were cheaper than their competitors. We've finally given up on them! Every time that we've gone there to get something, they say, "Yes, we had that at the old store, but we don't have it at this store.....and we won't be getting any either." Also the prices are higher than ANY of their local competitors.

The parking lot at the old store was always full.....the new one (during their "busy time") has MAYBE 50-75 cars, normally (besides employees cars) there might be 20 customer's cars there.

Someone I know that is on a local business development committee, said the store manager told him that sales have dropped by over 50% since there big move, and that they are taking in less than 20% of there target sales figures. At least they've succeeded in boosting the business and profits of the local retailers in town!

I sure do wish them more bad luck!! Maybe they'll close up here, and some decent business will buy the property and move in! It certainly would be a prime location to open a REAL store!!!

I never spent $2500 at WM in a year, so I won't be saving that much. But I sure will save what I did spend there! I won't shop there anymore! And if ol' Sam Walton was still alive, he wouldn't either!

 

[justin]

"Global Insight, a leader in economic and financial analysis, analyzed Wal-Mart’s national and local impacts in terms of jobs, wages, prices, consumer buying power and GDP."

I think the $2500 savings per household includes the reduction in prices at competing retail establishments. The premise is that even if you don't shop at walmart, walmart is still saving you money because they force competitors to lower their prices to compete (and by driving mom n pop's out of business, thereby removing their higher prices from the marketplace average). Read the study - their calculations and methodology are explained there.

I spend close to $10,000/yr at one of the local super-walmarts. I've done enough research to know that they have the cheapest prices overall for what I purchase. I don't shop around at all (unless it is for a large purchase or electronics or something better bought online). I'm sure I could save a few dollars if I shopped around and went to regular grocery stores and bought things on sale, but the additional costs of gas and loss of my extremely valuable time negate any potential cost savings. Plus I like mingling with the proletariats!

Edit: I have to say the customer service sucks, much like most other retail outlets of any sort. Our local stores have been getting pretty bad about keeping certain staple items stocked at times. But walmart remains the "least bad" alternative for my shopping needs (a chore I don't particularly like).

Disclaimer: in the past a significant portion of my consulting fees originated from Walmart.

 

[FinanceDude]

You got that right! Same here! I never really cared much for WM, now they've opened a "Super" WM, and closed the old original one. The new one S*CKS worse than the old one!!! They have a greater quantity of items in stock, but much less variety of items. We used to go to the old WM about once a month to get a few things that (at that time) actually were cheaper than their competitors. We've finally given up on them! Every time that we've gone there to get something, they say, "Yes, we had that at the old store, but we don't have it at this store.....and we won't be getting any either." Also the prices are higher than ANY of their local competitors.

The parking lot at the old store was always full.....the new one (during their "busy time") has MAYBE 50-75 cars, normally (besides employees cars) there might be 20 customer's cars there.

Someone I know that is on a local business development committee, said the store manager told him that sales have dropped by over 50% since there big move, and that they are taking in less than 20% of there target sales figures. At least they've succeeded in boosting the business and profits of the local retailers in town!

I sure do wish them more bad luck!! Maybe they'll close up here, and some decent business will buy the property and move in! It certainly would be a prime location to open a REAL store!!!

I never spent $2500 at WM in a year, so I won't be saving that much. But I sure will save what I did spend there! I won't shop there anymore! And if ol' Sam Walton was still alive, he wouldn't either!

You brought up an interesting point: Sam Walton is probably rolling over in his grave. I think the business model he started way back when is LONG gone, and NOBODY wants to deal with the WalMart purchasing folks..........

 

[W2R]

I don't spend $100/year there. Someone had better take up the slack!

A lot of people buy their groceries there, so perhaps they are comparing their grocery prices to that of the most expensive organic food stores in each area. Otherwise, I have no idea how they could come to such a conclusion!

 

[Texas Proud]

Let's see... if they 'save' 10% then that would mean I would have to spend $25,000 per year on 'stuff' that Wally would offer... and I don't..

Heck, I don't spend much more than that for everything...

 

[TedMunson]

In the past I have tried not to shop at WM for many of the reasons Goonie outlined. And then I saw an interesting documentary, Wal-Mart: The High Cost of Low Price. It really blew me away. Now I can say that I never shop there.

 

[Independent]

I couldn't find a copy of the full study on the Walmart site. I finally ran down an earlier version at Global Insight. Here's an interesting quote from the summary:

the expansion of Wal-Mart over the 1985 to 2004 period can be associated with a cumulative decline of 9.1% in food-at-home prices, a 4.2% decline in commodities (goods) prices, and a 3.1% decline in overall consumer prices as measured by the Consumer Price Index-All Items, which includes both goods and services.

I'm sure that their "savings" includes the money you spend at all stores, on the theory that WalMart's competition drove everyone else's price down.

Here's another quote:

The 3.1% decline in the price level was partially offset by a 2.2% decline in nominal wages, so that the net effect was to increase real disposable income by 0.9% by 2004.

If I read that correctly, WalMart's impact on wages, when extended to their competitors (who presumably had to lower their wages so they could keep up with Walmart's prices) wiped out about 70% of the gain from lower prices. That makes the number more like $750 per family.

Somehow the negative impact on wages got dropped from the WalMart press release.

I'll also guess that the study didn't adjust for the fact that even without Walmart, other retailers would have gotten somewhat more efficient over that time. I believe that virtually all US businesses got more efficient over that 19 year span.

I still wasn't able to get the whole study because they require that you register before they'll let you download it.

I recall the part about "all stores" above from earlier news stories about this same study. I think that they also mentioned that WalMart paid for the study.

 

[haha]

I find it hard to shop at WalMart any longer because they are not anywhere close. But my doctor told me that he has patients on statins whose monthly pharma bill has gone from around $100 to $4 by filling the Rx at WalMart. Doc says this makes his practice easier because he no longer worries about whether people can pay.

I walked into a Walgreens with a big sign on the window -"We will meet or beat any price on prescriptions. So I sho\wed them mine, and asked if they could get close to $4. She said not anywhere close. So I go a little out of my way to Sam's Club, which has the same $4 generic price on many drugs.

Ha

 

[chinaco]

I find it hard to shop at WalMart any longer because they are not anywhere close. But my doctor told me that he has patients on statins whose monthly pharma bill has gone from around $100 to $4 by filling the Rx at WalMart. Doc says this makes his practice easier because he no longer worries about whether people can pay.

I walked into a Walgreens with a big sign on the window -"We will meet or beat any price on prescriptions. So I sho\wed them mine, and asked if they could get close to $4. She said not anywhere close. So I go a little out of my way to Sam's Club, which has the same $4 generic price on many drugs.

Ha

We have insurance. Prescription drugs are in placed into two categories, gotta have and nice to have. examples are statins: Gotta have - $5 copay (generic or patent), nice to have - allergy medicine - copay and remiburse at 50%.

$4 is less than our cost with insurance.

Walmart's incredible bargaining power with manufacturers and suppliers has lowered their costs and they use that angle to attract certain consumers.

I am a fan of low cost. I suspect that Walmart will be regular stop in our shopping routine. Especially when we ER and have more time on our hands.

 

[Eagle43]

We shop at Walmart often. Great store. Why? Price. We buy at least 70% of our groceries at Walmart. Anytime I have to buy anything, I check there first. I admire all of this concern for small businesses; I just don't share it. They are looking out for themselves, as am I. And are the employees there at gunpoint? Nope.

Bottom line: Walmart facilitates LBYM, don't ya know.

As to that union instigated propaganda piece, the "High cost of low price", here's a link which might interest:

Byron York on Wal-Mart on National Review Online

It appears that Walmart stores are visited (shopped at) 100 million times every week. That's a lot of happy cost-conscious customers and I'm proud to be one of them. Oh thank heaven for Walmart!

 

[Andre1969]

Well I think WalMart's trying to factor in other things, like saying their presence helps keep prices low in general. Not just their prices, but their competitors' prices as well. Anyway, all they did was pull the number $287 billion out of their butt, divide by 300 million (roughly the population of the US), and get $957 per person.

So even if you NEVER shop at WalMart, they're saving you money. Or so they'd like to have you believe.

 

[Bikerdude]

Wal-Mart is a classic "free enterprise" operation. What's wrong with that? I'm grateful for free enterprise as the dividends and return on my equities depend greatly on that system.

On the other hand I do miss the Mom & Pop hardware stores. I hate driving 20 miles and then walking a mile to buy a bolt.

It is difficult to have it both ways.

But I still wish I could.

 

[W2R]

Wal-Mart is a classic "free enterprise" operation. What's wrong with that? I'm grateful for free enterprise as the dividends and return on my equities depend greatly on that system.

On the other hand I do miss the Mom & Pop hardware stores. I hate driving 20 miles and then walking a mile to buy a bolt.

It is difficult to have it both ways.

But I still wish I could.

We have a little neighborhood Ace hardware store, as small as any old-fashioned hardware store you ever saw, and they actually hire people that know hardware and are pleasant and helpful. They always have what I want, even when the big box stores don't. The prices are higher, but I always leave smiling!

 

[FinanceDude]

We have a little neighborhood Ace hardware store, as small as any old-fashioned hardware store you ever saw, and they actually hire people that know hardware and are pleasant and helpful. They always have what I want, even when the big box stores don't. The prices are higher, but I always leave smiling!

I don't save $2500 a year at WalMart, but I am pretty sure I save $1000 a year at Sam's Club.......

10 pounds of frozen chicken breasts? Yum!!

 

[W2R]

I don't save $2500 a year at WalMart, but I am pretty sure I save $1000 a year at Sam's Club.......

10 pounds of frozen chicken breasts? Yum!!

Ewwww... when I evacuated for Katrina, I left 50 pounds of newly purchased chicken, fish, and shrimp in my freezer, along with a couple of steaks for good measure. When I returned, what a mess. After a couple of weeks with no electricity and hot, late summer temperatures, opening that freezer was an experience I would wish on nobody.

Frank was such a sweetheart. He actually did the first cleaning of that refrigerator for me. What a great guy! Just going in the house after it had been opened was enough to make me want to pass out.

I wouldn't keep over a pound of frozen chicken any more for anything, especially during hurricane season. A half pound is more like it. Since I am single, I don't have to have very much food on hand at any given time, so that works out nicely.

 

[Khan]

We have a little neighborhood Ace hardware store, as small as any old-fashioned hardware store you ever saw, and they actually hire people that know hardware and are pleasant and helpful. They always have what I want, even when the big box stores don't. The prices are higher, but I always leave smiling!

I love ACE.

Whatever I'm paying for the extra service, it's worth it.

When I wrenched my back, they would wheel stuff out and load it into the car.

 

[bosco]

I refuse to shop at Walmart because I deplore their business practices.

If you buy Levis at Walmart, you are not getting the same Levis you get at a different store. You are getting thinner cloth, and poorer stitching. Walmart leans on companies to cut costs and in many cases puts out special lower-quality marks. So just because you are buying 'brand x', you may well be getting a lesser product than 'brand x' at another store.

I heard an interview with the author of "the WalMart Effect." I haven't read the book yet but intend to. It validated much of what I had heard in other places.

Amazon.com: The Wal-Mart Effect: How the World's Most Powerful Company Really Works--and How It's Transforming the American Economy: Books: Charles Fishman


Obviously, it's a free market. I'd rather pay a bit more than patronize business that, IMO, are this damaging. But I wonder if the $2,500 includes deductions for the lower quality. Somehow, I doubt it.

 

[FinanceDude]

I refuse to shop at Walmart because I deplore their business practices.

If you buy Levis at Walmart, you are not getting the same Levis you get at a different store. You are getting thinner cloth, and poorer stitching. Walmart leans on companies to cut costs and in many cases puts out special lower-quality marks. So just because you are buying 'brand x', you may well be getting a lesser product than 'brand x' at another store.

I don't buy clothes there, mostly Kohls and TJ Maxx..............

 

[FinanceDude]

Ewwww... when I evacuated for Katrina, I left 50 pounds of newly purchased chicken, fish, and shrimp in my freezer, along with a couple of steaks for good measure. When I returned, what a mess. After a couple of weeks with no electricity and hot, late summer temperatures, opening that freezer was an experience I would wish on nobody.

Frank was such a sweetheart. He actually did the first cleaning of that refrigerator for me. What a great guy! Just going in the house after it had been opened was enough to make me want to pass out.

I wouldn't keep over a pound of frozen chicken any more for anything, especially during hurricane season. A half pound is more like it. Since I am single, I don't have to have very much food on hand at any given time, so that works out nicely.

I live in the MidWest, no hurricanes here..........