This massive retail chain has sold itself as one that sells merchandise at low prices, but what it has really done is control costs.
In the a little over half a century that the retail giant has been in existence, it has become the largest force in terms of the retail business that the world has seen. In 2012, the retailer realized $470 billion in revenues. That is $1.3 billion per day.
There are two million-plus Walmart employees.
But, they are not all happy. The company has faced lawsuits against it, mainly for unfair labor practices. Many charges of supposed abuse, such as employees locked in stores throughout the night to clean, have been made.
As the retailer has grown, so has the resentment against it. The once too-happy-to-supply vendors now continually complain that Walmart has a monopoly-like power over them. Local merchants also have been pushed out of rural areas.
Some of these allegations are justified, while others are just criticism against the retailer’s success.
Walmart, like many empires before it, is rotting from the inside. It is rapidly declining.
There are three signs that Walmart is collapsing:
1. Walmart stores are sloppy
Retail stores have to be constantly maintained. Produce sections, clothing racks and aisles and sections need constant attention. Keeping a space that stands on more than 4 acres in top shape is a challenge.
Walmart’s cost control focus has often meant that basic upkeep is often neglected. Walmart has earned a reputation for having mislabeled and empty shelves and poor displays. Sloppy shelves and dirty stores show lack of respect and are an insult to customers.
Where people had few options for shopping, now there are companies that are giving good bargains and are tidier.
2. Their business model has produced its problems
Reuters has reported that the retailer may bid for ParknShop, which is a Chinese grocer. International expansion is and has been a challenge for Walmart. As the United States market is saturated, the retailer was reported in 2012 by The New York Times as having attempted to bribe officials, as they wanted to build on some ancient ruins in Mexico.
3. Big cities cold
Walmart is accused of growing and spoiling it for the Mom and Pop stores. As the retailer tries to get into the urban areas this reputation haunts it.
Local protesters work against these efforts to expand their reach to the big cities. Thomas Menino, Boston’s mayor, has refused to allow the retailer to contribute to giving summer jobs to kids in the state. He has accused it of wanting to buy the way into the town. Menino has declared that the retailer should first deal with its social issues before they enter Boston and pour cash around like its sewer covers.
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