Sunday, November 28, 2004

Wal-Martdom

So where do I see Wal-Mart and all the big box retailers going? As I have said before, the competition will turn to the race for the bottom as retail giants gather their efforts to compete in volume. This practice is entirely against the pillars of capitalism. For the government to sit back and watch and in some cases encourage the abuse of consumers in the name of corporate profits is unacceptable. The anti-trust laws have prevented monopolies and their abuse in setting outrageous profit margins, yet we have seen no action taken to prevent companies from becoming essentially monopolies by setting extremely low profit margins. Wal-Mart would argue that this is the dream come true for consumers.

I believe we have yet to see the pinnacle of Wal-Martdom. With the coming saturation of the US market and its expansion efforts more focused on the global market and internet sales, there is no limit in sight for Wal-Mart. Its survival is dependant on growth. It must grow and it will do anything to grow larger and faster. Its genome is held in tact by the Wal-Mart culture. Each “associate” of Wal-Mart understands and recites the code of conduct that enables the organism to live.