Walmart - Inflation? or Deflation?

[Rajiv]

Noticed an interesting thing with Walmart. The local Walmart underwent "remodeling" over the fall. They put in a small produce section. However, after the remodeling, the Walmart resembles a USSR era Russian supermarket. Aisles are wider (much wider) than before, and you have shelf shelf after shelf (no! rather I should say row after row) of the same item. The number of items stocked is maybe a quarter of the items stocked before the "remodeling." Is this limited to the local Walmart? Or is it a Walmart wide phenomenon? Anybody else notice anything similar?

[shiny!]

Re: Walmart - Inflation? or Deflation?

Very interesting observation. However, I can't stand to shop at Walmart, otherwise I'd let you know.

[raja]

Re: Walmart - Inflation? or Deflation?

I do not see those changes at my local Walmart.

BTW, I love Walmart.
Cheap, but mostly adequate quality. Some incredible bargains.
You can find many of the same items cheaper than available elsewhere, e.g., some of hardware items are cheaper than at Lowes. Other examples, ammo, clothing, electronics . . . .
There is some junk, but you can return anything if it doesn't measure up.

Then there's the added benefit of providing jobs to impoverished Chinese wanting to raise their standard of living by moving from the farm to the city. Better than foreign aid donations, and because you get stuff in return

[shiny!]

Re: Walmart - Inflation? or Deflation?

Boycott Big Banks • Vote Out Incumbents

In it's own way, Walmart is just as bad as the Big Banks when it comes to destroying good American middle-class jobs. They move in to a town and there goes Main St. There was a time when WallyWorld had signs all over that said "Proudly Made in the USA". Now, it just feels like a traitorous act to shop there.

Not trying to start a war here- just saying how it feels to me.

[DToM67]

Re: Walmart - Inflation? or Deflation?

In it's own way, Walmart is just as bad as the Big Banks when it comes to destroying good American middle-class jobs. They move in to a town and there goes Main St. There was a time when WallyWorld had signs all over that said "Proudly Made in the USA". Now, it just feels like a traitorous act to shop there.

Not trying to start a war here- just saying how it feels to me.

I've gotta jump on your coat-tails Shiny!. I can't stand the place. I only enter under duress. Everything about it, from the parking chaos, to the rodents in a maze vibe, makes me 'itch' to get out.

As for the other aspects... Talk about a terrible corporate citizen... Union blocking, poor-wage paying, emergency-room (non-insured) filling lousy neighbour!

Put every long-term viable business model out (of business) based on FIRE's always-expanding (your home will only ever increase in value) model/theory. When the jigs up all of the folks (and incomes) which kept the town running are gone. Walmart is a black hole.

Edit: Sorry Rajiv, missed the point of the OP... Your observations are quite interesting to read.

Locally, we had a Walmart in-town in the mid 90's... then a Sam's club also opened. Sam's then closed a few years later. A month ago a second Walmart super-bells-and whistles-everything store opened in the very same old Sam's Club location. I haven't been inside the new store, and haven't been in the 'old' Walfart since springtime, thank goodness!

[FRED]

Re: Walmart - Inflation? or Deflation?

I've gotta jump on your coat-tails Shiny!. I can't stand the place. I only enter under duress. Everything about it, from the parking chaos, to the rodents in a maze vibe, makes me 'itch' to get out.

As for the other aspects... Talk about a terrible corporate citizen... Union blocking, poor-wage paying, emergency-room (non-insured) filling lousy neighbour!

Put every long-term viable business model out (of business) based on FIRE's always-expanding (your home will only ever increase in value) model/theory. When the jigs up all of the folks (and incomes) which kept the town running are gone. Walmart is a black hole.

Edit: Sorry Rajiv, missed the point of the OP... Your observations are quite interesting to read.

Locally, we had a Walmart in-town in the mid 90's... then a Sam's club also opened. Sam's then closed a few years later. A month ago a second Walmart super-bells-and whistles-everything store opened in the very same old Sam's Club location. I haven't been inside the new store, and haven't been in the 'old' Walfart since springtime, thank goodness!

One of the better and older JibJab animations.

Personalize funny videos and birthday eCards at JibJab!

[flintlock]

Re: Walmart - Inflation? or Deflation?

I despise the place also, but more for the customers who shop there than any thing Walmart does. Its a real snapshot of America and it's depressing as hell.

It is kind of amusing how the people who get so excited about saving $5 at Walmart don't realize the possible impact Walmart may be having on their ability to continue to afford to buy stuff there.

I've never really noticed any huge savings there really when you compare apples to apples. I guess it depends on what you buy. Some really cheap clothes but then you generally get what you pay for. It is kind of a one stop shop though I guess. You can pick up a quart of oil at the same time you buy a TV. I just find the mental cost of shopping there too dear!

[swgprop]

Re: Walmart - Inflation? or Deflation?

I despise the place also, but more for the customers who shop there than any thing Walmart does. Its a real snapshot of America and it's depressing as hell.

You think?



http://www.peopleofwalmart.com/?page_id=9804

[flintlock]

Re: Walmart - Inflation? or Deflation?

That looks like my Walmart, ouch!

[DSpencer]

Re: Walmart - Inflation? or Deflation?

I haven't noticed anything that extreme. Maybe some instances where I felt like there was an excessive stock of certain items though.

I have mixed feelings on Walmart. They certainly have low prices on a lot of items including identical products compared to other stores. They also have some inferior items. Meat and produce generally do not match the quality of other grocery stores. The creepiness of the other customers is certainly a factor. This varies widely with location though. There was one store in particular where by my anecdotal observation, about 75% of transactions were food stamp cards or WIC.

To analyze their corporate behavior and the effects of their stores on the US economy would take a whole novel.

[don]

Re: Walmart - Inflation? or Deflation?

Noticed an interesting thing with Walmart. The local Walmart underwent "remodeling" over the fall. They put in a small produce section. However, after the remodeling, the Walmart resembles a USSR era Russian supermarket. Aisles are wider (much wider) than before, and you have shelf shelf after shelf (no! rather I should say row after row) of the same item. The number of items stocked is maybe a quarter of the items stocked before the "remodeling." Is this limited to the local Walmart? Or is it a Walmart wide phenomenon? Anybody else notice anything similar?

The wider aisles are an industry-wide phenomenon. Stealth inventory reduction that goes hand-in-hand with stealth inflation via down-sized packaging. My wife and I notice an item or two missing maybe once a month. "We no longer carry that item" being a popular response. Shelves fronting running feet of the same item is not restricted to the low end stores.

[ggirod]

Re: Walmart - Inflation? or Deflation?

Rajiv - I lurked for a while but with the tepid response to your question so far, I feel compelled to answer it. Four or five months ago I saw the same thing happening at my local WalMart. It appeared that they reduced their inventory by maybe 20% by the rearrangement.

If you are a bargain hunter, disciplined weekly or bi-weekly trips through the store in the aftermath looking in various departments of interest for clearance products can save you some big bucks. Your timing is ideal - "After Christmas" combined with a layout shrinkage and periodic inventory reductions to avoid local property taxes (your locality can vary) could be a boon if you are in an acquisitive phase of life and want what they have to sell. You may find items priced cheaper in the aisles where they "belong" than at the end caps where they are ostensibly on sale ... If you buy from the end caps you will get a nice surprise at the checkout, but if price is a consideration the real price may be in the aisle .... That was a clue to their new localized algorithm - aisle prices on some items were cheaper than end cap prices...

I think the new changes may accompany a transition to store-level rather than regional or national inventory management. The economic crunch combined with demographics has strong local effects on buying habits so one locality may still be buying some products while others are not. Items whose local sales really suck (or are expensive to transfer elsewhere) will be found at extreme discounts. Look for bargains all over the store in the aisles, not in concentrated clearance bins, etc.... at least that is the pattern here. For me, that was a clue to the algorithm - they did not bother to move the merchandise to a clearance aisle - instead they sought to influence buying where the merchandise sat. Probably some folks at WalMart are really smart and using their brains.... I observed that they were (by comparison with the rest of business) really smart thirty years ago ....

I remember in the early 80s (in the depths of a recession) WalMart perfected its shiny new inventory control systems and repeatedly cleared its shelves of slowly moving merchandise. It led Kmart and others and probably survived as a result. There were amazing bargains on really good stuff when their computer declared clearance items. I am still using expensive and high quality goods purchased very cheaply back then... For one who worked with computers the algorithms back then were apparent and almost transparent. This round is "smarter", IMHO.

[nero3]

Re: Walmart - Inflation? or Deflation?

I don't like Wal-Mart. Its places like that that have helped keep inflation in check (let central banks print a ton of money), without causing prices to rise. Had you had all the old style shops, the CPI would had been much more sensitive to inflation, less money would had been printed, and prices had been the same, therefore Wal-Mart have not given lower prices, they have instead caused higher prices, because all the money Wal-Mart and it's cousins enabled to be printed is coming home to roast.

[raja]

Re: Walmart - Inflation? or Deflation?

As for the other aspects... Talk about a terrible corporate citizen... Union blocking, poor-wage paying, emergency-room (non-insured) filling lousy neighbour!

Isn't Walmart a reflection of globalization?

If you're going to enjoy the benefits of cheap labor and the products it provides, then you will have to compete with those workers in poorer countries who are willing to work for lower wages. In global marketplace, as things equalize between the richer and poorer countries, the richer countries will experience a reduction in standard of living. Walmart's business practices are a symptom of that effect.

I'm not claiming that there isn't some bad behavior, but when you talk about sweat shops in China, keep in mind that the peasants there are falling all over themselves to get to the cities to work in those sweat shops. To them, it's a better life. Aren't Walmart's crimes you refer to, "Union blocking, poor-wage paying, emergency-room (non-insured) filling lousy neighbour!" primarily due to the US having to accept a lower living standard in order to compete with the poorer nations' workers who are willing to work for less and under less desirable conditions?

The real problem with the world is that the Financial Elite sucks out an disproportionate amount of the world's wealth, lowering the People's standard of living everywhere. That's what needs to be fixed.

And, for those who criticize Walmart for displacing local small stores . . . done any internet shopping lately?

[jpatter666]

Re: Walmart - Inflation? or Deflation?

And, for those who criticize Walmart for displacing local small stores . . . done any internet shopping lately?

Marvelous -- I'm going to remember that one for the next time people are slamming Walmart.