Tuesday, March 8, 2011

The Fight over Wal-Mart

Wal-Mart (herein after to be called “Store’), the biggest retailer behemoth in the world has been trying unsuccessfully to open a store in New York for the last so many years. But every time they even show any hint of doing that, they run against a wall of protest from labor unions to local shop owners with divergent views but with one purpose to oppose the store to open a store in New York City. Although they have one in long island not far from New York City but opening one in New York proper would be the biggest prize of them all. Why it is that labor unions and store owners are oppose to it. Although I am sure these two groups do buy their stuff from the store whenever they happen to be in the neighborhood where they are located.

The labor unions have problems with the store practices of non union membership and low pay and the shop owners would have a problem with low prices and being shut out of their store due to the enormous buying power of the store. Although I can understand the shop owners that indeed to due to enormous purchasing power, the store would be able to command lower prices and offer the same to the customers, but is it not what is called “economies of scale”. The more you buy, the less you have to pay per unit. Although some shop owners may close their doors but still some will thrive with innovative means to attractive customers.

No comments:

Post a Comment