Walmarting
Encyclopedia
Walmarting is a neologism referring to U.S. discount department store Walmart with three meanings.
over Wal-Mart
's business
practices, which effectively apply optimization concepts from logistics
, purchasing and finance
to achieve and maintain low prices..
More generally, "Walmarting" refers to the spread of Wal-Mart's business model to other big-box retailer
s throughout the American economy, and the national or global implications of that proliferation.
The Wal-Mart business model includes: marketing to a broad "family" demographic that includes rural as well as urban, ethnic minorities as well as mainstream, people without a higher-level education, lower- or working-class consumers, as well as the middle-class; one-stop shopping based on a very large selection of goods and services; the use of intense price-competition and high-technology inventory management to stimulate and satisfy end-user demand; extreme economies of scale based on big-box delivery of consumables; aggressive supply-chain management that requires producers to reduce their costs significantly to find an outlet for their goods; employment of store workers for low wages, few benefits, and little job security to reduce overhead.
Critics have claimed that the domestic impact of Walmarting is to force local businesses into bankruptcy because they are unable to compete with Wal-Mart's "low, low prices", and to reduce the standard of living for local workers who lose their jobs, then must accept work at Wal-Mart levels of compensation. Similarly, it is argued by some critics that the international impact of Walmarting is to force American suppliers to rely on low-wage foreign producers for goods, leading in turn to an unfavorable national balance of trade and contributing to the growth of the American temporary and low-wage employment sector.
In response, Wal-Mart proponents point out consumer monies saved by purchasing lower-cost goods can then be diverted elsewhere in the economy to create jobs. Supporters of Wal-Mart have also noted that retail-driven price competition rationalizes the economy and eliminates wasteful deployment of capital and labor. Wal-Mart advocates particularly emphasize the democratic values inherent in providing a store where all Americans can afford to shop.
Walmarting differs both from "Disneyfication
" and "McDonaldization
", though there is a strong family resemblance. "Disneyfication" and "McDonaldization" emphasize the "fun" of theme park attractions and fast food dining, while Walmarting markets itself mainly upon shopping for savings. "Disneyfied" businesses embellish a particular theme as imagined history, while "McDonaldized" businesses rationalize a specific good or service; by contrast, "Walmarting" plays upon a single aspect of shopping – getting a bargain – and applies it across the board to a broad range of goods and services available in its "super-stores".
The "Walmarting" concept has been applied in various industries. The external links below cite examples of its usage for the first two definitions.
- The first use is similar to the concept of globalizationGlobalizationGlobalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...
and is used pejoratively by critics and neutrally by businesses seeking to emulate Wal-Mart's success.
- The second, pejorative, use refers to the homogenization of the retail sector because of those practices.
- The third, neutral, use refers to the act of shopping at Wal-Mart.
Background
The term "Walmarting" derives from debateover Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
's business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
practices, which effectively apply optimization concepts from logistics
Logistics
Logistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and...
, purchasing and finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
to achieve and maintain low prices..
More generally, "Walmarting" refers to the spread of Wal-Mart's business model to other big-box retailer
Big-box store
A big-box store is a physically large retail establishment, usually part of a chain. The term sometimes also refers, by extension, to the company that operates the store...
s throughout the American economy, and the national or global implications of that proliferation.
The Wal-Mart business model includes: marketing to a broad "family" demographic that includes rural as well as urban, ethnic minorities as well as mainstream, people without a higher-level education, lower- or working-class consumers, as well as the middle-class; one-stop shopping based on a very large selection of goods and services; the use of intense price-competition and high-technology inventory management to stimulate and satisfy end-user demand; extreme economies of scale based on big-box delivery of consumables; aggressive supply-chain management that requires producers to reduce their costs significantly to find an outlet for their goods; employment of store workers for low wages, few benefits, and little job security to reduce overhead.
Critics have claimed that the domestic impact of Walmarting is to force local businesses into bankruptcy because they are unable to compete with Wal-Mart's "low, low prices", and to reduce the standard of living for local workers who lose their jobs, then must accept work at Wal-Mart levels of compensation. Similarly, it is argued by some critics that the international impact of Walmarting is to force American suppliers to rely on low-wage foreign producers for goods, leading in turn to an unfavorable national balance of trade and contributing to the growth of the American temporary and low-wage employment sector.
In response, Wal-Mart proponents point out consumer monies saved by purchasing lower-cost goods can then be diverted elsewhere in the economy to create jobs. Supporters of Wal-Mart have also noted that retail-driven price competition rationalizes the economy and eliminates wasteful deployment of capital and labor. Wal-Mart advocates particularly emphasize the democratic values inherent in providing a store where all Americans can afford to shop.
Walmarting differs both from "Disneyfication
Disneyfication
Disneyfication is a term which describes the transformation of something, usually society at large, to resemble The Walt Disney Company's theme parks. The latter term appears in Sharon Zukin's book, The Cultures of Cities , and was popularized by Alan Bryman in a 2004 book, The Disneyization of...
" and "McDonaldization
McDonaldization
McDonaldization is a term used by sociologist George Ritzer in his book The McDonaldization of Society . He explains it occurs when a culture possesses the characteristics of a fast-food restaurant. McDonaldization is a reconceptualization of rationalization, or moving from traditional to rational...
", though there is a strong family resemblance. "Disneyfication" and "McDonaldization" emphasize the "fun" of theme park attractions and fast food dining, while Walmarting markets itself mainly upon shopping for savings. "Disneyfied" businesses embellish a particular theme as imagined history, while "McDonaldized" businesses rationalize a specific good or service; by contrast, "Walmarting" plays upon a single aspect of shopping – getting a bargain – and applies it across the board to a broad range of goods and services available in its "super-stores".
The "Walmarting" concept has been applied in various industries. The external links below cite examples of its usage for the first two definitions.
Outside the U.S.
India has experienced a similar phenomenon, with significant negative ramifications for its economy.See also
- Big box store
- Category killerCategory killerCategory killer is a term used in marketing and strategic management to describe a product, service, brand, or company that has such a distinct sustainable competitive advantage that competing firms find it almost impossible to operate profitably in that industry...
- CocacolonizationCocacolonizationCocacolonization is a term that refers to globalization or cultural colonization. It is a portmanteau of the name of the multinational soft drink maker Coca-Cola and the word colonization....
- Criticism of Wal-MartCriticism of Wal-MartWal-Mart has been subject to criticism by various groups and individuals. Among these are some labor unions, community groups, grassroots organizations, religious organizations, environmental groups and Wal-Mart customers. They have protested against Wal-Mart, the company's policies and business...
- Wake Up Wal-MartWake Up Wal-MartWake Up Wal-Mart is a campaign group founded by United Food and Commercial Workers Union. It is based in Washington, D.C. and is often critical of the business practices of Walmart, the world’s largest retailer, and the largest private employer in the United States...
- Whirl-MartWhirl-MartWhirl-Mart is a culture jamming ritual aimed at retail superstores and described by participants as "art and action."An event consists of a group of supposed shoppers who congregate at a large superstore and slowly push empty shopping carts silently through store aisles...