Frontline

• Explores America’s obsession with

discount stores despite massive job loss
• 3400 Wal-Mart stores
• 100 million people shop at Wal-Mart stores
each week
• Sales in 2003 topped $256 billion
 Global Procurement
Center
• Based in Shenzhen, China
• Third busiest port in the world
• Employs several hundred
• 80% of Wal-Mart’s 6000 global suppliers
are located in China
• Wal-Mart & China are a joint venture
Wal-Mart is a Discount Store
• Cheap labor because the jobs are in China
• China employees make 50 cents a hour, $100 a
month
• Manufacturers a wide array of consumer goods
• These goods, from clothing to electronics, can
be bought at low prices
 Offshore
Global Center: China
• Wal-Mart imports $15 to $30 billion a year
of China’s goods
 Result
• Alteration in United States’ Economy
 How?
• Coercing the eruption of information
technology & global economy
• Operates the largest satellite system in the
world
• Powerful retailers manipulate production of
goods to offshore
 How?
• Wal-Mart has mastered the process of
production, movement of goods,
warehousing of goods, ensuring goods
arrives on time at the right place, and for a
cheap price
• Developed in-house brands
• Gain of supply-chain efficiencies by
working directly with factories
• More profit for Wal-Mart
 How does Wal-Mart know what
consumers want?
• Barcodes: Reveals everything about a
product
• Information about how often the barcodes
are purchased are relayed to the
manufactures from Wal-Mart
• Hence, the manufacturers are dependent
on Wal-Mart for demand information
 What does this mean?
• The manufacturer becomes dependent
and subservient to the retailer, Wal-Mart
 Wal-Mart has created a Monopsy
• Major buyers for groceries & toys
• Controls 38% of the market for several
goods
• Manufacturers are forced to sell to them at
low prices
 Why?
• Wal-Mart wants to provide
consumers with quality
products & low prices
 Why Not?
• Americans are consumers and workers
• Americans may receive discounts for
quality goods but loose jobs in the process
• Not only effects U.S. but other countries
as well
 Wal-Mart Model of
Employment
• Low-wages
• Low benefits
• Low skill
• Rapid job turnover
 Interview With CEO H. Lee Scott
• Employee discussion
• Exploitation vs. opportunities
 Opinions of those who are
proponents of opening a Wal-Mart
in Ashland, VA
Those who disagree with opening a
Wal-Mart in Ashland
Sprawl Busters: Helping Average
Citizens Discourage Unwanted
Development