Wal-Mart did not change the way that Americans shop for goods; there were discount stores such as Kmart that preceded Wal-Mart. Wal-Mart, however, took a different approach in that it established stores in rural areas that were not served by nationwide discounters. In this way, it was able to use its size to its advantage by offering lower prices than other retailers in these remote areas. Eventually, Wal-Mart expanded into suburban and urban settings, bringing low prices and competing more intensely with other discounters. As this expansion took place, the company began encountering negative publicity about its operations. People complain that Wal-Mart puts smaller retailers out of business and that it does not pay its employees well. However, Wal-Mart brings jobs to the communities that might not otherwise exist, and provides additional community benefits, as well. Those who believe that Wal-Mart is a positive force in communities must now take a stand and fight the negative publicity that Wal-Mart has generated. Since some communities have taken legal action to prevent Wal-Mart from entering, people who support Wal-Mart should become active in local politics to prevent this from happening in the future.
Wal-Mart is able to keep its prices low because it is so large and because its business is critical to its suppliers. This gives it considerable bargaining power when negotiating prices and delivery schedules. In most cases, it can be assumed that Wal-Mart receives the most favorable terms of any customer from any supplier.
Low prices are good for the communities in which Wal-Mart participates. Consumers are able to purchase goods for less than if Wal-Mart were not in the area, and this gives the consumer more money to spend on other items, or to save. Certainly there are few who would argue that higher prices are good for a local economy.
Wal-Mart also provides jobs in the communities where
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