So, What's Wal-Mart's Problem, Now?

So, What's Wal-Marts Problem, now? I don't know, because I can't see it, though obviously Newsweek does.

July 31, 2007 - Wal-Mart prides itself on cutting costs at home and abroad, and its Mexican operations are no exception. That approach has helped the Arkansas-based retail giant set a track record of spectacular success in the 16 years since it entered Mexico as a partner of the country’s then-leading retail-store chain. But some of the company’s practices have aroused concern among some officials and nongovernmental organizations (NGOs) that Wal-Mart is taking advantage of local customs to pinch pennies at a time when its Mexican operations have never been more profitable.

Bottom-line - Wal-Mart partnered with an existing Mexican chain which employed what is apparently a common practice in Mexico - volunteer teenage baggers that work for tips only. Because Wal-Mart has become so large in Mexico, it now apparently provides the bulk of pocket change for some number of teenage Mexicans who volunteer to get it. Not good enough says Newsweek and some pols. How dare they be successful and embrace existing practices within the culture.

There are too many poor people in Mexico, the article suggests. The answer? Raise prices so they can pay the baggers an actual wage. Has anyone asked the average consumer if they might not then prefer to bag their own groceries? Or has anyone stopped to ask why so many teens volunteer? And of course, they don't really suggest Wal-Mart should raise prices. If they had their way, Wal-Mart would do the right thing and simply give the stuff away.

But ... why do all the above when you can just blame it on Wal-Mart.

Comments

[Lala]

In France the supermarket cashiers sit on chairs,scan the items and collect the money. They do not pack the bags.
Same in Italy.

I suspect the policy is the same in Mexico. If Wal-Mart is forced to pay the baggers then they'll probably just bsn them from the stores.

[wardmd]

So let's see if I get this...

We're "racists" if we don't embrace everyone's cultures (HERE, in the United States) - or we have the audacity to expect people to speak English; but have a U.S. company DARE to "embrace" the customs of a foreign country (when they actually do business IN that foreign country), well, then they're EVIL.

Could it be that SOME people simply think it's WRONG for ANYONE to make a profit?

You know, if you don't like Wal-Mart, don't shop there. If enough people feel the same way, then they'll go out of business.

The problem, of course, is that people LIKE paying as little as possible for the things they buy (just as Wal-Mart likes paying as little as possible for the things they pay for [including labor costs]).