The Wal-Mart Effect Chapter 6 Brian Dorward. What information did Emek Basker need in order to analyze the impact of Wal-Mart stores?

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Presentation transcript:

The Wal-Mart Effect Chapter 6 Brian Dorward

What information did Emek Basker need in order to analyze the impact of Wal-Mart stores?

A list of stores, by numbers, and the date they opened.

In order to confirm that Wal-Mart does lower prices, Basker collected data on specific products. Name two of those products.

Bayer aspirin, Winston cigarettes, Cascade dishwasher powder, Kleenex, Johnson’s baby shampoo, Alberto V05, Coke, Fruit of the Loom briefs

According to Basker, Wal-Mart’s impact on prices is greater where?

In smaller cities.

Taking collateral damage into account, how many new jobs does a regular Wal-Mart create after being in business for five years?

30

The Consumer Price Index (CPI) can be overstated by what percentage each year?

15%

Why do the people at the Bureau of Labor Statistics (BLS) ignore Wal- Mart in calculating the Consumer Price Index (CPI)?

They assume that any difference in the cost of an item is owed to a lesser-quality shopping and service experience at Wal-Mart.

What were Ken Stone’s two “rules of thumb” about the winner and losers when Wal-Mart arrives in a town?

Rule 1: Merchants selling goods or services different from what Wal-Mart sells become natural beneficiaries. Rule 2: Merchants selling the same goods as Wal-Mart are in jeopardy.

How did Vishal P. Singh and his colleagues study the effects of Wal- Mart on supermarkets?

They collected data gathered from “loyalty” cards issued to supermarket customers.

The majority of loses experienced by supermarkets result from what cause?

Fewer store visits (this had little impact on basket size).

What is Wal-Mart’s effect on its suppliers according to Gib Carey’s studies?

As Wal-Mart consumes a greater chunk of a company’s sales, it simultaneously offers a smaller slice of profitability.

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