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NewsFriday, October 12, 2007 4:07 PM CDT
Wal-Mart defends low-cost imports as serving customers
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ROGERS, Ark. -- Chief Executive Lee Scott defended Wal-Mart's reliance on low-cost imports Wednesday against what he called emerging economic nationalism.

Scott told a retailing conference he would like to stock more American-made goods but that Wal-Mart's business model is based on offering the lowest price for consumers who cannot afford to spend more.

Scott was answering a question from an audience member who wanted to know if Wal-Mart would buy more U.S.-made products to reduce the greenhouse gas emissions of global transport and to bring manufacturing jobs back from places like China.

``Right now, the way it works, our model is `We sell for less.' If we put products out there and we have to sell them for more because our competitors are sourcing more efficiently and more effectively for the same quality of product, our model doesn't work. We cannot be at a price disadvantage,'' Scott said.

``Lest anybody forget, 20 percent of Wal-Mart's customers don't have a checking account and they do not have the economic luxury of making a broader social statement,'' he told a conference of the Center for Retailing Excellence, part of the University of Arkansas' Sam M. Walton Business College.

Wal-Mart Stores Inc., which imported $18 billion in goods from China in 2004, has been a lightening rod for critics who say overseas buying by retailers has cost U.S. manufacturing jobs. Wal-Mart has said it finds the lowest prices for its customers and creates jobs at its stores.

Scott said Wal-Mart is willing to pay as much as 5 percent to 10 percent more than a foreign-source price for some products made in America, but that many goods will never be made here again because the economy has become global.

``Even with the economic nationalism that's emerging today, the anti-China kind of thing, much of the product, if it moves out of China because of tariffs, is going to move to Indonesia or Vietnam or Cambodia,'' Scott said.

``Those products where there's no more value added by expertise in the work force, those products are going to move around the world, and they have for years.''

Scott said he expects ``economic nationalism'' to remain a hot button issue in U.S. politics because of presidential and congressional elections next year.

Take a look
A shopper at a Walmart in North Fayette, Pa., loads her purchases into her car on in this Jan 4, 2007 file photo. Wal-Mart Stores Inc., the world's largest retailer, on Thursday, Oct. 11, 2007 increased its third-quarter earnings guidance, saying improved margins and lower expenses will help profits, even though sales are lackluster. (AP Photo/Gene J. Puskar, file)
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Reader comments on this story - 40 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

Anti Import Shopper wrote on Oct 24, 2007 7:04 PM:

" Any company that puts profits before consumer safety needs to be banned by consumers! Sam Walton founded the company with his littel store in Arkansas and built the empire based on "US MADE' products. Now look it! All imports! Wal-Mart aren't the only ones whose business is profitable by imports so it's up to consumers to ban all imports. I'm trying this and it's very difficult to go into any store and look for 'American' made products. That is the scary part! "

no favors wrote on Oct 13, 2007 6:46 AM:

" Walmart is selling stuff as cheap as it can for ONE reason - to make them money! I do shop there, but for less and less every time I go in. I think that Walmart acts like the consumer is stupid, which in many cases is true. "

JD to Cynic wrote on Oct 12, 2007 11:13 PM:

" You assume I am wealthy, and you would be wrong in that. I just value my dollar enough to do without on some of my wants, to be able to afford quality items for my needs. What is the point of paying 1/2 the price of something, when it will only last you 1/4 the time a quality product would last? I do not shop at Walmart, not because I have the money to shop elsewhere, but because Walmart products are subpar, and if I am going to buy something, I will save the money to buy a quality product instead of buying a subpar item to satisfy my instant gratification. "

Cynic wrote on Oct 12, 2007 4:34 PM:

" JD you read a lot into post that is not there. I did not say there was no other choice. You made a blanket statement about all Walmart shoppers. I pointed out that everyone is not as rich as you. They do not have a lot of choice on where to shop. Many are on budgets and have to make thier money go as far as possiable. These are the people that you are attacking because they do not shop where you do. They shop where they can aford. Come try life with the commen people. Get out of your Ivory Tower before you make statements like you did. I am sorry if I hurt your feelings, truth hurts. "

To JD wrote on Oct 12, 2007 3:51 PM:

" Thank you for the clarification of your first post. I misunderstood. You make a good point about putting your money where your mouth is. Most people who I know who don't like Wal-Mart don't shop there. That's fine. I just think there are lots more people who do like it and that's why it's such a popular place. "

JD is right wrote on Oct 12, 2007 3:29 PM:

" I admit- I hate Wal-Mart from many perspectives and I think time and again about never pulling into their lot again... but you know what? After I pay rent and utilities? Just about every buck I make after that goes to that friggin' place! Why? Because I now and then comparison shop and I can fill my cart there for 2/3 of what Kroger, Jewel or Schnuck's ask me to pay for the very same stuff... Damn that Sam Walton! I could ring his neck! But, as JD says, I can (and should) hault NOW! Will I? Likely not... My own damned fault. "

JD wrote on Oct 12, 2007 2:19 PM:

" I never assumed that anyone agreed with me. I am just tired of the masses whining about things they could change, but refuse to because it would inconvenience them. Personally, I have no problem with Walmart, it's practices, or the way the employees get treated. Granted, I do not shop there because I find the products substandard, but if other do, more power to them. My posts are just aimed to point out that whining about the company means nothing if they continue to support the company. Too many condemn Walmart, wanting something to be done about it, as they spend their money there. It shows no personal responsibility. "

To JD wrote on Oct 12, 2007 1:04 PM:

" Why are you assuming that the masses agree with you? Maybe the masses have spoken and that's why Wal-Mart is such a successful company. The masses do have power, they just don't always agree with your point of view. "

Imports/Exports wrote on Oct 12, 2007 12:50 PM:

" The US imports a lot of junk. We also export a lot of stuff. Should other countries not buy our stuff? And what's wrong with stuff from China? I'm not sure I follow. Why shouldn't I shop at Wal-Mart? Because they sell stuff other than only what's made in the USA? Does any store? Maybe I shouldn't shop there because they are a chain. Isn't Meijer a huge chain too? Isn't Target? and K-Mart? And to Gramma, Wal-Mart sells the same brand names as any other store, so I'm not sure how you can attack the quality of their products. I guess I don't see the same problems finding employment in the US as you do. If it was a problem, then maybe we could look at securing our borders before refusing to import stuff made in other countries. We will always import and export. "

Just A Guy wrote on Oct 12, 2007 8:05 AM:

" To: JUST SAY NO! (6:40pm). No, Meijer isn't better, it is the same. There is no difference between Wal-Mart and Meijer except the name on the wall and the color of the employees uniforms. Same stuff, same problems. "

I agree.... wrote on Oct 12, 2007 7:51 AM:

" with the comment about the new layout of the Normal Walmart. It is VERY difficult to find things now. Since the isles now go every which direction, it is now impossible to just go up and down an isle to find things. I used to go to Walmart all of the time, but now since they've changed everything around, I don't go anymore. It takes WAY too long to find things and, as always, they never have enough checklanes open for the after-work crowd. I would use the self-service lanes if only they would allow for more than 20 items. "

Please tell me then wrote on Oct 12, 2007 6:26 AM:

" where am I supposed to shop? "

5&dime wrote on Oct 11, 2007 11:12 PM:

" Wal-mart decides what products you need and what products are manufactured. Fat lazy Americans flock to this concept because it is easier for them, not caring a whit what it does to the USA or the people that work here. We are chumps for even shopping there. "

RE:"Howard cosell wrote on Oct 11, 2007 10:14 PM:" wrote on Oct 11, 2007 11:10 PM:

" I agree that when you combine the corp greed of Wal-Mart with the consumer greed of Americans you end up with a force that cannot be stopped. We are the cause of our own DOOM. But then, looking back on all cultures, I guess that's how it's always been, huh? I challenge anyone and everyone to find a way to NEVER GIVE ANOTHER DOLLAR TO THE WALTON FAMILY AGAIN- EVER. "

Good Old Days wrote on Oct 11, 2007 10:24 PM:

" In addition to huge tourism: What you described sounds just how my parents lived their lives. They didn't spend lavishly... lived in an simple house... and saved for what they bought. NOT on credit. Where did I go wrong???? LOL "

I hate Wal Mart......... wrote on Oct 11, 2007 10:22 PM:

" and have not shopped at one since last Christmas except to buy CANNED goods and that is ALL I buy there. Why? Because where I live, Wal Mart 'remodelled' and since they did, prices here are sky high. The quality has gone down as far as the brands they now carry. I can go to other stores and save money. (I live in Oklahoma.) My daughter and her family have not shopped at Wal Mart or even driven into their parking lot for almost three years. "

Howard cosell wrote on Oct 11, 2007 10:14 PM:

" Wal-Mart encourages their suppliers to manufacture in foreign countries where labor is cheaper and enviromental standards are less. In fact they will guide them to where it can be done. Yes Wal-Mart tries to sell at the lowest price possible, but do not believe they are doing it for the consumer, it's cooperate greed and the only way they know how to do business. To change their ways now would be financial suicide. So they are just figuring out ways to get the job done the way they do it, no matter what the cost to society or enviroment.. A good read is " The Wal-Mart Effect" . Very enlightening. "

to The Oval Dobber wrote on Oct 11, 2007 10:04 PM:

" Bu...bu...bu...bu... Hillary? What are you going to say when the doom and gloom doesn't happen and we have another 8 years of Middle Class boom like under Bill? I hope and pray for another sex scandal. It was so entertaining seeing the Republicans froath at the mouth. Funny how they weren't calling for blood when Larry "Wide Stance" Craig, Mark "Love them pages" Foley, and Ted "Gay meth user" Haggardy were in the news. "

I worked in a region with huge tourism for many years. wrote on Oct 11, 2007 8:11 PM:

" Many Europeans traveled to this region and once I was at a Subway inside a Wal-Mart and met a nice, 50-ish Swiss couple. After talking a bit, they apologized for possibly sounding rude and offending me- but they wished to know what all the fuss about Wal-Mart was. They didn't understand the huge popularity. They said they found the store to be substandard, low quality and the products to be shamefully bottom-of-the-barrel. They offered an interesting perspective. They shared that where they are from , there is not a "Buy whatever you can afford now- and upgrade later," attitude. It appears they often go without something for years- and then once the $$$ is saved, they then buy the very best quality possible (watches, cameras, tv's, clothes, cars). They also buy with "lifetime use" in mind. Nothing they purchase is done so with a short life, or a throw-away, disposable mentality. This seems to bring many positive results from less polution and landfills, to fewer discount stores and a far better quality of life. One doesn't even find disposable paper products there. Plus, a less materialistic society. Very interesting... "

I Will Buy wrote on Oct 11, 2007 8:06 PM:

" from just about any country EXCEPT China. I will pay more for Made in USA, but then, I have a checking account and a savings account and my own SSN. But all too often, I am not given the choice. Greed is the culprit in the middle man of sales. I am especially disgusted that we are not allowed to know where our food comes from. Instead they say: "Distributed by:XYZ, Manitoba, Canada or NYC, NY. Give me the choice to determine what I eat and feed my family. "

RE:The Oval Dobber wrote on Oct 11, 2007 8:00 PM:

" DITTO!!!! "

BILLY BOB wrote on Oct 11, 2007 7:59 PM:

" Simple economics!!!! Buy low ...sell low... get all the customers and make up for it in volume. Thank Wal-Mart for forcing the prices on just about every consumer item you want down. Yes most Americans want cheaper prices for computers, TVs, MP3 players, toys, bicycles, cameras, cribs, clothing, food, shoes, tires, and you name it. We all have more because of Wal-Mart. Manufacturers have moved operations to foreign countries to up the profit for investors and share holders. Not Wal-Mart. Consumers have rendered their opinions with their shopping dollars. "

orval wrote on Oct 11, 2007 7:44 PM:

" if it has china written on it leave it in the store and when their shelves are full of products no one will buy maybe they will change back to the old ways they had where it was made in america we need to wake up people or none of us will have a job in OUR COUNTRY "

I agree with "I parked my '01 GrandAm in a Wal-Mart lot wrote on Oct 11, 2007 5:44 PM:" wrote on Oct 11, 2007 6:59 PM:

" If this trend continues there's a very real possibility that soon in B/N all the "good neighbors" in our community will be replaced with "geckos". However, likely only about 1/4 of the neighbors will be replaced when their outfit ends up having to leave town with their expensive, high-prpcied tails tucked between their legs, because I hear Geiko gets the job done effectively with only 25% of the employees that SF does, plus they actually require 8 hours of honest, effective work out of their people. That'll do tons of things to our community- among them MANY empty, unsellable homes around town. The upside? likely a far friendlier, less-stuffy community. "

The Oval Dobber wrote on Oct 11, 2007 6:54 PM:

" If Mrs. Clinton wins, our children might as well keep playing with all the lead painted toys, because many will die in terrorists attacks. Maybe the Bush haters will realize they are idiots when their family doesn't come home. Rectal Deflation of the Liberals spells Death for the USA and our way of life. As far as Government Healthcare, I hope you like the Canadian 45% to 55% Income tax. That will almost be funny when we have to go to Central America for operations like Canadians come here. Do you think Hilary will wait in line? WTF the STFU. Thanks for killing the last democracy you Liberal Fools! Sam Walmart tried to buy American even at a higher price. He dies, her come lead paint and tools that break in your hands. "

JD to cynic wrote on Oct 11, 2007 6:46 PM:

" You prove my point. Instead of a person buckling down to prove their point, and possibly doing without some things, you attempt to justify the shopping as 'there is no other choice'. There is always an alternative. Nothing sold at Walmart is unique to the store. Granted, it may be more expensive elsewhere, and thus require budgeting, or even forgoing some of the non-vital things, but there is always a choice.. People existed before Walmart, and on fixed incomes too, so your excuse is just that, an excuse to justify shopping at Walmart while trying to disavow responsibility of the effect that shopping there has. "

JUST SAY NO!!!!!!! wrote on Oct 11, 2007 6:40 PM:

" Just say no to Wal-Mart. Meijer is much much better. "

I don't wrote on Oct 11, 2007 6:18 PM:

" park my vehicle in a DullMart parking lot. I agree, the more people who shop there the more jobs leave this country. Krist it's getting where anything you pick up anymore is made in China or Mexico. I buy American made products when I can find them, who needs DullMart? "

Hey Gramma wrote on Oct 11, 2007 6:08 PM:

" Guess what? Your opinion is actually factual. They have driven stores out of business. Too bad that is a part of normal economics. Yes they were orginally american made products, but then again importing items was not as cost efficient then as today and business in general has changed dramatically. Wake up sweetheart, you are in the 21st century and in order to survive, one must adapt. Your entitled to your own opinion, but questioning the thoughts of normal citizens CHOOSING to shop there is more childish than anything. "

I parked my '01 GrandAm in a Wal-Mart lot wrote on Oct 11, 2007 5:44 PM:

" and when I came back out there was a $60,000.00 Navigator on one side and a big, beautiful souped-up extended-cab mega-truck on the other. Not only poor people with bad credit and few options shop at Wally-world. Most of us grumble at the supposed low-paying jobs Wal-Mart provides and the few- if any benefits. We'd like to see the folks they hire treated better and provided for more... In some aspects it seems their staffs are almost endentured servants. Yet we still ALL shop there to save our own pocketbook from over-pay elsewhere. What are we gonna do when the customers of the companies WE work for start going elsewhere because competitors can offer a similar product for 1/2 or 2/3 of the price? In a generation or two WE'RE gonna be the ones with no decent pay, no insurance coverage, and pulling two FT jobs just to make ends meet. Save now- PAY LATER! The only ones more greedy than the Wal-Mart Corp is the Wal-Mart customer. "

Gramma wrote on Oct 11, 2007 5:38 PM:

" I do not and I will not shop a Wal-mart store any where in this United States! That store in my opion, has driven many other stores to close their doors. It has helped to drive jobs overseas and hard working people out of work. Have any of the patrons of this lovely store ever thought about that? I don't think so. Yes, the price may be lower for some items, but are they actually worth it in the end? Cheap clothes, cheap appliances,cheap junky furniture. Is this what you want when you spend your hard earned dollars? Not me. I'll spend my hard earned dollars on DURABLE GOODS that will actually last. And I agree with "Pull my other leg", originally it was AMERICAN MADE PRODUTS sold at this dump. sstates.. "

To Digs Deeper wrote on Oct 11, 2007 5:34 PM:

" So what position do you hold at Wal Mart? For someone to know so much about their buying you must be pretty high up on the totem pole. Let me guess, you don't work there and have no idea what you are talking about. "

To Pull My Leg wrote on Oct 11, 2007 5:33 PM:

" You need to realize that times are different than when Wal Mart was originally started. Sam Walton didn't have as much access to imports as they do now. Face it, this is business. In order for businesses to survive and grow, they must also adapt to the times. Tell me, what store out there currently sells ONLY american made products and carries nothing else produced from a foreign company. "

Clinton Mom wrote on Oct 11, 2007 5:01 PM:

" I go where I can get the best price for what I want. Sometimes that WalMart sometimes Kohl's or Penneys. Many times I will get my groceries there because of the price and selection. If I want good meat in B/N i go Schnucks and in Clinton I go to IGA. It would not be "greener" for Walmart to stop selling Chinese goods. I buy American when I can and try to stay away from made in China but recent toy recalls have shown that is not always possible "

Cynic wrote on Oct 11, 2007 4:54 PM:

" JD I am glad that you have enough money to buy your conscience. But everyone does not have that luxury. Some people have to buy what they can aford, not what they want. Try to get by on a fixed income while your heating bill go up. Do not put these people down. Try walking in thier shoes. "

i think that... wrote on Oct 11, 2007 4:13 PM:

" walmart is a great store and I have shopped there for years but I am not overly exicted about the redo of their store. While it is very nice looking it is very hard finding stuff and what you do find there is not a lot of. Some of the stuff that i used to buy form them you either can't find it or they don 't sell it anymore. I have also noticed that some of their prices are not cheaper than other stores and yes I know they will match it but who wants to stand in line with a newspaper showing them other store prices? I don't. Plus, some of their workers are not very friendly or seem to miss guide you in the store. I had four people tell me where one product was only to finally find it myself while walking around the new maze. "

Digs Deeper wrote on Oct 11, 2007 3:55 PM:

" They can't say it is cheaper to buy products from other nations and import them when they do not even try to but American products in the first place. "

Pull my other leg, it plays Jingle Bells. wrote on Oct 11, 2007 3:54 PM:

" Sam Walton built Walmart by offering low prices, on American made goods. It used to be one of his advertising slogans, that he was proud to sell Made in the USA. I remember a piece on 60 minutes years ago, about how there was a kind of chair he wanted to sell. No one in the USA made it. So he helped a guy start a factory here in the USA to manufacture the chairs, so he could sell them in Walmart. CEO Lee Scott is ignoring Walmarts corporate history, when he says that Walmart can't sell American goods at a low price. Tell me Lee, if it's that hard to do, how could a simple guy from Arkansas build your company into an economic powerhouse doing just that? "

God... wrote on Oct 11, 2007 3:18 PM:

" people. Get over it. If it is cheaper, you're gonna buy it. People will always go to Wal-Mart. "

JD wrote on Oct 11, 2007 3:18 PM:

" The problem is not that Walmart buys stuff from China. The problem is that the masses will not take personal responsibility for their shopping habits. The consumer dictate what Walmart can and can not sell by voting with their dollars. The consumer does not want to be inconvenienced though, and continually just whines about the effect Walmart has while still spending their money there. The consumer wants its cake and to eat it too, and expects either the government to step up and force Walmart to change, or Walmart to change because of the whining. For all the power American consumers have, they just do not want to use it if it means negative effects for them. "

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