The Wal-Mart Effect - Charles Fishman

Non-Fiction
$10.20 from Amazon.com (Not for sale at Wal-Mart retail outfits...)

Super Nerdy Distinction Award: Gilbert Lowell

Buy it if: You want to read one of the most fascinating books about corporate control of the global economy ever written

Don’t Buy it if: You’re an addicted Wal-Mart shopper who doesn’t want to know about the evil ways they keep those prices down…

There is an evil empire out there, and it was founded by Sam Walton. Whether you’re a Wal-Mart hater or an addicted shopper, there’s no denying the chain’s ubiquitous presence in America. My own town of York has two Wal-Mart Supercenters, one for each side of town! But how did this little midwestern discount store expand to the corporate monolith it is today? How pervasive is its influence when it comes to the economy? And how can they sell things so cheaply and still survive?

Charles Fishman tackles these questions and more in his superb book, The Wal-Mart Effect. 259 pages hardly seems enough to cover a corporation’s impact on the global economy while including a variety of case studies and well-trimmed statistics, but Fishman has no wasted words. Start to finish every sentence is a fascinating insight into the (very disturbing) depth to which Wal-Mart shapes the scales and breadth of worldwide commodities.

Of course, it’s one thing to point to statistics, declining trends and regression lines and use them to illustrate the obvious: Wal-Mart’s insistence on razor-thin margins trickles down through nearly every commercial enterprise in the world, from trucking to salmon farming. But the author’s brilliant incorporation of specific products and cases prevents the book from veering into the abstract. Two of the most memorable examples are the ‘Makin’ Bacon’ bacon microwave tray and Snapper lawnmowers. The former maintains a commercial relationship with the super chain and offers insight into the meeting and marketing process that occurs at Wal-Mart headquarters, while the latter is used an example of a company that could no longer juxtapose Wal-Mart’s insistence on lower prices with its own quality standards and thus had ceased appearing on the stores’ shelves.

Throughout the book, insights from Wal-Mart and manufacturer principles are used to bring depth to what could have been a very dry take on finances, economics and your basic supply and demand. Instead, we’re clued in to what makes Wal-Mart so different. After all, Target has nearly the same products at nearly the same prices, but Wal-Mart’s are ALWAYS lower. Why? And does it make a difference? Fishman posits that it certainly does and cites examples to prove this. (Wal-Mart’s corporate power being the most obvious one.) But what’s even more fascinating is the trickle down effect that comes from the policies of a company as massive as Wal-Mart - who’s trucking fleet is actually larger than that of the US government… It’s this study of the company’s effect on the world at large that is the main theme of The Wal-Mart Effect and it’s chilling to say the least. Big Brother may not be here yet, but if he comes, it’s a near certainty he’ll be arriving via a ‘Low Price Guarantee.’

As you know, I am a sucker for corporate profiles, but this one transcends the normal nerd-quotient and should suck in even you mainstreamers. It’s a glimpse into the brain of the monster in your backyard. (Or, in the case of the my town, the TWO ‘super’ monsters in my backyard.) You won’t ever look at the that massively blank storefront – or even the kindly old greeter – the same way again. Whether it’s with fear or loathing, The Wal-Mart Effect will forever change you discount retail perspective…