IT Employment

Poll: What if you were the CEO of Walmart?

Is Walmart good for the USA, or is it a net plus or an ultimate negative for quality of life in this country? In this blog, executive leadership coach John M McKee gives you a chance to vote on this issue.

More bad news for the United States -- Walmart's earnings rose 26% in Q4 2010.

Why, as a business and executive coach, would I say a healthy profit is bad? Especially when it comes to a company that seems to be helping so many low-income families by keeping prices low?

Here's why:

The world's largest retailer is now also one of the largest corporations in the world (bigger than Exxon Mobile, bigger than General Electric) with revenues of over $400 billion. That's more than the combined revenue of all its major competitors (like Target, Kohl's, and JCPenney and Safeway and Kroger supermarkets) in the United States. It operates in 15 countries.

As almost everyone knows by now, they grew so big because they offer great prices on essentials like clothing and food. And they're located in nearly every place a customer exists, even moving into urban big city areas over the past few years.

But now it's time to shake up the management ranks, adopt a new policy of corporate citizenship, and start acting like they really care about the long-term viability of this country.

Studies show that their singular focus on "the lowest price, always" is actually deepening the unemployment rates across the United States. This is due, most often, to Walmart's focus on overseas manufacturing where cheap labor and huge volumes make it impossible for local, even large, national manufacturers to compete.  Ultimately, good-paying jobs with large employers disappear as each U.S. manufacturer is forced to either close its doors or ship jobs overseas so that they can compete for Walmart's business. In reports going as far back as 2003, it's been shown that by continuing to import escalating amounts of its product mix (either directly or through U.S. suppliers) it is causing entire industries to go down in its wake.

Additionally they are often accused of dislocating local retail jobs when they arrive in a new market, being cheap with their employees, and participating in sex discrimination.

History shows that any industry that is dominated by one player is ultimately harmed. It's been the same in telecom, auto manufacturing, and countless other sectors. Something needs to change at the top of this organization. Walmart needs to start behaving like it cares about the United States as well as the core values of most advanced Western countries. Otherwise this country and others, including Canada, the UK, and Brazil, are going to see a continuing decay in living standards. That will cause erosion in the leadership of our educational facilities, and then other industries will no longer be able to recruit the best talent here.

Here's to your future...

John

What if you were given a chance to head this behemoth? How would you change the trajectory?

About

John M. McKee is the founder and CEO of BusinessSuccessCoach.net, an international consulting and coaching practice with subscribers in 43 countries. One of the founding senior executives of DIRECTV, his hands-on experience includes leading billion d...

53 comments
gkiefferjfk2
gkiefferjfk2

I would make some store policy changes... 1 - Introduce the old style K-Mart BLUE LIGHT SPECIAL with a little twist... 1a - Announce in the shopping ad for the week what 2 of the BLUE LIGHT SPECIALS would be and the times that they would have it & all stores would participate in the special. 1b - Repeat it for all the stores for one month to get the max buyers. AND also tell people that there will be OTHER UN-ANOUNCED BLUE LIGHT SPECIALS THROUGH-OUT THE DAY [starting at 9am to 9pm all 7 days] 2 - Put little funny SMILE CHARACTER ADS on YOU-TUBE, and other social web sites for people to look at and get the GREAT services & products firmly implanted in people's minds. [[One funny smile character i have in mind is --- happy smile characters are going throughout a store knocking down all the prices they see and also knocks down by $15.00 the COMPANY's SHARE PRICE [found in the back room near the bathroom & employee locker room] and the manager FIRES ALL THE SMILE HAPPY CHARACTERS UNTIL THEY MAKE AMENDS... So HOW DO THEY MAKE AMENDS? They gor around until they find the company's share price and put it UP by $25.00 which makes the manager so HAPPY [now he's smiling bigger than the HAPPY SMILE CHARACTERS he gives them a great bonus] BUT things like that to get the word out on [on all sorts of media] that Wal-Mart has SUPER GREAT PRICES & SERVICE... 3 - ALL EMPLOYEES will have a pay increases every 2 years of at least 2% [ONLY EXCEPTION IS DURING A MAJOR RECESSION WHICH MUST BE OBSERVED] 4 - When people get income reductions it will follow a formula that states TOP DOWN GETS HIT THE MOST & THE LITTLE PERSON [the one who cleans the bathrooms] GETS HIT THE LEAST. That way when the company has to observce recession pay cuts or any other emergency income cuts the little person gets hit less than the top personael who can afford a bigger pay cut. AND KEEPS MORAL FOR THE COMPANY STRONGER THAN ALL THE OTHERS WHO DO CUTS FROM BOTTOM UP = LITTLE PERSON GETS HIT MORE THAN THE TOP. 5 - ALL CHANGES MADE BY ME [the one day owner] CAN BE CHANGED BUT NOT BEFORE THE YEAR 2999 HAS EXPIRED EXCEPT FOR THE PAY INCREASE MAY GO UP & THE MONEY CUTS MAY GO UP [people getting financially hit for more income loss] WHICH MUST ALWAYS START AT THE TOP & WORK DOWN.

elamarjordan
elamarjordan

you will never find me in that position at wallmart, or any position for that matter. faaking (the correct spelling is not approved here) slave owners, among other things.

Groovyman
Groovyman

......without Walmart we wouldn't have peopleofwalmart.com

BlueCollarCritic
BlueCollarCritic

Does anyone really believe that Wal-Mart or any other corporation that has engaged in offshoring did not realize they would have a negative impact on the US economy by effectively relocating overseas so many manufacturing jobs? While Wal-mart may not have directly did this, they still pushed for it by buying from overseas cheap labor prison country???s like china. Wake up people and smell the gas before the canary dies because then it will be too late. Unless you are already rich and I mean millions to billions rich you know that you can't continuously borrow more money then you produce as our government has compliments of the Federal Reserve now can you continually push your sources of income (that being taxes from person employed in America) over seas and expect to be screwed. BTW - Don't expect a change in government from one of the 2 fake Political partys will make a difference either. Every time we through the current bums out be they the Democrats or the Republicans we see no real change just a different way to grow the government and get us further in debt. The Democrats do it via increased entitlements and the Republicans do it via increased corporate welfare and increased spending with the Industrial Military Complex.

jevans4949
jevans4949

Over here we have 4 or 5 major supermarket chains, of which the Wal-Mart subsidiary (ASDA) is probably the 2nd biggest. Of the 5 big boys, they are on average the cheapest, although they are now often undercut by some German budget chains, Aldi, Lidl and Netto. The main effect here has been that their buying power enables them to drive down prices in agriculture, so that small farmers are unable to make a living, and are often selling below cost. The main chain, Tesco, has in recent years been developing into the convenience store area - and in one smallish town cornered the market with 5 stores. Although I'm concerned about all this, it really does make sense to shop for the cheapest you can get. As far as "buy American [substitute nationality here]" is concerned, those old enough to remember the 1970's and 80's will recall that we went through the same thing with the Japanese - more productive and on lower wages than the then developed countries. They now pay comparable salaries to us, and are also in long-term recession, and long ago outsourced their manufacturing to other, poorer, East Asian countries. The problem with the Chinese is that they are far more numerous! IMO, the collapse of US / European manufacturing will only be remedied when the Chinese start pay their workers the same wages. The founder of the Dyson vacuum cleaner struggles to keep his design work in the UK, but stated several years ago that it is just not economically viable to manufacture here. And while ARM computers are a British company, they have never manufactured the chips themselves, but just license the design to others. In the early 90's I was working for a subsidiary of a pulishing company. One day we received a press release which basically said, we have sold all our titles in the North West to [our competitor], and they have sold all their titles in the North East to us. Remember, folks, capitalism isn't about competition, it's about monopoly.

loupattison
loupattison

I will not buy anything from Walmart unless I have to. [I once had to buy the green gunk you put in a flat tire there - no one else in the area sold it]. I heard last night that the real issue for Social Security is that less than 84% of total earnings are now taxed for SS, vs. a baseline assumption of 90%+ in the projections made 10 years ago, because the "fat cats" are earning a bigger share of the total earnings. SS cuts off at $106k per year, so as income gets more concentrated in the very rich (CEOs, Wall Street bankers, etc.), SS's share of the total goes down. So Walmart is not just contributing to making its customer base poorer, it is adding to the long term deficit. [Idly wondering how many CEOs shop in Walmart?]

watsonderekj
watsonderekj

Back in the day that Walmart started growing they used to proudly announce that "by buying this product you have helped employ 500 US workers in anytown usa". That was before Sam Walton passed the torch to his children. They have pressed for overseas manufacturing and closing down of many US based manufacturers. Although the Waltons are one of the richest families in the world they hardly share the wealth with any employees. If you are distrustful of Walmart and their practices watch the documentary: Walmart the high cost of low prices.

skyeenter
skyeenter

Wal-Mart's just-in-time-delivery biz model is based on the old order of cheap plentiful supplies of oil. As oil is a non reproducing, non sustainable commodity, just like all the mining based resources in the world, it's ability to continue will be highly impacted by availabliity. As Peak Oil becomes a reality companies such as Wal-Mart will be those most adversely affected.

Quasar Kid
Quasar Kid

The problem I have (along with millions of other citizens) is that life is a paycheck to paycheck struggle. I shop at Walmart because my dollar buys more, much more, than at your beloved Safeway, Kroger, or Target. Further, I resent people chastising me and demanding my family live on macaroni and cheese just so you can pontificate about what you think is best. When YOU are paying MY food bill then you can shop at Kroger. I am sticking with Walmart.

Slayer_
Slayer_

Its all Chinese garbage, forget the economy, they are filling our landfills. There needs to be a law that the garbage produced by a product needs to be buried in the originating country. After a few months, China will just be one big landfill and they can suffer the toxic consequences.

merlin66213
merlin66213

I'd like to point out that it was not that many years ago, prior to the founders death, that Walmart was a Buy American First company. There sales were already strong then and were beating the likes of Sears and Kmart in growth. This China mentality is killing jobs here and in many other smaller countries.

Professor8
Professor8

"they carry name brand products" Which have been down-engineered for that big-box store chain. I've seen the bits promoting WM in which various firms make their pitches for their products, and the WM people are always demanding that they lower the quality. Of course, they never explicitly said that, yet that was the common thread of the changes they wanted. Others have said that the firms for which they worked lowered their product quality just for WM. I think what tore it for me was a new dress shirt that was worn out within a couple months, when it should have lasted 20-30 years.

sissy sue
sissy sue

All of you are making good points. Thanks for the logical perspectives.

JCitizen
JCitizen

I just absolutely can't find it anywhere else, and I need it now. I get almost all my gear from online merchants. For instance, I like Rubber Maid - Rubber Maid told Walmart to fuck off on their polices and went independent, and I've always preferred their products. Most of the time I can get my stuff cheaper than Wally World anyway! Mostly cheaper than Sam's too! That everyday savings crap is just that; Target is cheaper most of the time, and I see "Made in America" more often over their too!

CharlieSpencer
CharlieSpencer

What's the difference between 'Keep on the same path' and 'Relax and enjoy my bonus'? I recall Mr. Sam had a 'Buy American' policy, but I'm getting old and forgetful, so I could be wrong.

Tony Hopkinson
Tony Hopkinson

If your response isn't relax and enjoy bonus, you aren't ever going to be ceo of walmart, ever...

Tigger_Two
Tigger_Two

I recently had to replace two TV sets. Both the set in my bedroom and the set in my downstairs living room were at least 10 years old. Having them both die at the same time was not helpful. I live alone- assuming you ignore the cat family- so I like to have the sound of the TV going. I can't fall asleep without it, and when I am downstairs, I want to be able to watch while doing tasks like crocheting that don't require a ton of my attention. The obvious solution? Replace both sets. There isn't a whole lot of "Made in America" choice when you are buying technology. That being the case, I went to Walmart to make this purchase. It only made sense. I could have gone across the street to Target, but my purchase would have cost me more money and I would have gotten the same thing- an item that was made overseas. It could, I suppose, be argued that Target is a US company- even a local one- so they should have gotten the business. Except that I don't [i]like[/i] Target and don't generally shop there. And there is the reason I shop at Walmart. I like the store. I like the people. I like the way I'm treated when I am making a purchase. Couple that with products I want to buy at a price I want to pay and you get an unbeatable combination. I don't disagree that removing competition from the field is a bad thing. As far as I'm concerned, though, Walmart [b]does[/b] have competition. Target is right next door. Price isn't the only reason I choose to not shop there.

oldbaritone
oldbaritone

As unemployment has risen and income has dropped, the nation itself has made the Walmart business model work. Many people must shop for the best value and the lowest prices. Increasing taxation, stagnant wages and inflation have been whittling away the buying power of families. I can buy exactly the same product in a store with glitzy displays and hardwood-paneled coolers, or in Walmart for significantly less. While lawmakers vote themselves cushy raises, they tell our elderly that they don't deserve a cost-of-living increase, while gasoline has passed $3.00 a gallon, probably on the way to $5.00 by the end of the summer. Their fixed incomes buy less and less every day, but they still need to live. Walmart is one of the few companies offering quality products at a reasonable price. It's the foundation Sam Walton used to build the company, and that philosophy has usually been successful. Surprise! It still is.

JCitizen
JCitizen

is up until now, I've been able to by more with less. My standard of living hasn't dropped despite the up and downs of the economy. Now I agree, it is time to promote American jobs; but then I think we are a bunch of cry babies too! ]:)

NickNielsen
NickNielsen

The American public hasn't thrown many bums out since I've been alive; the House reelection rate runs at about 93% since 1954. The House reelection rate in November 2010 was 86.9%. (390 incumbents, 339 reelected). [b]Not[/b] a major change, that 6%. The problem is that every election, the people conclude their bum isn't as bad as the alternative. It's those other bums that need to go.

CharlieSpencer
CharlieSpencer

Part of the problem is that Congress keeps borrowing money from it and writing it IOUs.

dhays
dhays

I am not sure wht you mean by "Peak Oil" If you mean that oil is running out and someday we will have to do without, then that is a looong way off, there is more oil being discovered every day and there is enough in th eWestrn Hemishpere that we don't have to deal with the Middle East at all. We need to remember that we get more oil from here in the WH than from the ME anyway. We shop all over the place, including Wal*Mart. Target, Homeland (Local Safeway chain was bought out and became independent). It is just that they put some companies out of business (see Ultimate Electronics, Circuit City for examples). When I bought my new TV a cuple of years ago, I went to several places, and ended up buying it at Conn's as they were $1000 cheaper than Circuit City they had just come to town and may have been offering a low price to lure customers in, but I couldn't spend $1000 more for the same make and model! Walmart/Sams aren't always the lowest prices--one has to shop the sales, consider distance travelled, double coupons, etc. Wal*Mart doesn't double coupons Homeland does, and they are a mile from the house where Wal*Mart is farther (There are 4 within 10 miles, though, two Targets, another Homeland in 5 miles, and two Sam's Clubs in that 10 mile radius. We have no Costco in Oklahoma at all, Sam's is the only game in town ) We shop around, buy groceries from Taget, Homeland and Wal*Mart. One doesn't get rich by buying from the highest priced shop in town. KMart moved out of OKC a few years back, and now is only in Shawnee, which is a good 50 miles from home across town. Food Lion, Albertsons have both left the area, Kroger has no presence in Okalahoma, nor does any of its subsidiaries Dillons or King Soopers. If you believe the pop-up ads on the internet Wal*Mart is doomed anyway.

JCitizen
JCitizen

but just as soon as he passed away, the vultures ruined his empire. I met him in 1996. He was a hell of a guy. He used to swoop down on unsuspecting stores in his helicopter, to see what the local manager was up to. He treated his employees like gold, and venerated the veterans, and guard and reserve members working for him. And he believed in buying American! I met him at HCI in San Antonio, because he was a friend of the owner since his Ben Franklin days in Arkansas; he always stopped by to have his helicopter serviced on the way to the next local store.

CharlieSpencer
CharlieSpencer

Stuff produced in the US is filling up foreign landfills. You want all that stuff back?

ScarF
ScarF

more than a couple of years ago, I purchased something from Walmart - the item doesn't matter. Than, on the way back to my home, looking at the product, my eyes fell over the "Made in China" inscription. A lot of thoughts went through my mind. But the final thought was to go back and return the item - what I actually did not very long after. Asked by the Customer Service attendant "Is there any problem with this item?" my answer was "Yes. It's made in China". The attendant looked at me mesmerized. I took my money back and - from that day on - I have never purchased anything made in China unless vital. And, in this, I include Taiwan - the generator of Foxconn and others. So, the answer is simple - for me: buy Canadian (or American for my fellows in the USA), buy Nafta, buy G7, and nothing else.

LocoLobo
LocoLobo

My clothes, electronics, tools all were made somewhere else. Unless by american you are referring to South America? Even in food the US is now a net importer. That includes the "fresh" veggies and fruit I get at the grocery store. Before we can buy American, Americans need to have something to sell. And it needs to be at an affordable price. In other words we have to compete on the world market. Right now, just my opinion, we in the US are all on the "Relax and enjoy my fat bonus" option.

CharlieSpencer
CharlieSpencer

So is it that you don't shop at Wal-mart, or that you don't shop at any brick-and-mortar stores?

Professor8
Professor8

Didn't seem to register my choice.

Professor8
Professor8

If all you want is some noise to guide you to sleep, get a radio; if it has to be TV noise, get a radio that picks up TV frequencies. Target/Dayton-Hudson isn't much better than WM (and neither is KMart/Sears) but if you're considering "locality" of the retailer's HQ, then Best Buy is not based all that far away. I dislike the Best Buy people less than all of those others. OTOH, I like the Borders, B&N, House of Books... people much better. The problem is that they disappear when you have a question, and they're climbing all over you babbling their pitches when you don't need them. And I don't like any of the stores, the color schemes, product arrangements (though of those mentioned I can put myself in a mind-set to cope with Target as intentionally neatly quirky/cluttered, and used to be able to zoom straight to the one worthwhile section of sears -- the tools -- until they totally trashed that). It's as though the designers have gone out of their ways to make them irritating. (And genuine department stores with their main entrances guarded by echelons of chemical/biological warfare specialists plainly do not want me as a customer, anyway.) Things I find distressing in retailers of all kinds: 1. the over-priced low-quality products 2. lack of privacy (yah, sure, they installed those dozens of surveillance camers, and dozens more fakes, because of all the shop-lifters) 3. lack of transaction privacy (a kkkard transaction costs them a tenth of a nice, anonymous cash transaction) 4. the lack of US-made product offerings on the shelves (it's not because there are none; it's because the retailers actively displaced higher-quality, reasonably-priced US-made products).

Professor8
Professor8

"Many people must shop for the best value and the lowest prices." That sounds like a strong argument against shopping at WM, since they only offer over-priced low-quality products which won't last. The WM model is to down-engineer products and make them from lower-quality materials. If you're on a tight budget, the logical thing to do is buy things made of good materials and workmanship which are going to last through the economic depression. The impression I get is that the typical WM customer is clueless. They don't know what a high quality product is, how it's made, or what materials will best serve the purpose. By looking only at price, and not what they're getting for that price, they're being conned. WM under Sam Walton is not the same as WM since his death.

skyeenter
skyeenter

Welcome to ASPO International ASPO is a network of scientists and others, having an interest in determining the date and impact of the peak and decline of the world's production of oil and gas, due to resource constraints. http://www.peakoil.net/ Peak oil is not about the world running out of oil. It about running out of cheap oil and how the economies and societies of the world will respond to the fundamental changes from it. If Target is not aware of this, why do you think they are switching from consumables to food? They know people will stop buying junk but their not gonna stop eating.

Slayer_
Slayer_

At least it rusts :) I live in Canada, we produce nothing (or so it seems)

JCitizen
JCitizen

I probably buy 75% of everything but groceries online. I almost always find Target, ALCO, Radio Shack, or STAPLES beats Wally-world hands down, even on PC deals! I really like mom & pop stores, but they don't sell things you can get in the big stores anyway; that is just smart business. All other factors being equal, including product quality; I check mom and pop 1st, Home Depot 2nd, Target 3rd, etc.....etc.... somewhere in last place is Wally world.

JCitizen
JCitizen

just because I like you Tony! I miss your hawk (Kestrel), carrying the pink ribbon of breast cancer awareness! :)

AnsuGisalas
AnsuGisalas

There, all better :) I do notice this trend that some posts get a single (-) for little apparent reason, certainly without reasoning. To be expected from the voting system, though.

Tigger_Two
Tigger_Two

That you don't know me and you don't know my circumstances, I can ignore your "suggestions" regarding what I [i]should[/i] do. As long as you aren't footing the bill, I will do that which I believe to be the right thing for me. My husband and I quit using Best Buy in 2007 when they completely screwed up a rather large purchase and then took their sweet time in rectifying the error. Even though hubby was a long time Rewards member, he was so disgusted with the lack of customer service that we simply chose to explore other options for our electronic needs. What do we learn from this? That each person is different and is going to show loyalty to a retailer or brand based on different things. I don't much care if a retailer installs surveillance cameras in their stores. By opening the doors to begin with, they assume risk. How they mitigate that risk is up to them. What I DO care about is how they maintain my non public information and what they do with it. This is the main reason I refuse to buy at Target unless the transaction is cash. Generally, I just don't bother with them. I can still find well made and even American made products on the shelves at my local WalMart, Sears, KMart, Penneys, etc. From my perspective, the issue is more around being a smart consumer. My job is to know what I want and insure that the item is the best available or the best I can afford. From there, my customer satisfaction is also a driver. If I can purchase a like item in a place where I have a more positive experience, I will go to that place first. At the end of the day, where one shops- or refuses to shop for that matter- is a subjective thing. What one buys is based on what they consider important. Edit- typo

CharlieSpencer
CharlieSpencer

Otherwise many of the products are the same offered at other stores, especially the groceries. Does the quality automatically go down when the stuff comes off the truck?

Tigger_Two
Tigger_Two

I purchased a Sony Bravia television set from Walmart on sale at $535. I could have gone across the street to Target and paid around $50 more for the identical product. I purchased a Garmin Nuvi GPS from Walmart at $85. The identical product was available at Best Buy and Target for an advertised price of $99. I recently painted my home interiors. I paid $22 a gallon for paint versus the identical brand (Kilz one coat) from Home Depot at $4 per gallon more. They may front some brands that aren't completely reliable, but to make the sweeping statements you have made completely ignores the fact that they carry name brand products at a better price point than other retailers. You are quite welcome to consider me clueless because I insist on getting the best value I can for the money I spend coupled with a positive customer experience. Sweeping generalizations are rarely correct.

JCitizen
JCitizen

but it is non sequitur as well. In the Midwest, folks are switching to CNG powered vehicles; and I don't mean roller skates. I'm talking about 4 wheel drive extended cab 3/4 ton trucks with the long bed feature! We don't need no stinking oil!!! Let the terrorists drink the stuff - we can get by with natural gas, coal, and battery powered transportation. I already see folks getting completely off the grid by converting to solar/wind/battery storage strategies at home, and enjoying the tax credits and seeing the electric power companies paying THEM royalties for excess power generated! Wind farms are going up faster than corn stalks in Iowa!!

CharlieSpencer
CharlieSpencer

This is a technology site, not a fuel or resources one. Perhaps you should have included explanation of what you mean by 'peak oil' in your original post, instead of taking for granted we knew what you were talking about. And I don't get why insist on capitalizing the 'P' in 'peak'. It's an adjective, not a brand name. Capitalizing it just confuses your point even further.

Slayer_
Slayer_

As long as you + vote me :)

CharlieSpencer
CharlieSpencer

to the biological 'end products' from the wheat you export? You want back what's left from my last Molson? It makes more financial sense to melt it down here than ship the empties back over the border. Most electronic refuse already winds up in Third World countries, where it's broken down under unsafe conditions by workers with no protection from the toxic materials and heavy metals. I have no problem with requiring COMPANIES to accept back the products they make; let the clean-up come out of the shareholders' profits. I see no reason why I as a taxpayer should have to fund such a program.

Tony Hopkinson
Tony Hopkinson

Damn picture is on my hotmail, now and it's getting hard to find real emails amongst all those from young ladies who think I'm unbelievably handsome. Or is that handsome, unbelievably... :p

NickNielsen
NickNielsen

That's what I use. Or 90001. I know why they're collecting that information, but I don't have to give it to them.

CharlieSpencer
CharlieSpencer

because the cash register prompts for a zip code and won't let me put in '00000'. They don't need my zip code to sell me stuff, and the first time it happened I left the merchandise on the register and walked away. It reminds me of the old Radio Shack policy of requiring the customer's phone number.

AnsuGisalas
AnsuGisalas

My mom has it real bad. For example, she used to bring us nearly inedible gourmet cookies from the local high-cost market, when what we actually liked was the dirt cheap Euroshopper Chocolate Chip cookies. I don't like those because they're the cheapest, but because they're the cheapest and the best. I don't base my judgment on the pricetag alone. Sometimes the quality makers put out their stuff under no-name brands as well; they have to build up production capacity, but they can't allow themselves to be seen as "watering down" their brand. So they shift the bulk savings to the noname and ship it out the back door. It's also a way to battle competitors; the noname brand is not a competitor to their main brand - they can scale it to match their needs, ending it if needs be, and it helps cover the production capacity investment. It is however, a competitor to other brands. Win/win.

NickNielsen
NickNielsen

I'd have said the quality went down when the price sticker went on, but that's not the case any more...

henryb
henryb

Actually, big retailers like WM dictate price to suppliers, who can either take the loss, or create an inferior product just for WM. So, is your $22/gal Kilz REALLY the same thing that's on sale at Home Depot?

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