How Wal-Mart Has Had an Effect
On Small Town Retailers
Ashford University
ENGLISH 122
Instructor Vasquez

How Wal-Mart Has Had an Effect on Small Town Retailers
Our world is evolving into a fast paced environment. Almost everyone is on the go. This means that we do not have a lot of time to make several stops to grab the things we need, or want. Convenience is the key to keeping busy lives, at least somewhat in order. What can be better than having everything we need convenient to us, and also at the lowest prices? That was the goal of Sam Walton, founder of one of the largest retailers in the United States, Wal-Mart. He wanted nothing from his store but to be able to provide people with a lower cost of living, at a convenience, so that they can live better (Walton, 1992). While Sam’s goal was to better people’s lives, he may have affected some small town retailers as his large corporation spread across the country, more than he knew was ever possible. Even though small town retailers provide exceptional customer service and products, some of their businesses are significantly affected by large corporations, such as Wal-Mart, entering their community. Wal-Mart offers lower prices, vast varieties of items, as well as convenience. This can in turn, have a negative effect on small town retailers, or even have a positive effect on a select few of them, too.
Living in a rural area means that you live outside of a big city or a big town. People living in a rural area depend mostly on their small town retailers to supply them the things they need for their everyday lifestyle. Such as groceries, toiletries, clothes, cleaning supplies, and even fuel for vehicles. Small town retailers can often be a little more expensive than the local Wal-Mart’s prices. This is mostly due to the difference of the supply and demand between small town retailers and large corporations, such as Wal-Mart. Wal-Marts tend to order in massive quantities to be able to supply all of their shoppers needs, in bulk. Wal-Mart is such a large corporation that they are able to import products from overseas at a lower average cost than typical small town retailers (Basker, 2007). Small town retailers do not have to order in such large quantities, so they tend to have a higher markup in prices because of their wholesale prices or transportation costs (Phibbs, 2010). Small town retailers usually make up for their high priced items with their customer service skills. They tend to know all of their customers by first name, which makes for exceptional service. Knowing your customers help lock them in, so that they will become loyal customers. Being able to know what your customers want, and how to give them what they want is a key trait to keep with small town retailers. Although, when it comes to prices, most customers will jump at the opportunity to save a few bucks. This is why most small town retailers cringe at the thought of a corporation, such as Wal-Mart, entering their town.
While Wal-Mart is one of the largest retailers in the United States, selling nearly $328 Billion dollars’ worth of retail in 2012 (Wal-Mart, n.d.), there is no doubt that the corporation could have some kind of an effect on small town retailers. Wal-Mart is proved to be a store where you can find anything you need, all in one spot. Wal-Mart’s sales consist of grocery items, clothes, cleaning supplies, furniture, toiletries, jewelry, sporting goods, gardening supplies, and much, much more. To this day, Wal-Mart sells more grocery items inevitably more than any other company not only in the United States, but in the whole world (Fishman, 2006). So, of course small town retailers are threatened by such a big corporation being placed in their town. They cannot compete with the vast variety of items that Wal-Mart sells, especially competing with Wal-Mart’s low prices. Wal-Marts prices are an average of 8-27 percent lower than its competitors (Beaver, 2005). Once a Wal-Mart if placed in