Wal Mart as an Economy

Wal Mart is actually an economy within an economy. This situation exists almost nowhere else in American business. Total revenue for Wal-Mart in 2006 was about $345 Billion. To put it in context, that dollar amount exceeds the GDP ( according to World Bank figures) of the following countries: Poland, Austria, Norway, Saudi Arabia, and Denmark (not combined). It's about equal to Peru, the Philippines, and Singapore, combined. Wal-Mart also employs about the same number of people that reside in the cities of Seattle, Washington DC, and Boston combined.
Wal Mart has become a center of American life in many towns. Are they helping us sink deeper in debt to China? Definitely, but much of the blame for that can be placed squarely on the shoulders of consumers themselves. After all, if the majority of consumers would look farther than the price tag when they made their purchases, they may decide that the trade offs of buying non-Chinese produced products (if they could find them) would be worth making.
Why has Wal-Mart been so successful? A number of reasons, but two of the primary ones that stand out are their prices and the ultra efficient distribution system that allows them to be profitable at very low margins. Indeed, a 2003 study by economics professor Kenneth Stone of Iowa State University found that Wal-Mart's distribution cost per unit of sales was approximately one fourth that of Sears, and one third that of K-Mart (maybe one reason why K-Mart had to declare bankruptcy?).
Wal-Mart Super Centers can dramatically affect the economy of the entire county. Indeed, a Mississippi study in 2002 found that total sales in the counties with such stores were up over 10% beginning three years after the store opened over counties without Super Centers. Another finding cited in the Stone study was that when a building materials super center such as Wal-Mart, Home Depot or Lowe's is opened, it causes the gross sales in that town to rise by between $30 - $50 million.

Another effect of Wal-Mart on our nation's economy is cited by a 2005 study performed by economic research firm. They found that Wal-Mart made a statistically significant impact on keeping U.S. inflation at bay because of their low prices. They also found that Wal-Mart improved the entire U.S. economy's efficiency by .75 percent. Note here: The study was commissioned by Wal-Mart.

Many critics complain bitterly about the tactic used by Wal-Mart to secure such low prices, but vendors trip all over themselves in order to count themselves as one of the retail giant's customers. Perhaps it would be better to exclude them from one's customer list and avoid the pressure of succumbing to their every whim? After all, having such a large account is similar to the way taxes affect our government; once they get used to a revenue source, it is very difficult to let it go. Better to avoid it in the first place?