Thursday, August 19, 2004

How the more Walmart is attacked, the more successful it is

Increasingly, communities are fighting Walmart, or at least the people who run the communities do. Furthermore, the press, unions and others attack the company for paying too little, providing low benefits and treating employees badly. Yet customers continue to flock to Walmart. I believe that the more Walmart is attacked on these grounds the more consumers believe that it has the lowest prices. Consumers are not altruistic, if they see Walmart skimping pennies, they take it to mean that costs and therefore, prices, are low. The more Walmart is attacked, the stronger its brand positioning becomes.
Perhaps if unions and communities want to be successful in attacking it they need to point out ways in which Walmart does not provide value!

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