Alana Semuels writes for TIME magazine, where this article appeared. She rightly notes that dollars spent at Walmart hurt locally-owned businesses. In many parts of the country, you can drive through small towns and see empty stores that used to be owned by local folk. They couldn’t compete with Walmart’s low prices. Maybe mom-and-pop got a job as greeters at the Walmart twenty miles away. Walmart keeps its prices low not only by its buying power but by prohibiting its workers from forming unions.
Walmart destroys small towns and communities by killing their local economy. if Walmart finds that its super store is not profitable, it will close it and move on, leaving behind devastated towns and communities.
But that’s not the only reason to avoid Walmart. Its owners, the Walton family, are avid supports of school choice. They are the biggest supporters of charter schools, other than the federal government, which dutifully spends $440 million every year to expand new charters, mostly corporate chains like Walmart. Did you ever imagine that your local public school would be replaced by a chain school? Of course, members of the Walton family top the list of America’s billionaires. With a combined wealth of more than $240 billion, they are America’s richest family. Don’t make them richer.
Ironically, Sam Walton, the founding father, graduated from public schools. He graduated from the David H. Hickman High School in Columbia, Missouri. Unlike his descendants, he did not hate public schools; he did not want to privatize and destroy them.
Alana Semuels wrote:
Every week, I go onto Walmart’s website and order a bunch of groceries to be delivered to my house and then feel a little bit guilty.
Walmart is a multi-billion dollar corporation with headquarters more than 1,000 miles from my home; the money I spend there goes to shareholders and executives who live far away, instead of to my local grocery store, Key Food, an 86-year-old co-op of independently owned stores based near my home in New York. By shopping at Walmart, I am likely contributing to the demise of the independently-owned grocery store, which is disappearing across the country.
But the prices make the choice easy. On a recent day, the 42-oz tub of Quaker Oats I get each week was $9.99 at Key Foods and $5.68 at Walmart; a 500 ml bottle of California Olive Ranch olive oil was $14.49 at Key Foods and $8.37 at Walmart; Rao’s homemade tomato sauce was $9.99, while I could have gotten the exact same item on Walmart for $6.88. On these three items alone, I saved $14 by shopping at Walmart.
These prices are one reason that Walmart captures one in four grocery dollars in America, but there’s an argument to be made that Walmart and other big chains including Dollar General, which is expanding at a rapid clip across the country, come by those prices unfairly because of their market power.
There’s a law on the books—1936’s Robinson-Patman Act—that essentially says suppliers in any industry can’t give lower prices and special deals to big chain stores if it costs the same to serve them as other stores. The law also says retailers can’t try and bully suppliers into giving those discounts.
But because Walmart and dollar stores are so huge, representing a big part of a supplier’s business, they’re able to extract deals and low prices from suppliers, according to Small Business Rising and the Main Street Competition Coalition, two groups of independent business owners making their case in Congressional hearings and television ads. The pandemic highlighted just how unfairly Walmart can wield its power, the small businesses are telling regulators, because it was able to demand that suppliers stock its shelves when competitors weren’t able to get the same products for weeks or months. It’s not just groceries; independent pharmacies, book stores, auto parts stores, and other types of retailers are also struggling on an uneven playing field, they say.
Please open the link and keep reading.

I also remember reading how as tax payers subsidize their workforce because we pay for Medicaid they use!
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I heard on NPR (I think) a few years ago that applicants were actually told by Walmart that they would qualify for Medicaid as their health insurance.
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While I have no reason to quibble about the local grocery prices the author faces, my grocery stores are pricing very similarly to Walmart. There is very little to choose from between Walmart and other grocery chains. I eagerly await the opening of a new grocery whose reputation is that if offers lower prices, we could use the relief.
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I suggest Costco, whose employees are unionized, also Trader Joe, Aldi, and Lidl.
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Trader Joe’s has been fighting off efforts to unionize.
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Terrific piece! Thanks.
Cali Cole
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I never shop at Wal-Mart or Sam’s Club that belongs to Wal-Mart — for decades.
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Me neither.
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I’ve never been to a WalMart
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It’s long past time the Justice Dept investigate Walmart for violating anti-trust. They’ve monopolized the southern states for too long.
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Difficult to find a monopoly when Amazon is around, and where prices are extremely low.
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Amazon is often not the best price.
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The point is that there is vigorous price competition between Walmart and other retailers, most significantly Amazon.
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I don’t see that as the point at all. The post was not about how to save money as a shopper. It was about why it’s best to shop anywhere but Walmart. Shop locally. Don’t feed the corporation whose multimillionaire owners hate public schools.
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I was responding to a comment about Walmart being a monopoly.
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I was responding to a comment about Walmart being a monopoly.
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Agree that it is long past time to do some trust busting. I have family in a Southern small town. They hate using Amazon and Walmart, but they are compelled to because there are no other options. There. Are. No. Other. Options. That’s a monopoly.
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Duopoly in theory.
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Duopoly is monopoly.
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I read somewhere that The Walton Family Foundation, is responsible for funding a quarter of the charter schools in the USA. They get a generous tax deduction for undermining public schools and the unionized teachers that work in them.
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RT,
That’s true about the Waltons. They have funded about a quarter of the charter schools. The only bigger funder is the US Department of Education, which spends $440 million annually to expand charters or grow new ones.
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Glad to see that some are finally realizing what many of us knew and have been doing for a long time-not shopping at Walmart or Sam’s Club.
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Thank you for this article!!! I have known this all along being from Tulsa, Oklahoma and personally knowing Rob Walton. I WOULD LOVE for this author to be interviewed on 60 Minutes so others would become aware!
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Ms Samuels should read the book The Walmart Effect.
Walmart employees are often limited to part-time hours & need to apply for SNAP.
Walmart also imposes on suppliers, forcing them to reduce prices, so some resort to overseas production.
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Sam Walton was caught selling clothes manufactured in Third World sweat shops way back in the late 1980s when he was still advertising everything was “Made in USA.”
He also sold goods at below his cost as an intentional tactic to drive small local stores out of business, according to news stories at that time.
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I feel like overseas work conditions was a very popular issue back then and in the 90s. I don’t hear much about it today.
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FLERP– I read recently about Uyghurs and other persona non grata being confined in W Chinese labor camps where they do mfg piece-work at sweat-shop prices while being re-educated in desirable cultural traits.
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Flerp, may I suggest finding some progressive news sources?
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For details about our “green” energy revolution, search for words like “child labor, lithium, cobalt, Congo, South America” for reporting by CBS, the UN, Amnesty International, etc about minors as young as 7, contamination, destruction of dwellings that are in the way, etc.
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Seems to me the writer of this TIME article is not willing to pay the owners and workers in her local stores a living wage. “There’s a law on the books—1936’s R-P Act—that essentially says suppliers in any industry can’t give lower prices and special deals to big chain stores if it costs the same to serve them as other stores.” This is a typical well-intentioned but unenforceable law. Does the law have provisions for raising money and paying for enforcement? Of course not. More fundamentally though, COLLUSION IS NOT NECESSARY for a supplier to offer lower prices and special deals to big stores, BECAUSE a more fundamental economic principle has a greater effect in lowering prices–the economies of scale.
IT DOES NOT COST THE SAME to serve big chain stores and small independents. I founded and ran two different small-town retail stores for 15 years (both, simultaneously). My suppliers gave me a lower price if I bought more. UPS charged less (by unit and/or weight) if they hauled more to my store. Most manufacturers of the products I sold would not deal directly with most retailers; the manufacturers sold to my suppliers only (also known as distributors), in very large quantities. If you mass produce something that a lot of people need or want, you have to decide: do you want to be a manufacturer ONLY? OR, do you want to run TWO businesses by also distributing your products? OR do you want to run THREE businesses by operating your own retail stores, too? Each addition or expansion requires more money, more employees, more risk, but–maybe–much more income. This is the capitalist formula for producing massive wealth and–too often–crooked, antisocial, know-it-all tyrants.
My two small businesses were in a small town, with total sales of around $250,000 annually. There’s not much left after you pay for the goods (including the distributors’ markups), the UPS service or my own truck, a few employees, plus mortgage or rent, utilities, taxes etc. Over the decades, I’ve watched the businesses come and go in that small town. The only large chain stores in town are and were two grocery stores and four gas stations. Few other stores remain now, 50 years later. Most people go to the small city 30 miles away, which is encircled by many of the national chains, or buy online.
“The law also says retailers can’t try and bully suppliers into giving those discounts.” The retailers don’t have to bully suppliers. All they have to do is buy more product, and open more stores!
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Thanks for this informative background from someone who has been in the trenches.
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Wow. Excellent piece. How sad and angry it makes me to see the concept of “consumer protection” turned on its ear: as long as consumers get low prices, it doesn’t matter how many businesses in the supply-chain are harmed, how many food deserts created, how many small businesses are destroyed. [Businesses with fewer than 100 employees employ the largest share of US workers.] Therefore, even though Walmart is clearly a monopoly, there has been no govt will to enforce anti-trust laws. It’s good to see Biden’s agency people going after this issue.
I haven’t been to Walmart in many years. So long ago that one hadn’t even yet heard of their paying employees so little that most require public assistance. But this article makes me re-examine my Amazon shopping. I buy books there because there are no more used-book stores: we consume a ton of them, and Amazon has become my used-book store. Between a preference for CD’s [the wonderful printed detail enclosed!] and the low rate for Amazon music-streaming, that’s another big category. I buy a few bulk household paper supplies there because it saves toting large/ heavy items from the grocery store [my back!]. And they’re great for oddball items that can’t be found in local stores.
But on the whole, my local grocery—one of those retailer-owned cooperatives like the one mentioned here—has very fine fresh produce/ meat/ fish, and a quality, reasonably-priced “store brand” for many products, so that’s my main source for food. Also: the older I get, the less cooking I do. We are very lucky to have a few reasonably-priced, mostly family-owned places for meal delivery. And [the gold!], a nearby “farm stand,” family-owned, which in addition to fresh farm and dairy produce, has a wide selection of ready-to-heat-up homemade meals from small vendors in the area.
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Try Better World Books for used books. I learned about it from a teacher.
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Thanks!
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Thriftbooks.com is another site for used books, most with a synopsis and 5 reader reviews; also choice of condition and hard or soft binding at varied prices
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Thanks to you too, Mark!
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Diane is the best, but WordPress sucks.
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In other news, dictatorial suppression, by violence, of the press in Russia:
https://www.pbs.org/wgbh/frontline/documentary/putin-vs-the-press/
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The author refers to the Robinson-Patman Act of 1936: For a quick, clear and somewhat short explanation of this law and its sporadic enforcement, see WIKIPEDIA.
Basically it requires interstate businesses to offer the same quantity discounts to anyone and everyone. In theory that eliminates sweetheart deals and requires set prices for everyone, but that doesn’t help if you’re a small business and can’t sell the large quantities that you’d have to buy to get the lowest price.
There’s a related law or court case that came much later and allows certain specialty businesses and manufacturers to sell their products ONLY to approved specialized dealers. This applies to dangerous, technical, or expensive products where manufacturers can show that the success of their product and business depends on having dealers with the training, experience, staff and financing to provide an attractive, well-stocked place of business with full technical support. Things like medical equipment, cars, power tools.
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Well, I guess I’m ahead of the curve here; have shopped only once at Walmart…30 years ago. I can survive without it.
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