More on Devolution and the Walmartization of Our Economy

Yves Smith opines More on Devolution and the Walmartization of Our Economy.

Smith notes that Walmart has cut costs so much that they are losing customers because:

• Lines are too long at the checkout; and
• Products are not being stocked on the shelves.

These are all because there are too few employees per store.

The first problem can be overcome with automation through the use of self-checkout counters. But then there is the problem of customer fraud as they scan only some of their goods, or choose cheaper items from the look-up menus.

The second problem is more serious as stock has to be on the shelves in order for it to be sold. Even in Australia, it is not uncommon to see gaps on the shelves where popular products have sold out. Either you can switch brands, defer your purchase, or go elsewhere.

Once a company chooses a path of cost-cutting to achieve results, it is very hard for it to change its direction. Inertia in large organisations is just too great at times.