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What is the Walmart Effect? Question will end at 8:00 AM ET 4/30/07?



I need some information on the walmart effect for a marketing paper. i have absolutely no idea what it is and the paper is due tommorrow afternoon. what are some LINKS on the net that can help me write a one page paper on the walmart effect. thanks for ALL answers

The Walmart Effect can be devastating for local businesses as well as established businesses such as K-Mart, Cosco, Circuit City, Best Buy, and Mom&Pop Stores.

What happens is that Walmart sets their prices so low that competitors can not match them without losing money. This whole-sale approach ensures that whatever year, decade, or economic situation the economy is in....Walmart will almost always make profits while the little guys with honesty suffer.
The Mom&Pop stores can not hook up with cheap massive deals with China, but Walmart can.

Even if you do not shop at Walmart--ever, you are going to be affected by the Walmart effect. Source(s): http://www.walmarteffectbook.com/...
http://www.wordspy.com/words/wal-marteff...
http://en.wikipedia.org/wiki/wal-mart...
a good example can be found i nthe OC register
but the net effect of the Wal Mart Effect is the same analogy of the 800lb gorilla
in that where does the 800lb gorilla go?
anywhere he wants

so when Walmart set the prices on a given item ( as they recent did with 42" Panasonic HDTV Plasmas ) for under 1000 dollars, the net effect was EVERYONE had to pricematch
but since Walmart prices were deep EVERYONE but Walmart lost money in doing so as they do not want to give up market share to Walmart

as a result

Circuit City closed 39 plus stores
CompUSA for the most part is closing most of their stores
Bestbuy and Tweeter have lower earnings as a result
and a few other chains just went bankrupt

that's the Walmart Effect
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