Wal-Mart capitalizes on the bad economy

As the holiday season is fast approaching, everyone is starting to penny pinch in order to buy for their loved ones (especially students).

Enduring these economic times, everyone - not just students - are a little strapped for cash. So this holiday season is the year of the big box stores.

According to a recent survey, two thirds of Canadians are planning to spend their hard earned-holiday money at Wal-Mart, 51 per cent are going to Zellers and 40 per cent to Canadian Tire.

"This year the consumer mood is changing and as a result retailers are facing fiercer competition for a smaller pool of spending dollars," said Robert Daniel, Managing Director of Maritz Research Canada in a press release. "With a reduced budget, shoppers will be less tolerant and retailers are going to have to do more to make sure customers feel they have a good experience."

When speaking about big box stores, the company that predominately comes to mind is Wal-Mart. They have already prepared for this competition by reducing "thousands of prices on items like toys, electronics, housewares and small appliances, to help Canadians celebrate the holidays", as stated in a press release from the corporation.

Wal-Mart plans on rolling back hundreds of prices every week until Christmas.

"Customers are feeling financially pinched and we're responding with record-low pricing so that customers can have what they need and want this holiday season," said Sylvain Prud'homme, Wal-Mart Canada's senior vice president of merchandising in a press release. "Our sales data shows that customers are still intent on celebrating Christmas and we're ready to provide savings that matter around the home and under the tree."

Hearing this news brings attention to the prevalence of big box stores in Canada which is concerning for a lot of people and brings a lot of anti-corporate sentiment.

"I think [people] flock [to big box stores] because of the prices. I think the chain of events is that people are losing hours, losing pay, or losing jobs and their discretionary money becomes smaller and smaller," said Jonah Butovsky, professor and Director of Labour studies.

He further commented that when big box stores move into areas like St. Catharines, they have the most impact because they tend to push out the competition. He also noted that a big problem with these types of corporations is that they tend to give low wages to their workers, rely on part-time work and capitalize off of other countries with even lower wages and less environmental standards.

"I think that, in general, that there is a certain logic to retail . Wal-Mart is often targeted as the real evil one, and I think that they are just part of the trend," he said. "Wal-Mart is a real draw for anti-corporate sentiment. But I think that that anti-corporate sentiment should be evenly distributed . a lot of middle class people have an anti-Wal-Mart elitism."

He also said that Wal-Mart is the focal point of a much wider problem. However, he notes that there are some good things to big box stores.

"I guess the good thing is that they do offer affordable things for people with limited money . that hurts me to say that," Butvoskty said. He added that there does not seem to be too many other options.

He noted the example of children's toys which are not readily available in places other that big box stores.

"If you shop at a Canadian big box store or an American-based big box story, it doesn't really make a difference. In either case the little guy is squeezed out," he said.

In response to a question posed about the recent death of the Wal-Mart employee, Butovsky said, "I think that if a corporation could be held criminally negligent, then they should be".