Monday, February 16, 2004


Here's yet another reason to boycott Walmart. Not because 30 million dollars worth of cocaine was found in a shipment of toys bound for a Walmart store, but because they are so intent on cornering the toy market and eliminating all competition that they obviously are cutting corners wherever they can. These truckers did not exactly sound like they came from a reputable shipping company.

Troopers said the truck's driver was cited for driving on a suspended license and that he and a passenger appeared nervous during the traffic stop, so officers asked for permission to search the rig.

...Aquilar-Corona was charged with permitting an unauthorized driver to drive and possession with intent to deliver drugs. Galvan is charged with driving on a suspended drivers license and possession with intent to deliver drugs.

Walmart will no doubt deny any knowledge, just as they 'didn't know' they were hiring illegal aliens to do janitorial work. I find their denials suspect considering their marketing tactics. The lost profits from their 'loss leaders' need to be made up somewhere and Walmart fights dirty. The toy industry is concerned.

Said Jim Silver, publisher of the Toy Book, an industry magazine: "Wal-Mart is a very important part of the toy business, but toymakers don't want its low-pricing strategies to devalue their brands and their business - and put more toy retailers out of business."

The price wars contributed to the bankruptcies last holiday season of FAO Inc., owner of the famed FAO Schwarz, and KB Toys Inc., which plans to close nearly a third of its stores.

...Manufacturers see several concerns about Wal-Mart's pricing on the toy business: its deep discounting makes toys unprofitable for other retailers, who are likely to order fewer products. They also fret Wal-Mart's strategy forces more traditional toy stores to close. Plus, toys may become a devalued product - permanently lowering margins and making toys that are never discounted seem far more expensive to shoppers.

The industry is worried enough to fight back by delaying shipments of the latest toys for several weeks and limiting total shipments to the deep discount retailers.

"Whether it is exclusive launches or controlled product shipments, they are going to do whatever they can to keep other retailers healthy," Silver said.

I understand the need to save money in today's economy but please think twice before you patronize this store. At Walmart you may save a buck today but you will pay the social costs tomorrow.


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