It reads like something out of a presidential campaign stump speech. In a talk given to company management and quoted by Reuters, Wal-Mart’s CEO Lee Scott said "We live in a time when people are losing confidence in the ability of government to solve problems.But at Wal-Mart, we don’t see the sidelines that politicians see. And we do not wait for someone else to solve problems that might hurt our business or affect our customers in a negative way."
Wal-Mart now says it aims to cut healthcare costs by computerizing patient data and cutting drug costs. It will cut electric energy consumption by producing TVs and other devices which are more efficient in drawing power to operate. And, the company wants to work with car companies to help produce and market hybrids.
It would be easy to say that all of this is in Wal-Mart’s best interests. If its core low-income customers go broke, they cannot shop at the big retailer. That is generally bad for business. But, the comments from the company have the scent of something more. Wal-Mart refuses to stand by and let a slow government decision process gut the finances of its customers, if the huge firm can do anything about it.
By saying that it is big enough and strong enough to shape the economy for its customers, Wal-Mart is also sending a signal to other mammoth US firms. Take it on the chin because the economy is bad or take control over the factors that you can control to save your business.
Wal-Mart may not do well in 2008 but it is willing to go down fighting.
Douglas A. McIntyre
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