The Invasion of Walmart

[lawbinded]

I think there's quite a few pros and cons if Walmart takes over Massmart. I just can't make up mind whether or not the cons will be more than the pros. I'm also not sure if our Government is just simply overreacting...

[tec0]

I downloaded some video files about Walmart and they are really unethical. There workers must rely in welfare and other Governmental provisions to the absolute maximum. They are very anti Union and that is just naming a few of the problems that will form. In all the videos I have seen Wlamart is ethically challenged and that is what we don’t need in this country. Just another group of supper rich people milking the poor out of what little they have left.

[Dave A]

I'm also not sure if our Government is just simply overreacting...

Sorry - I've been head-down on work for a while now and ignoring what passes for news. What's government's problem with Walmart buying Massmart?

[lawbinded]

Sorry - I've been head-down on work for a while now and ignoring what passes for news. What's government's problem with Walmart buying Massmart?

Hi Dave, maybe this will help. http://www.businessweek.com/news/201...t-hearing.html

[Cat]

My two cents on this (and purely my personal opinion)....

We all know that the USA has fingers in any pies where the main constituent is oil. If you look into the history of Walmart and the financials of the same, you will notice that they are a mega-power in terms of market share and possibly because of their business ethic as tec0 mentioned. My opinion is that the government is more worried about having such a big American foot in the door because of the fear of retail markets being taken over by them.

I have a friend who works for Mass Group Head Office and we were talking about this last week. The staff generally feel quite glad about the proposed changes - however the same staff are the ones against the current SA unions. I havent decided whether it's a good thing or not but perhaps a new power in the markets will create change in the way marketing is done here?

Would be interesting to see if their business structure is compatible with our COnsumer act?

[Dave A]

Based on that story, what the trade unions raise is not an anti-trust or anti-competitive issue.

And I reckon government is going to have a tough time making a "public interest" case to the Competition Tribunal that actually falls within the scope of the Tribunal.

Would be interesting to see if their business structure is compatible with our COnsumer act?

Pretty much guaranteed they'll have no problems there. Any company that manages to operate within the pretty extreme consumer protection regimes that exist in many of the USA states is bound to find our CPA a breeze. I suggest it's the LRA that might prove an interesting experience for them.

[Colin]

My two cents worth is...It may be a good thing, to maybe, "wake up" the big monopoly giants in S.A. to better train their staff in customer satisfaction and better quality goods. How many times do they place "so called" specials adds and when you get there they have all types of "feble" excuses why they don't have stocks. One of these companies (I won't mention the name) has such a bad reputation for sub standard quality that, more often than not, you end up taking it back for exchange/refund. I might be wrong, but time will tell.

[lawbinded]

I think some of us know exactly to who you are referring to. Ultimately, we will be observing some significant changes in the way companies deal with customers, especially from a quality/service perspective. Elements like changes is South African Laws and "invasions" of international superstores like Walmart, could probably prove to have a positive effect on all/most South Africans. But I guess that time would indeed show us the bigger/better picture.

[HR-Student]

I personally don't think we are competitive enough. i mean already the government is concerned about Wallmart importing products from other countries instead of using the ones we produce. it is a reasonable concern and there needs to be balance in import and export policies. but on the other hand Wallmart is here to make money, and their profit will always come first even before the country's needs. i just wonder if there is any way in which we can increase our competitiveness instead of running to government policy to always save us

[tec0]

Considering that mass market systems like Game, Hi-fi Corporation and Incredible Connection it is showed that job creation is not on the agenda. There is no long term job potential with any of these stores mentioned. Yes you have your management groups but they don’t count because most of them are co-owners to start with.

Total, BP, Engine, Sasol and Shell service “Petrol” stations are impossible to buy if you are a minority this was my actual experience with all of them. You can have the money and the BEE but that doesn’t necessarily mean you will qualify on their criteria.

Will Walmart play the game? I think so yes as they will comply with everything government can throw at it but that will not stop them to find ways to import inferior goods from dodgy origins. But as sad as this sounds Walmart will fit right in as they are also there to profit “only” again you don’t see long term job potential here and when you consider that the same is true for ALL the above mentioned one realise how bad things will get for the “below average worker”.

[Dave A]

but that will not stop them to find ways to import inferior goods from dodgy origins.

AFAIK Walmart isn't famous for peddling inferior goods. They do have a reputation for competitive pricing and a no-quibble return policy though.

[KimH]

Aren't a great many of the products found on our shelves imported from China - the very country which has the worst reputation for less than savoury labour practices?

[tec0]

The documentary that I downloaded about Walmart showed a picture of an anti-union company that basically feeds on welfare as company benefits?

[westwoodworx]

The documentary that I downloaded about Walmart showed a picture of an anti-union company that basically feeds on welfare as company benefits?

Well I'm afraid that specific tactic will not quite work here in SA, as governmental benefits are nearly non-existent...

I would like to see how Wallmart's competitive pricing structure will affect the pricing of other retail giants... Any idea of when this will be happening?

[Phil Cooper]

I saw on ENews at lunch time that apparently Massmart have been given approval "subject to conditions".