I Track Big Retail Shenanigans So You Don't Have to. Today We're Looking at Walmart.
Yes, again
I give Walmart a lot of shit. But that’s because it’s so well deserved.
Walmart reported about $648 billion in revenue for fiscal year 2024. That’s +6% from the previous year. The average hourly wage for frontline associates is $17.50/hr. That’s about $36,000/year if you work a 40-hour work week.
The federal poverty level in the United States is $31,200 for a family of four.
The company states that they’re “continuously investing in higher wages” and “It’s time for Congress to put a thoughtful plan in place.” (Wait, but why do you have to wait for Congress to act? You’re the largest retailer in America.)
There’s also this gem:
“Simply put: We want to see our associates thrive. We mean it when we say our people make the difference.”
Do you, though?
Because Walmart’s actions do not align with its PR statements and website fluff.
The company goes on to highlight associate benefits, like:
Medical coverage
Paid time off
401K match
A 10% discount on produce and “general merchandise"
Free Walmart+ memberships
Discounts on gym memberships
I mean, that’s all pretty standard.
Walmart does have a program called Live Better U where they pay for their employees to get certain degrees at certain colleges. Which is awesome! And they could also do more.
Okay, really quickly, to put that $648 billion into perspective for you.
If you had $1 billion and a family of four, you’d have to spend $20 million per year over 50 years to spend it all. That’s for only $1 billion. It’s hard to imagine how much money that is.
So, when Walmart says, “we want to see our associates thrive.” No. No, you don’t. Because you can afford to pay people more, but you don’t.
Anyway, here’s what Walmart has been up to since I’ve been following their shenanigans.
September 2023
In September of 2023, CNBC reported that Walmart was reeling in the starting pay for its hourly workers. The company had bumped up the pay to help staff stores during the pandemic, but then it pulled back.
They were going to start hourly workers at one dollar less. The largest retailer in America. One dollar less.
Mmmmmm hmmmmmm.
A dude in my LinkedIn comments said that starting new people at one dollar less was not the same thing as taking a dollar away. I disagree. It’s exactly the same thing.
Tomayto, tomahhhto, I guess.
You can read the full article here.
May 2024
Earlier this year, there was chatter about Walmart and its self-checkout lines. Basically, customers were hella stealing when they were checking themselves out. Sure, some people mis-scanned their items on accident. But a lot of people were like, “If I have to ring myself up, I’m taking stuff. I don’t work here.”
Consider me not surprised.
So, Walmart decided to offer self-checkout for Walmart+ members only. The Walmart+ membership is $98 per year + tax. Members get free deliveries, free shipping, special prices on fuel, and some other stuff.
Then Walmart appeared to have a cashier shortage.
Was the company keeping lines long to encourage membership sign-ups? That’s what some people allege.
Read the story here.
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June 2024
Over the summer, many companies replaced their shelf stickers with digital barcodes. Walmart was one of them.
The digital barcodes let companies change prices on the shelves from their computer. Which is super cool. If you’ve ever had to update shelf stickers across an entire department or even store, you know.
Some retail analysts said the digital barcodes could enable dynamic pricing (surge pricing). Companies could raise prices on items that were selling out quickly. They could also raise the price of water on a hot day.
Another LinkedIn dude in my comments said, “No way” that companies will use digital barcodes for surge pricing. Um, they absolutely will. Other industries already totally operate like this. Bought a plane ticket recently? Booked a hotel? The prices are higher when demand is higher.
Check out the full article here.
Ready for sticker shock? Surge Pricing is Coming to a Store Shelf Near You.
November 2024
Last month, Walmart announced that it is cutting its DEI programs.
“The retailer will wind down the Center for Racial Equity, a nonprofit Walmart funded with $100 million in 2020 for five years, and programs that provide assistance to suppliers that are 51%-owned by women, minorities, veterans or members of the LGBTQ community.”
The company will also phase out the term “diversity, equity, and inclusion” (DEI).
I compiled a list of some Black-owned businesses to buy from instead.
I received some hate on this article. “DEI is racist AF," someone said. I also got a lot of support.
Check it.
That’s currently the entirety of my Walmart story vault. I’ll continue to watch the news and track what they do.
But it’s frustrating, right?
They talk that slick corporate chatter. Saying they support their employees. They tell us how digital barcodes will make our lives better. They tout their membership benefits. Then, they pull DEI incentives.
They hope we won’t notice their billions upon billions of dollars. Or realize how much money that actually is. Because then, they may have to actually pay their frontline teams more.
Cheers to all our readers out there!
Thanks for being here.
Kit Campoy is an author and retail expert with two decades of experience leading retail teams. Today, she freelance writes for world-class SaaS Retail Tech companies.
We so need this type of reporting and tracking especially these days. Plese keep this going!!!
I am not a Walmart lover either - used to work there myself. Please keep one thing in mind - Walmart generates over 450 Billion in Revenue - not profit per year. There is a big difference between the two.