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We've all heard them, but none of them are true. We have the facts behind the myths that Wal-Mart would like you to believe:

 Wal-Mart will bring more jobs to our community.
 Wal-Mart will bring more money to our community.
 Wal-Mart has the lowest prices.
 Wal-Mart Casts Itself as a Good Corporate Citizen.
 Wal-Mart cares about its employees.

 Myth: Wal-Mart will bring more jobs to our community.

Facts: Multiple academic and economic studies reveal that despite Wal-Mart's mantra of adding jobs and improving the local and national economy, the reality is exactly the opposite.

  • Between 1992 and 2002, the grocery industry lost 13,000 stores and thousands of jobs. For each Wal-Mart Super Center that opens, two grocery stores will close.
    Source: Retail Forward

  • The Florida-based Winn-Dixie Supermarket eliminated 11,000 jobs to compete with Wal-Mart in 2000.
    Source: Associated Press

  • In the first decade after Wal-Mart arrived in Iowa, the state lost 555 grocery stores, 298 hardware stores, 293 building supply stores, 161 variety stores, 158 women's apparel stores, 153 shoe stores, 116 drugstores, and 111 men's and boys' apparel stores.
    Source: Iowa State University Study

  • Today Wal-Mart uses over 3,000 Chinese factories to produce its goods—almost as many factories as it has stores in the U.S. (3,600). Wal-Mart is America's largest importer. U. S. companies have moved operations overseas, while imports flood into the U.S., a combination that has cost millions of lost American manufacturing jobs.
    Source: L A Times/Associated Press

 Myth: Wal-Mart will bring more money to our community.

Facts: Money spent at Wal-Mart does not stay in the community.

  • In Virginia, for example, 60 cents of every dollar spent downtown, stays downtown—compared to just six cents for every dollar spent at the so called "big box" store, such as Wal-Mart.
    Source: Associated Press

  • "Three times as much money stays in the local economy when you buy goods and services from locally-owned businesses compared to chain stores."
    Source: Institute for Local Self-Reliance (ILSR), 2003

  • "The analysis found that the chain returned only 14.1% of its revenue to the local economy, mostly in the form of payroll. The rest leaves the state, flowing to out of state suppliers or back to corporate headquarters."
    Source: ILSR, 2003

  • Local businesses rely on local services and suppliers (banks, manufacturers, accountants, lawyers, farmers, newspapers, internet providers, etc.). Wal-Mart uses international suppliers and corporate services.
    Source ILSR

  • Local business owners live here. They care about our people and our future. In mid-coast Main, for example, local businesses make charitable donations at four times the rate of Wal-Mart.
    Source: Main State Planning Office Statistics

 Myth: Wal-Mart has the lowest prices.

Facts: "Wal-Mart's match its rivals on average."

  • The key principle behind Wal-Mart's "Everyday Low Pricing (EDLP)" is that prices are based on the level of competitions in that given community at that given time. As these competitors close, due to Wal-Mart's low-balling of prices, the pressure on pricing eases up, allowing Wal Mart's prices to float higher.
    Source: The Case Against Wal-Mart, 2004

  • Wal-Mart which advertises itself as the everyday low price leader isn't necessarily so. A shopping survey was conducted over a one-month period from a list of 19 household items at six stores. Of the 19 items purchased, Wal-Mart's was the cheapest for only 2 of the 19 items.
    Source: Carroll County News Staff, Arkansas

  • In the October 2006, issue of Consumer's Report, Wal-Mart was ranked 45th among national grocery stores based on service, perishables, price and cleanliness. Trader Joe's was number 2 and Costco was number 7.

 Myth: Wal-Mart Casts Itself as a Good Corporate Citizen.

Facts: As the largest private employer in the US, Wal-Mart has come under particular scrutiny for its labor practices.

  • Pressure to keep labor-costs down has led to illegal practices including forcing hourly workers to work off the clock, failing to pay overtime, preventing workers from taking lunch brakes, locking in nighttime workers, using cleaning contractors that hire and exploit undocumented workers, and violating child labor laws. All these practices have led to lawsuits against Wal-Mart.
    Source: Rep George Miller, "Everyday Low Wages: The Hidden Price We All Pay for Wal-Mart."

  • Wal-Mart lost the largest gender discrimination class action suit in US history, Dukes vs. Wal-Mart stores, Inc. This suit involves 1.6 million current and former female employees. In the lawsuit, Wal-Mart was forced to reveal that women made up 72% of Wal-Mart's hourly workforce, but accounted for only 15% of its store managers.
    Source: New York Times, 12/03/04.

 Myth: Wal-Mart cares about its employees.

Facts: Wal-Mart Associates don't earn enough to support a family.

  • A substantial number of Wal-Mart Associates earn below the poverty line. A "full-time" employee at 34 hours per week making the Wal-Mart average wage of $10.11 per hour (per Wal-Mart) will earn $17,874.48 per year. The federal government definition of poverty for a family of four in the contiguous US is $20,000.
    Source: 2006 HHS Poverty Guidelines

  • One out of seven Wal-Mart employees has no health care coverage. Associates must wait one year before they are eligible for Wal-Mart health care coverage. A leaked Wal-Mart memo shows Wal-Mart employees spend 8% of the income on health care, nearly twice the national average. In addition, 46% of employees' children are either uninsured or on Medicaid (Medical).
    Source: New York Times, 10/26/05

  • Wal-Mart has the highest employee turnover rate of industry, over 50% the first year. This translates into approximately 50,000 employees per month. In Wal-Mart's business model, high employee turnover is not a bad thing since it lowers payroll cost and means fewer employees qualify for benefits.
    Source: New York Times, 10/26/05

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