Evil Wal-Mart Uses Capitalism To Lower Food Prices

The bastards.

(Fortune Magazine) — With gas, grain, and dairy prices exploding, you’d think the biggest seller of corn flakes and Cocoa Puffs would be getting hit by rising food costs. But Wal-Mart has temporarily rolled back prices on hundreds of food items by as much as 30% this year. How? By pressuring vendors to take costs out of the supply chain.
“When our grocery suppliers bring price increases, we don’t just accept them,” says Pamela Kohn, Wal-Mart’s general merchandise manager for perishables. To be sure, Wal-Mart (WMT, Fortune 500) isn’t the only retailer working to cut fat from the food chain, but as the largest grocer – Wal-Mart’s food and consumables revenue is nearly $100 billion – it has a disproportionate amount of leverage.

For all the flaming rhetoric about how Wal-Mart exploits poor people fanned by union activists the company sure does a lot to keep prices on goods low so that poor people can actually, you know, afford to buy them.
I mean, we wouldn’t arugala prices to get out of hand or anything.

I'm a Grand Forks native and alumni of North Dakota. I want to be Rob Port when I grow up.

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  • Jimmy1970jam

    Yeah thanks Walmart. Of course since they are a major reason people in this country can afford less and less it would only make sense for them to “Roll Back” prices as the USA swirls down the toilet.

  • Bat One

    Walmart is “a major reason people in this country can afford less and less…?”

    Whatever school you lasted attended (9th grade???) owes you a refund. Even Krugman at his very worst isn’t this ignorant.

    • Glass

      They arent lowerimg prices to help the poor. They lower it to put the competition out of business. You need to research that before you support it.

  • Awfulorv

    When perhaps five, at the most, ten cents, of what you pay for that $2.87 box of  cheerios goes to the farmer, in ALL the stores I’ve shopped in, you have to axe yourself what is going on?  And check out the price of Kool Aid, through extrapolation, would you believe over thirteen dollars per lb?  And start checking those receipts right at the register, it’s your right, and I’m sure you’ll soon begin finding overcharges in their favor. Oddly enough, never in your favor, though.

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