Is Wal-Mart just a "reseller"?


After just reading this commentary by Seth Jayson over at the Fool, it got me thinking -- is Wal-Mart just a distributor or reseller? What value does Wal-Mart add to the customer equation besides being a clearinghouse for customer goods and everyday staples? While there is sure to be many varying answers and opinions to that question, I'll venture one based on my interactions with the company in a former retail interaction I had with them.

Wal-Mart's sole value-add to the customer equation is "low price for the customer, at all costs". Yes, that statement is sure to be picked apart by some people -- and that's alright, obviously. If Wal-Mart offers the lowest price (or even that perception through marketing efforts), more shoppers on a tight budget will shop there -- for groceries, tires, camping tents, clothes and TVs. With sales volume, Wal-Mart will slowly try to find a higher-margin product mix, over time, to boost revenue along with store growth. It's in the midst of doing this now, of course.

But, beyond being a "warehouse" that basically sells goods as a reseller for many companies across the globe -- with China thrown in for good measure -- what other value is there to the Wal-Mart existence? I've seen a wide swath of comments on Wal-Mart recently on the pros and cons of shopping there and working there. So, here's another chance to get your voice heard -- what is Wal-Mart's intrinsic value to the world beyond the "lowest price" mantra? Is there one or are there many reasons? If you're a WMT investor, customer or employee, chime in below and let me know what you think.

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