neologism
In linguistics, a neologism (; also known as a coinage) is any newly formed word, term, or phrase that has achieved popular or institutional recognition and is becoming accepted into mainstream language. Most definitively, a word can be considered ...
referring to U.S.
discount department store
Discount stores offer a retail format in which products are sold at prices that are in principle lower than an actual or supposed "full retail price". Discounters rely on bulk purchasing and efficient distribution to keep down costs.
Types (Unit ...
Walmart
Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores in the United States and 23 other ...
with three meanings. The first use is similar to the concept of
globalization
Globalization is the process of increasing interdependence and integration among the economies, markets, societies, and cultures of different countries worldwide. This is made possible by the reduction of barriers to international trade, th ...
and is used pejoratively by critics and neutrally by businesses seeking to emulate Walmart's success. The second use is pejorative, and refers to the homogenization of the retail sector because of those practices. The third use is neutral, and refers to the act of actually shopping at Walmart.
Background
The term "Walmarting" derives from
debate
Debate is a process that involves formal discourse, discussion, and oral addresses on a particular topic or collection of topics, often with a moderator and an audience. In a debate, arguments are put forward for opposing viewpoints. Historica ...
over Walmart's
business
Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for ...
practices, which apply optimization concepts from
logistics
Logistics is the part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the Consumption (economics), point of consumption according to the ...
, purchasing and
finance
Finance refers to monetary resources and to the study and Academic discipline, discipline of money, currency, assets and Liability (financial accounting), liabilities. As a subject of study, is a field of Business administration, Business Admin ...
to achieve and maintain low prices. More generally, "Walmarting" refers to the spread of Walmart's business model to other big-box retailers throughout the American economy, and the national or global implications of that proliferation.
The Walmart business model includes: marketing to a broad "family" demographic that includes rural as well as urban, ethnic minorities as well as mainstream, people without a higher-level education, lower- or working-class consumers, as well as the middle-class; one-stop shopping based on a large selection of goods and services; the use of intense price-competition and high-technology inventory management to stimulate and satisfy end-user demand;
economies of scale
In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of Productivity, output produced per unit of cost (production cost). A decrease in ...
based on big-box delivery of consumables; supply-chain management that requires producers to reduce their costs significantly to find an outlet for their goods; employment of store workers for low wages, few benefits, and little
job security
Job security is the probability that an individual will keep their job; a job with a high level of security is such that a person with the job would have a small chance of losing it. Many factors threaten job security: globalization, outsourcing ...
Connecticut Law Review
The ''Connecticut Law Review'' is a quarterly law review produced by students of the University of Connecticut School of Law. It publishes more than 1,000 pages of critical legal discussion each year and is managed entirely by a student board of e ...
'', 39 (4):1785–1803 Title page /ref>
Critics have claimed that the domestic impact of Walmarting is to force local businesses into bankruptcy because they are unable to compete with Walmart's "low, low prices", and to reduce the standard of living for local workers who lose their jobs, then must accept work at Walmart levels of compensation. Similarly, some critics argue that the international impact of Walmarting is to force American suppliers to rely on low-wage foreign producers for goods, leading in turn to an unfavorable national balance of trade and contributing to the growth of the American temporary and low-wage employment sector.
Walmarting differs both from "
Disneyfication
In the field of sociology, the term ''Disneyfication'' describes the commercial transformation of things (e.g. entertainment) or environments into something simplified, controlled, and 'safe'—reminiscent of the Walt Disney brand (such as its med ...
" and "
McDonaldization
McDonaldization is the process of a society adopting the characteristics of a fast-food restaurant. The McWord concept was proposed by sociologist George Ritzer in his 1993 book '' The McDonaldization of Society''. McDonaldization is a reconce ...
", though there is a resemblance. "Disneyfication" and "McDonaldization" emphasize the "fun" of theme park attractions and fast food dining, while Walmarting markets itself mainly upon shopping for savings. "Disneyfied" businesses embellish a particular theme as imagined history, while "McDonaldized" businesses rationalize a specific good or service. By contrast, "Walmarting" plays upon a single aspect of shopping – getting a bargain – and applies it across the board to a broad range of goods and services available in its "super-stores".
The "Walmarting" concept has been applied in various industries. The external links below cite examples of its usage for the first two definitions.
India
India has experienced a similar phenomenon of Walmartization to the United States, with significant negative ramifications for its economy.
See also
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Big box store
A big-box store, a hyperstore, a supercenter, a superstore, or a megastore is a physically large retail establishment, usually part of a chain of stores. The term sometimes also refers, by extension, to the company that operates the store. The ...
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Category killer
A category killer is a retailer, often a big-box store, that specialty store, specializes in and carries a large product assortment of a given category. Through their wide merchandise selections, low pricing, deep supply, large buying power, and m ...
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Cocacolonization
''Cocacolonization'' (alternatively ''coca-colonization'') refers to the globalization of American culture (also referred to as Americanization) pushed through popular American products such as the soft-drink brand Coca-Cola. The term is a p ...
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Criticism of Walmart
The American multinational retail chain Walmart has received criticism from parties such as labor unions and small town advocates for its policies and business practices.
Criticisms include charges of racial and gender discrimination,Kabel, ...
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Wake Up Wal-Mart
Wake Up Wal-Mart was a campaign founded by United Food and Commercial Workers Union. It was based in Washington, D.C., and was often critical of the business practices of Walmart, the world's largest retailer, and the largest private employer in ...
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Whirl-Mart
Whirl-Mart is a culture jamming tactic aimed at retail establishments, typically superstores.SEIU homepage