We’re all familiar with the retail giant that is Walmart. While the chain started with a single store in 1950, today it is an international industry leader with stores across the world. Its meteoric rise to success has not come without controversy. Even in recent history, Walmart has been embroiled in charges of corporate corruption, employee abuse, predatory pricing and more. It’s clear that Walmart will stop at nothing to keep their margins high and their prices low.
The Walmart Business Model
Sam Walton opened his first store in 1950 with a very specific business model in mind. Walton decided to keep the prices in his store as low as possible. He knew that he could survive on far slimmer profit margins than his competitors as long as he made up for it with a high volume of sales. Since 1950, the Walmart business model has never changed.
Walmart offsets its thin profit margins by selling mass amounts of products. This also translates into Walmart’s relationships with its suppliers. Walmart throws its weight around to force its suppliers to continually lower their prices or risk losing their relationship with the retail chain. No matter the cost. For many suppliers, Walmart is one of their main revenue providers. There is a cost to keeping Walmart happy.
The result of this constant pressure to lower prices has resulted in:
- Supplier layoffs
- Decreased product quality
- Large scale outsourcing to foreign countries where labor costs are low and regulations are scarce
Time and time again, Walmart has proven it will cut corners to cut costs.
A Look at Walmart’s Finances
Is Walmart struggling for cash? Is it really necessary to take shortcuts to maximize their bottom line?
A look at their financial reports would indicate otherwise. In 2018:
- Walmart reported $500 billion in annual revenue.
- Their gross income for the year was more than $125 billion.
To put that into perspective, Walmart makes more money every year than most countries do.
If Walmart were its own country, it would be in the top 25 countries in the world for their gross domestic product (GDP), beating out countries like Iran, the United Arab Emirates, Norway and many more.
Walmart is not struggling for cash. This begs the question: why are they so focused on cutting costs to the detriment of their consumers and employees?
Profits Before People
The Walmart fervor for rock bottom prices has real world consequences. The Brooks Law Group is currently litigating a case involving a leaky roof at Walmart that the retail giant could have easily fixed. Instead, the roof was not fixed and a client is suffering because of it.
A leaky roof and a wet floor resulted in a personal nightmare for a 22-year-old girl. The leaky roof is now the cause of 4 surgeries and nearly $600,000 in medical bills. Again, this was caused by a company that makes more money than most countries do. Not only did Walmart leave their roof in disrepair which caused the injury and surgeries, a legal battle stretching across multiple years is required for the company to pay for the hardships it caused.
In another case, a Walmart left out a chair that had been recalled by the manufacturer as it wasn’t safe to use. Yet the chair was put out in the open for anyone to use in a particular Walmart. This also led to an injury.
Is saving a few dollars really worth the potential harm for both consumers and Walmart employees? Does the Walmart business model lead to putting profits before people?
Walmart Puts the Pressure of Plaintiffs
Walmart is no stranger to litigation. Every year, Walmart has thousands of lawsuits filed against it, many times for very similar issues as our own clients. Where there is smoke, there is often fire. It seems there is a clear pattern of injuries caused by Walmart across the country due to lack of training and building neglect.
Take for example a case from a few years ago in Virginia where a man was awarded $11,250,000.00 for an injury that occurred in a Walmart. The man slipped on a wet floor and was seriously injured. After receiving numerous fractures, the incident left the man with permanent pain and disability. Does that sound familiar?
One of the biggest issues in bringing a case against Walmart is the company’s deep pockets. Walmart has a long history of refusing to settle outside of the court system. Instead, they often opt for long, drawn out legal battles that can cause the injured party to be pushed into debt caused by medical bills. The company has more than enough to pay for the legal costs it incurs, and it serves as a deterrent for those considering bringing cases in the future.
Contact Brooks Law Group
Every year, thousands of lawsuits are brought against Walmart by its customers and its employees. It’s clear that there is a cost to cutting corners, and it’s not just cutting the prices offered to consumers.
If you or a loved one has been injured due to the neglect of a major corporation, you need experienced legal guidance. You need practiced Walmart injury attorneys. At the Brooks Law Group, we’ve spent more than 25 years fighting for the rights and compensation of our clients. Our attorneys and staff are dedicated to providing you with the best client experience possible from the moment you reach out.
Don’t let a major corporation prevent you from receiving the compensation you deserve. We’ll fight to hold those responsible for your injuries accountable. If you’ve been injured, Look to Brooks!
Call our offices at 1-800-LAW-3030 or fill out our online case evaluation form to start your journey to justice today.