Recently I hear of more and more companies following the Sam Walton business model, and it worries me. I wonder if these titans of business ever studied basic Capitalist theory. I wonder what these business majors who run the corporate offices of major retailers learn at business school, because it certainly isn't how to run a store. I wonder when was the last time any of these great corporate people actually worked a sales floor. The answers to all of these questions are simple. 99% of the heads and corporate decision makers for retail companies have never worked in the stores and those that did got out as quickly as possible. They never stop to actually think about the real world applications of their little business models. They never stop to wonder if Sith Lord Walton's business model actually functions for their company (or at all), they just think about having a larger profit share.
I have worked in retail for over ten years now, at all levels and types. I can with great conviction state the Walton business model does not work. It can't. Now before you all complain about me not understanding the business world, I do have a college degree. I am an intelligent individual and have actually been on the front lines and can say this. For those of you unfamiliar with the Walton business model. it takes the viewpoint that employees are an excessive expense, so of course you want to get away with paying them as little as possible. Hire large numbers of people, then arrange shifts so that they are only 5-5.5 hours long, that way you only have to allow them a 15 minute break that the employee does not clock out for and is still on call to respond. Tie your Store Manager's bonuses and job to both how well the store does financially, and how well they can keep to the projected sales-to-payroll hours matrix. If the store is not making the projected sales figures, (made up by some suit in an office states away from where your store is) cut shifts. And finally, make sure to invert the Ford Principle. Instead of paying your employees enough to afford your product, make sure that what you pay them ensures that they can only shop with you.
My grandfather used to say "Abraham Lincoln may have freed the slaves, but he forgot the shopkeepers."
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