The Love-Hate Relationship Continues

Walmart and I have an odd relationship. For the last several years I very rarely, in fact almost never, shop at a Walmart or Sam's Club. I am not a Walmart shopper very much by conscience choice.

On one hand I am disgusted by the lead role Walmart has played in hammering down prices to the point that way too many have become modern slaves providing cheap labor for a beast (the American consumer) that cannot be quenched. Direct and indirect environmental impacts are atrocious, not to mention the company's highly questionable approaches to fair labor and equal rights practices.

In general, I also do not like the power Walmart wields over suppliers of consumer products. A consumer products company with a mass product would be committing economic suicide if their products that did not meet with Walmart's approval.

However, tremendous power can be used for both good and evil. Walmart did recreate the entire American food industry supply chain creating a much more efficient system. Although the arrival of a Walmart drives many independent retailers out of business, Walmart's arrival also brings a greater variety of affordable products to communities that previously had very limited choices.

Walmart is also making strides to "green" their stores. They are driving the creation of technologies and products that will allow other retailers to follow suit.

Now, the airwaves are buzzing with the announcement that within five years Walmart pledges to offer a greater assortment of healthier foods including more affordable fresh produce. Once again, I find myself applauding their decision while simultaneously holding my breath waiting for the other shoe to drop.

I admire their commitment to support First Lady Obama's campaign to better America's eating habits, especially that of children. However, Walmart does nothing (especially not a commitment this large) that does not promise healthy profit returns. If they can make money, help Americans to eat healthy diets and honor moral approaches to doing business, I would be thrilled. I must confess, however, to having my doubts.

This post is by no means meant to accuse them of doing things that they have not done yet. However, having watched Walmart for quite a number of years now, the following are some of the potential issues I see.

1. "For instance, Walmart has identified "key product categories," or thousands of foods sold by both national manufacturers and Walmart's house brand, that the company says could be reformulated to be healthier. The goal is to reduce the sodium content in foods such as deli meats and salad dressing by 25 percent by 2015." (cnn.com, January 20, 2011)

A 25% reduction in obscenely high sodium levels is a start, but will not necessarily result in a healthy food product. Be mindful of the buzz. One frozen dinner that has two days worth of sodium will hardly be healthy after a 25% sodium reduction.

2. "Added sugars in various sauces, fruit drinks, or dairy items will be reduced by 10 percent, while all trans-fats will be completely removed from packaged food items." (cnn.com, January 20, 2011)

How about no added sugars in things where sugar should not be added...like canned diced tomatoes? The inclusions of transfats is simply ridiculous.

3. "The company estimates it could save Americans $1 billion a year on fresh fruits and vegetables if its plans are successful." (cnn.com, January 20, 2011)

Watch this one closely. I can tell you that today's produce industry is awfully lean. To keep prices low, the industry already uses illegal labor, breeds Frankenstein-like hybrids that are tasteless and often uses pesticides and fertilizers that are frightening to think about.

I will be curious as to exactly how they plan to lower costs further. There is no way Walmart will agree to accept lower profit margins. Again, I do not want to accuse Walmart of something they have not yet done, but there will be incredible temptation for produce suppliers to do what they have to do to either win or maintain Walmart as a customer.

Although I do not know of cases where Walmart directed suppliers to behave in immoral manners, I do know that Walmart is quite good at shielding themselves from the facts. They most often do not care how suppliers are able to give them the wholesale prices they need. Both suppliers and Walmart have to make a profit, so the money has to come from somewhere. Agriculture workers and food safety practices are the two areas most likely to take a hit.

Hopefully, Walmart is pure in spirit as they make this move. But, we need to pay attention and vote with our pocketbooks.