Mark Gardiner was an award-winning Copywriter and Creative Director, the VP of Marketing at one of Canada's best-loved retail chains, and ran his own ad agency. Then, he took a $12 per hour job at Trader Joe's, and discovered how one of America's most secretive companies built the strongest brand in its category, without ever spending a cent on brand advertising. Want to create a cult of customers devoted to your own brand? Then you need to read "Build a Brand Like Trader Joe's"
Wednesday, November 21, 2012
Retail retaliation: Walmart faces Black Friday strike
Before the Thanksgiving turkey leftovers have cooled, the official Christmas shopping frenzy will begin on 'Black Friday'.
This year, Walmart faces a potential disruption as many thousands of its workers are determined to protest their treatment there. I don't want to read too much into this particular 'strike' (it's not a real strike, Walmart's not unionized) but it's tempting to see this as, perhaps, the beginning of an uprising against the low wages that attend Walmart's low-price obsession.
Ironically, when I was researching Build a Brand Like Trader Joe's I came across ample evidence that suggests that Walmart's profit would actually increase if it paid its workers more. Trader Joe's is anti-union too, but it does pay Crew Members a living wage. Right now, offering starting salaries in the $11-12/hour range and easy access to a rudimentary health insurance program allows Trader Joe's to pick and choose the best retail employees. I'd be willing to bet that Trader Joe's per-square-foot sales and profit are at least as good as Walmart's.
Walmart won't kowtow to its workers' demands right away -- in fact, I expect they'll retaliate against anyone they perceive as fomenting this conflict. But I have the feeling that the American shopping public may be on the verge of an epiphany -- egged on by strike supporters like MoveOn.org and the 'occupy' movement. Will shoppers finally realize the impact that Walmart's relentless drive for low prices has had on American manufacturing jobs, middle class wages, and even popular taste?
If the shoppers take the workers' side, Walmart will have to change the way it does business. Trader Joe's is a great model.
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