53 pages 1 hour read

Charles Fishman

The Wal-Mart Effect: How the World's Most Powerful Company Really Works - and How It's Transforming the American Economy

Nonfiction | Book | Adult | Published in 2006

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Chapters 4-5

Chapter Summaries & Analyses

Chapter 4 Summary: “The Squeeze”

Fishman writes that, in 1998, Wal-Mart began selling gallon jars of Vlasic pickles for $2.97. Vlasic representative Pat Hunn described the gallon jars to Fishman as one of Wal-Mart’s statement items (79). They used the pickle quantity and pricing to promote Wal-Mart’s alleged core values. In the late 1990s, Vlasic had no interest in building its brand around the gallon jars. However, their appearance on Wal-Mart shelves nationwide earned Vlasic a reputation that had positive and negative effects on the business, as the gallons both boosted and hurt Vlasic sales. Vlasic market manager Steve Young told Fishman that when Vlasic tried negotiating a higher unit price for the jars, Wal-Mart refused to budge. Consumers couldn’t eat the pickles fast enough, which led to high levels of waste. Fishman cites the Vlasic deal as an example of how Wal-Mart defies “the laws of supply, demand, and competition” (82). According to Fishman, this is an indication of the way in which Wal-Mart is thus a monopsony, or a corporation powerful enough to manipulate market prices.

Fishman states that he attempted to interview FedEx employees when he learned that they were Wal-Mart’s primary carrier, but his contact, Steve, backed out of the interview at the last minute.