Wal-Mart's Pickle-Mopper

Like most people, I was delighted at last week's announcement that Wal-Mart is raising its base wage from $7.25 an hour, the current federal minimum, to $9 this year and $10 next year. But I have a strong suspicion that this good news will come with a price. No, I don't mean Wal-Mart is going to have to significantly boost its well-advertised "everyday low prices." That may happen, to a degree, but prices for most of the goods it sells are subject to considerable competition. I don't think the chain's management intends to sacrifice its hard-earned place on the retailing value spectrum. I believe the real cost of Wal-Mart's move is going to become apparent in a year, or three, or maybe five, and it will come in the form of substantial cuts in the number of people who work there. Wal-Mart will offer better-paying jobs, but not as many jobs as it offers today. Let's look at some numbers. Wal-Mart said about 500,000 employees will be directly affected by the changes in its salary scale, which comes out to close to 40 percent of the chain's 1.3 million American employees. (The company has an additional 900,000 workers overseas.) Its worldwide sales totaled $473 billion in the fiscal year that ended in January 2014, of which U.S. sales were $279 billion. Globally, each Wal-Mart employee accounts for $218,000, while each American employee represents close to $364,000 in sales. Compare this with Amazon, zQFPdMsM
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