12.12.2006

Unfettered Access to Exploitive Low Costs

Wal-Mart move adds to retailer staffing woes by going to an always open model. Wal-Mart is trying to capture as much of the holiday retail market as possible (which I cannot fault them for) but they're doing it without considering the effects it will actually have. Staffing a store for 24 hour a day access isn't cheap because many have to be paid extra to do so and the sales numbers are, generally, pretty low. And really, who goes Christmas shopping at 4 in the morning?

The risks and costs associated with the 24 hour model are going to outweigh whatever incrementally higher sales they make. It would be more sensible to extend hours rather than stay open all night. But sensibility and Wal-Mart haven't met in a long, long time.

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