Meanwhile, the competition howls about Wal-Mart for good reason -- because it almost invariably gets out-hustled, out-discounted and altogether out-retailed. FAO Schwarz, the pretentious toy seller, has nearly been bludgeoned out of business by Walton's creation. Such is the cost of selling over-priced toys in the age of Wal-Mart. Yes, the killer store snuffs out charming local retailers, but most consumers simply value convenience and low prices more than charm.
All across America, shoppers have voted with their cash and charge cards. Almost a third of all disposable diapers and hair products are purchased at Wal-Mart. No other store sells more groceries, toys or furniture. This is a boon for lower-income Americans who spend a disproportionate amount of their income on retail goods. As a Federal Reserve economist has said, "Wal-Mart is the greatest thing that ever happened to low-income Americans."
The store is also part of the wondrously flexible and various American job market. "The Europeans sniff at our job creation," CATO Institute economist Brink Lindsey tells Nordlinger, "while their job market is stagnant. They say, 'Oh, America just has Wal-Mart-type jobs.' Actually, the percentage of managerial and professional jobs in our country has climbed steadily. Yes, we have a lot of low-end jobs, but we have a lot of young people and older people in our work force, unlike Europe. There, they don't let people get hired, they don't let industries move fast, they don't create jobs."
If Wal-Mart seems unstoppable, there is one force that will be its undoing, and it's not angry protests. Instead, it is the market. Eventually, some retailer will be more nimble and cunning than even Wal-Mart, and it will get -- as all businesses in America do -- its own capitalist comeuppance.