Friday, March 13, 2009

Supermercado de Walmart: An example of how capitalism innovates.

The Financial Times reports that Walmart plans to open its first stores this summer focused on the Hispanic market in the USA. This provides an excellent example of the innovation and flexibility of capitalism to meet the needs of its customers.

No socialist enterprise would ever create entire businesses to serve its customers better. One size fits all in socialist enterprises. One need only ask whether the Post Office would develop its locations in Hispanic communities to better serve the clients. Undoubtedly, they would not do so.

The report indicates that the signs, store layout and product lines will better meet the needs of the local Hispanic customers. The store employees will be bilingual.

Of course, an equally important aspect of capitalism works here. If customers do not find Supermercado de Walmart meets their needs as Walmart assumes, they will not trade at the stores and they will not make sufficient profits. Walmart will close the stores or convert them to the successful Walmart business model.

If the Post Office somehow built an Oficino de Correos for an Hispanic community, it would remain in operation regardless of any lack of support from the community.

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