Retail Giants - Can We Afford Their Benefits?

Retail Giants - Can We Afford Their Benefits?

Introduction

It is quite certain to say that now days the economic conditions are not very favorable all around the globe. This is evident from the increasing rate of inflation and unemployment. Due to poor economic conditions and high prices, the purchasing power of the customers is drastically influenced. Customers always look forward and prefer good and affordable deals while shopping. Similarly, customers of big retails stores, for example Wal-Mart and Target always prefer and look for cheaper deals. But on the contrary these customers are least expected to pay any attention to the influence caused by these deals on the employees benefit and conditions. It can be said without any doubt that these two giants, hold most of the market share and have ample of loyal customers in every market they operate, but it is important to understand that one of the main reasons for the growth in their market share is the cheap and affordable deals offered by these two giants.

Discussion

Wal-Mart is one of the most famous low-cost retail organizations and consists of 1.8 million sales associates and 6400 stores worldwide. The enormity of Wal-Mart's corporate size and their influence and impact on the retail world is unparalleled (Marquard, 2006). On many occasions it has been confirmed by Wal-Mart that they tend to offer the lowest prices to the customer, while providing higher returns on investment to all their stakeholders. On the contrary Target was formed in 1962 as a department of another store known as Dayton. The main demand that led to the formation of Target was proper management and selling of goods. Initially their market share in the total market was due to the selling of national brands at low and discounted prices. They also had a competitive edge over its competitors due to their increasing adoption of new technology for example electronic cash registers their own credit cards and electronic scanning etc.

Benefits Offered By Target and Wal-Mart

The regular salary payment represents only a portion of the income that an employee receives in many companies. Wal-Mart offers benefits to all workers in addition to normal salary payment. The benefits of regular Wal-Mart completely cover what the employee expects. Since the benefits to workers freshmen including flexible scheduling and paid training to more extensive benefits like health insurance and retirement plan known as 401 (k) (www.walmart.com). Wal-Mart offers a wide variety of potential benefits to their members working. Wal-Mart offers several health and welfare benefits for employees who are eligible. The largest portion of the benefits of working at Wal-Mart exists in the form of health insurance. Wal-Mart associates can choose from a wide variety of coverage including a reimbursement account and a savings account for their health insurance. These health benefits are unlimited, dependent coverage until age 25, and $ 4 payment for over 2,000 generic prescriptions.

The health and wellness benefits of Wal-Mart, apart from traditional insurance, including dental insurance, life insurance and ...