Bentonville, AR. Wal-Mart Stores in Poor Communities Have Poor Customer Service
A new study reported by the Business Insider says that Wal-Mart stores located in poor communities get weaker customer reviews than Wal-Mart stores in higher -income areas. Stores in Black and Latino neighborhoods get worse customer reviews than in White neighborhoods.
Adam Reich, an assistant professor of sociology at Columbia University, went through 35,000 YELP reviews of Wal-Mart stores. Racial and low income communities gave Wal-Mart lower customer satisfaction scores. Reich says Wal-Mart deliberately understaffs stores in these minority and low-income areas.
"Wal-Mart is the largest retailer and largest employer in the world; moreover, it has consciously branded itself as a champion of and boon for disadvantaged communities," Reich wrote. "Its underinvestment in these communities is thus particularly notable."
Wal-Mart makes a bigger profit at the low-rated stores because of reduced staffing patterns--- but such stores’ profits come at the expense of good customer service.
Reich says Wal-Mart should hire more employees at stores in low-income communities of color, and improve wages and working conditions for its employees.
Not surprisingly, Wal-Mart called the new study “flawed.”
What you can do: To read the full Business Insider story about this new study, go to: