Part of the reason Wal-Mart has become America’s biggest retailer is because of its rock bottom prices, many of which were made possible by sourcing products overseas, especially in China, where products can be produced far more cheaply than they can be here.
Last year, the company announced it would be spending more than $250 billion over the next decade on domestically produced products. That’s something the just makes good business sense, Michelle Gloeckler, Wal-Mart’s executive VP for consumables and US manufacturing lead, said during an address last month at the Women’s Wear Daily Apparel & Retail CEO Summit.
“It makes sense to produce goods closest to the point of consumption,” Gloeckler said. “We know that energy costs in the US are not only economical and inexpensive, but it’s incredibly dependable. Many of you have traveled around the world and you know how important that is. This part shows that the US can indeed compete with many countries around the world.”
Gloeckner added that there has been a trickle down effect for the company’s pro-American purchasing plan.
“When it comes to our investment in US manufacturing, we know it’s not only the right thing to do, it’s good for business, it’s good for communities, and it’s good for our customers,” she said. “In fact, the Boston Consulting Group predicts that our investment of $250 billion over the 10 years will create one million jobs in both the manufacturing sector and the service-providing areas that surround that.”