Sticks and Stones May Break Your Bones But It's Words That Really Make the Headlines

A "Little-bitty Cracker Corporation From Arkansas"



I just returned from a brief late-summer getaway to the Ozarks.  On day one we visited Bentonville, Arkansas, a prosperous community of 36,000+ souls in northwest Arkansas. One reason for its prosperity is that it is the headquarters of Walmart, world's largest retailer.

A news article regarding Walmart caught my attention during our visit.  The Rev. Graylan Hagler, arguing in favor of Washington D.C.'s proposed Large Retailer Accountability Act, referred to Walmart as "a little bitty cracker corporation from Arkansas."  Rev. Hagler is upset because Washington, D.C. officials are balking at supporting the LRAA which mandates employers with revenue of over one billion a year pay $12.50 an hour to employees rather than the $8.25 per hour minimum wage that applies to all other retailers. 

I have two questions for Rev. Hagler:

1.  If you consider Walmart "little bitty", what do you consider large? and,

2.  Exactly what is a "cracker"?

Walmart had sales of 446.95 billion dollars in 2012.  Love Walmart or hate it, "little bitty" it's not.  And it didn't get to where it is today by paying 50% higher wages than its competitors.  It got there with low prices, high volume and a lot of hard work.

While in Bentonville we visited the Walmart museum/visitor center, located on the square in what was once a five & dime store owned and operated by Sam Walton.  Sam's first foray into marketing actually took place in Newport, Arkansas but he moved his business to Bentonville when his landlord, P.K. Holmes, refused to renew his lease.  Otherwise, Newport, Arkansas might have been Walmart's home office INSTEAD of Bentonville.  I think Bentonville should erect a statue of P.K. Holmes in gratitude for his decision to force Sam Walton out of Newport and into Bentonville.

During my visit to Walton's Five & Dime/Museum/Visitor Center in Bentonville, I learned several things about Mr. Walton:

1.  Though born in Kingfisher, Ok., he attended Jr. High in Shelbina, Mo.  While in the 8th grade in Shelbina Sam became the youngest Eagle Scout in Missouri history.

2.  He graduated from Hickman High School in Columbia, Mo., where he was voted "most versatile boy."

3.  He graduated from M.U. as "permanent president" of his class with a degree in Economics.

4.  He liked Ford trucks.  His 1979 F-150, dents and all, is on display in the Walmart museum.  When asked why he didn't buy something a little fancier, Sam replied "what am I supposed to use to haul my dogs around in, a Rolls Royce?"



Though I'm sure Rev. Hagler has the well-being of his fellow D.C. citizens at heart, he might want to consider whether Washington, D.C. is better off with Walmart paying the same minimum wage as every other retailer or not paying any wages at all. If the Large Retailer Accountability Act passes I suspect it may subsequently become known as the Large Retailer Relocation Act.

As for the term "cracker", I doubt that  Rev. Hagler mean't it as a term of endearment. Since I think people are way too sensitive these days, I am willing to overlook his ill-chosen adjective.  At least he didn't preface it with "creepy-ass". 

Sam Walton learned a valuable lesson when he was run out of town in Newport.  You can read "the rest of the story" at  http://hbswk.hbs.edu/item/2375.html

As Sam Walton knew, "Customers vote with their feet".  If they aren't treated right they go some place else to shop.  On display in the Walmart museum is a fishing rod that was returned because it "didn't catch fish" and an outdoor thermometer that was returned because "it never has the correct time".

If the Large Retailer Accountability Act passes in Washington, D.C., Rev. Hagler and his flock may learn that corporations vote with their figurative feet as well.  Operating in the red may be a way of life in Washington, D.C., but making a profit isn't optional for businesses, cracker or not..