November 26, 2004

Researchers say U.S. Military Personnel are Stupid

Not really. But they did say the military families go to Wal-Mart, even when it is more expensive for them to do so:

JACKSONVILLE, FL -- Researchers say military exchange stores are losing money to retail giant Wal-Mart.

They say military exchange stores are actually about 9% cheaper than Wal-Mart, and there is no sales tax.

Despite the lower exchange prices, many military families still go out of their way to shop at Wal-Mart.

The company says it builds near military bases because so many military families want to shop at its stores.

Some military exchange stores are considering combining back office operations to be more competitive with Wal-Mart.

IMHO, without reading the original report, I'd say that this is not a good summary of the research. Either WM offers goods that the military exchange doesn't, or the measure of savings is incorrect. Simply put, people are not that stupid.

Posted by Kevin on November, 26 2004 at 11:45 AM