The Wal-Mart effect.(Editorial)

WAL-MART STORES INC. continues to surprise even those of us who never bought into the crazy idea that it was the Great Satan unleashed upon the sainted mom-and-pop retailers in order to crush the spirit and culture of America.

What surprises is that Wal-Mart, having squeezed so much waste out of the merchandise supply stream, has unleashed the power of its overwhelming size on other types of waste.

If the only thing Wal-Mart had ever done was knock the price of common generic prescription drugs down to $4 a month, a special place would certainly be reserved in retail heaven. Despite deserved criticism of its benefits plan in years past, Wal-Mart has now endorsed the idea of mandatory employer contributions to health insurance.

We'd prefer to see the United States break away from the model that puts the onus of health insurance on the employer. Still, we admire Wal-Mart for a notable break with other retailers--which certainly has been part of the Wal-Mart culture--and for its insistence that any health care reform incorporate stringent cost containment.

Last week, the Bentonville giant revealed yet another line of attack on waste: the creation of a "global sustainability index" to help consumers make more informed choices about the products they purchase.

The new "green" labeling has been compared with nutritional labeling, although we suspect that agreeing on standards for greenliness will be infinitely harder. And heaven knows the nutritional labels haven't cured America's dietary ills.

But those labeling requirements have certainly forced food manufacturers to give careful consideration to every ingredient, every calorie, every nutrient in order to be responsive to the vociferous consumers who care deeply about those things.

So it will be with sustainability labeling. In the short term, and maybe always, making more sustainable sourcing and manufacturing choices will add cost--anathema to Wal-Mart in the past. But if consumers can see what they are paying for--a greener product--many may find the trade-off worthwhile.

This is a long process, of course, and it may not work at all. But Mike Duke and his team keep surprising us and challenging us all to think of new, better and cheaper ways to deliver value.

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