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Wal-Mart won't destroy your town - Beacon Blog

Wal-Mart won't destroy your town

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BY MIKE CETERA

Those who love to hate Wal-Mart can recite a littany of reasons why the world's largest corporation is bad for the communities it plops its big-box stores into; some of those arguments are hard to refute.

But with Wal-Mart opening its newest Supercenter in Aurora today, I found another town's story interesting.

It seems Wal-Mart doesn't, in fact, kill off the competition.

When Aurora was looking to build a store at what is now the planned Aurora Police Department headquarters, one opponent had this to say: "There used to be a neighborhood grocery store on this side of town. Once Wal-Mart moves in, nothing else will."

Not true, according to "a nationally regarded expert on Wal-Mart." (via Al's Morning Meeting)

Studies in Iowa, Mississippi and Texas reveal that that average reduction in sales for existing grocery stores in the first year of competition with a Supercenter will be around 10 percent.

But (Iowa State University professor Kenneth) Stone said two of Carroll's (Iowa) grocery stores have strong track records when it comes to competing against Wal-Mart.

"Usually it's the smaller independents that are hurt worse than the bigger stores," Stone said. "Frankly, I think Hy-Vee and Fareway have done a good job of competing against Wal-Mart. Those two chains in particular have figured out a way of beating Wal-Mart at their own game."

(Jack Schultz, author of the book "Boomtown USA") ... who lives in Effingham, Ill., said that city's local supermarket saw sales fall by about 20 percent in the first year of competition with a Supercenter.

"The owner had to let some people go and regroup," Schultz said. "But, he survived and his sales are higher today than prior to Wal-Mart coming to town. He now says that he gets people from a larger area than he got before."

Stone said any efforts by city councils or other local leaders to block a Supercenter siting are counterproductive.

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3 Comments

As soon as the price of gas really starts going up, the "rolling warehouses" of Wal Mart are going to go the way of the Bush administration. The only reason these places can exist is that energy is still relatively cheap.

Same for the strip mall big box places.. do you think that a dump like the "Aurora Outlet Mall" is still going to be around when it costs Mr and Mrs Consumer and the little Consumerettes more in fuel for the Belchfire DeLuxe than they supposedly saved on the "bargains" they found? hmm..don't think so.

There is overwhelming evidence of what this destructive, nearsited mentality has done to the way people live in the United Parking Lot of America. Local food? yep..all the fast food you want!..Local farms? who needs 'em?..build us another subdivision..local merchants who sell useful products? hey we got us TWO Walmarts and an OUTLET MALL! come Sunday, pile in the SUV, drive us 10 miles, and pick up another salad shooter.

While it didn't get much play in the Iowa Independent story, the comments by Mr. Fishman regarding wages and benefits are another major reason people fight Wal-Mart.

So while I shop there occasionally, I still feel that as the nations largest employer, Wal-Mart could do more to set the bar higher. I also dislike their union busting activities and censorship of music and books sold in their stores.

On the other hand, they are a classic American business story and in many regards, have done a lot of good in America...I loved Sam Walton's autobiography.

Very interesting read. It's a thin line between love and hate for me....

I still find myself in wal-mart twice a month. Which is better than my mom, who goes at least twice a week.

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