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Yes, this is a very interesting discussion.

It is extremely difficult to separate the issues of monopoly, globalization, business ethics, small town economic problems, and worker's rights, in the context of WalMart. On one hand there is a visceral hatred of WalMart because it is mostly utilized by low class fat rednecks and is run by a bunch of unethical Arkansas monopolists, and on the other hand there's a fundamental belief among many Americans that capitalistic business operating under reasonable government regulation is the best way to run a country.

The biggest problem I have with the discussion is that in my personal very limited experience, I have not see WalMart ruin small businesses. On the contrary, the traffic pulled in by these big box stores (Home Depot is another example) seems to result in a surrounding halo of small specialist shops--restaurants, muffler repair, furniture, pornography, music, etc. And it is certainly true that there are people working there who would have a hard time finding a job elsewhere.

That's what I've seen, at least, but it's hard to sort it all out.

by asdf on Wed Jan 25th, 2006 at 11:00:37 PM EST
[ Parent ]
According to this PBS link, as of May 2000:

Wal-Mart stores are often the size of four or five football fields - huge in scale compared to many of the small communities that they neighbor. Criticized for deserting stores that under-perform, Wal-Mart has left behind more than 25 million square feet of unoccupied space across the country

And they also have this quote:

People are surprised that Wal-Mart would even want to locate a store at Ashland, with another one 10 miles away. But that's part of the Wal-Mart saturation strategy. They place their stores so close together that they become their own competition. Once everybody else is wiped out, then they're free to thin out their stores. Wal-Mart has 390 empty stores on the market today. This is a company that has changed stores as casually as you and I change shoes.


Maybe we can eventually make language a complete impediment to understanding. -Hobbes
by Izzy (izzy at eurotrib dot com) on Wed Jan 25th, 2006 at 11:11:06 PM EST
[ Parent ]
Yes, that is apparently one of their strategies. One way to look at it is that they are subsidizing the construction of new buildings for Home Depot!

But that's not the same as putting small businesses out of business...

"Critics of Wal-Mart and some academic studies, particularly out of the University of Iowa, claim that Wal-Mart displaces locally-owned stores resulting in the reduction of locally-owned corporate assets and real estate, and the destruction or displacement of higher paying jobs. Other studies, including several recently from the University of Missouri, have claimed that Wal-Mart stores either do not have negative impacts or have been found to positively impact a community by effecting lower prices, increased employment, and increased establishment counts."
http://en.wikipedia.org/wiki/Wal-Mart

Obviously this topic is so controversial that one may question the accuracy of the Wikipedia article...

by asdf on Wed Jan 25th, 2006 at 11:26:39 PM EST
[ Parent ]
That would be the same U of Missouri of which Sam Walton is the most illustrious and famous graduate?

"In September 1992, Wal-Mart founder Sam Walton contributed $3 million in scholarships to the. University of Missouri-Columbia."  (www.centerforethics.org/Walmart.PDF)

And if you think that large friendly donations to educational institutions couldn't possibly result in nice warm fuzzy publications about the donor's family and interests, then you ain't been around academia (in the US anyway) for long :-)

The difference between theory and practise in practise ...

by DeAnander (de_at_daclarke_dot_org) on Thu Jan 26th, 2006 at 02:07:36 AM EST
[ Parent ]
The U of Missouri studies I've found were done by Prof. Emek Basker -- one of them for a Wal-mart conference.  Even these results were mixed.  From Business Week -- Some Uncomfortable Findings For Wal-mart

Maybe we can eventually make language a complete impediment to understanding. -Hobbes
by Izzy (izzy at eurotrib dot com) on Thu Jan 26th, 2006 at 02:42:29 AM EST
[ Parent ]

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