Monday, October 12, 2009

The Walmart War


There's been an ongoing war over the proposed construction of a "Super Walmart" here in little 'ol Redlands. Those opposed point to Walmart's lousy employee pay and anti competitive pricing, and the proponents shout the glories of Walmart's low prices.

Here's my take.

I've always hated Walmart. The company has a particular blandness only a company founded and managed from Arkansas could create. Yes, its prices are cheap, because the products are cheap. Remember when Walmart touted its products as American made? Not any more. Years ago, Walmart destroyed many a middle American town by undercutting locally owned businesses who couldn't compete on price. So how goes it now?

What will a Super Walmart mean for Redlands? Other than a very large vacant box where the current store is located, not much. Here's why.

If Wallyworld disappeared from the planet in some sort of retail rapture, where would people turn for the things they used to buy there?

Foodstuffs -- big grocery chains like Albertsons and Vons
Electronics -- big electronic chain stores like Best Buy
Auto Parts and Repair -- big auto parts stores like Pep Boys and Auto Zone
Sporting Goods -- big sporting goods chains like Big 5 and Sport Chalet
Clothing -- big clothing chains, Target, Kmart, and Penney's
Health and Beauty -- big pharmacy chains, like CVS and Walgreens
Garden -- big box home improvement stores like Lowes and Home Depot

So... the common denominator here is the word "big"... Walmart competes in this market with other big chains, because there is no small business Walmart wants or needs to compete with any more. They're all long dead and gone.

Yes, we have our boutique stores serving select segments of the overall market in most (but not all) of these categories. But the real dollars these days go to the big nationwide shops. And of the list, only a few of them (grocery stores) pay a living wage, thanks by and large to unionization.

The war is over. Walmart and all the other big boxes have won. Independent business was wiped out years ago. The end.

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