Why Wal-Mart Can Be Good for Small Business

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1998 future open increasing stricter

jennaseeli of IA 10:59PM December 19, 2009

In America, any boy may become President and I suppose that's just the risk he takes.--Adlai Stevenson (1900-1965), U.S. political leader

halmfart of AL 6:48AM July 16, 2008

In theory, there is no difference between theory and practice. But, in practice, there is.--Jan L.A. van de Snepscheut (--1994), U.S. computer scientist/professor

uncody of AL 9:39AM July 15, 2008

All good points, but I have seen first hand what Goliaths like Wal-Mart can do to communities and yes - it has been good and bad.
It can be good when independents adapt and promote what big boxes simply can't - service and the feeling that the customer is 'known.' Either way, independents need a tool kit to thrive in today's marketplace.
Check out BizUnite at http://www.bizunite.com. We launch in July 2008. BizUnite's a great mix networking/collaboration AND cost saving programs (insurance, shipping, credit card processing, etc.) training, marketing tools, and the list goes on...

Sonciary Honnoll of NH 10:33PM June 29, 2008

A few years ago the state of Maryland passeed legislation requiring Wal-Mart to provide health care to its employee. The governor struck it down; the legislature overrode his veto; and then the courts struck it down again.
So it never came to fruition, but the aim of the legislation to require Wal-Mart to provide standard health care was commendable. Wal-Mart might give away a few dollars here and there to "placate" local gov'ts (it's percentage to charity is actually below average), but on the whole, workers in that local economy economy suffer.
If they work for Wal-Mart, they get a raw deal. If they work for another store in the area, the wages are driven down by Wal-Mart and they get a raw deal. It's a lose-lose.

Wake Up Wal-Mart of MD 3:52PM June 25, 2008

Over the past decade Wal-Mart has been blamed for the untimely deaths of hundreds of small merchants. I disagree. In my view it’s really more a question of suicide than murder. The grim reality is that most of these small retailers tried to compete directly with Wal-Mart on price (which no one can do), and killed themselves in the process. The smart retailers—and there are plenty—however, don’t see Wal-Mart as a direct competitor at all. Instead, they identify a customer who is more interested in quality, service, reliability, or any other factor than price. They reposition their business to serve those customers in a unique way, and they thrive. Today, retailers wait in line and pay premium rents to be near a Wal-Mart. Next time you drive by a Wal-Mart store, see if you can find an empty store nearby retail space.

Robert Gordman of CO 11:54AM June 25, 2008

The Post reporter interviewed the owner of a mall with an exotic pet store, a pancake restaurant, and a bank. Of course that mall felt no impact---it does not sell products that compete with Wal-Mart. I have also found in 15 years of talking with merchants, that they will NEVER tell reporters how their bottom line is doing, until the draw the shutters and close. The Post reporter told me this story was "local story only" but articles like this one show the danger of extrapolating from two or three ancedotal reports. It takes at least 2 to 3 years to see merchant impact. One study from Retail Forward in Ohio said two groceries will close for every one superstore that opens. Tom Mueller's studies in Iowa, as well as Ken Stone's, showed significant business losses. For proof, look at the change in market share that has taken place in the grocery chain store marketplace. Wal-Mart is the largest grocer now in America, taking share from Kroger, Albertson's and others. At the local level, the small merchants goes quietly out of business, while the IHOP and exotic pet store sees nothing harmful at all. The Post story was really just based on a couple of mall owners and merchants who have no idea what is going on in the larger community. Whether its independent book stores, or hardware stores, the independents have been hard hit by superstore chains. To suggest the Wal-Mart helps these competitors is like saying the rooster is responsible for the sunrise. See my story about Anderson, CA on the Newsflash page at www.sprawl-busters.com.

Al Norman of MA 7:13AM June 25, 2008

I am a Mentor Capitalist with 15 plus experience in start ups and turn a rounds. Over the years I have experienced first hand when ever large corporations like Wal-Mart, Costco and Home Depot come into a neighborhood it always has hurts the small business. Most of the time it hurts mom and pop so much they are forced out of business.

Dan of CA 8:06PM June 24, 2008

Check out this story, which ran yesterday - the same day as the Washington Post story. A little perspective on Wal-Mart's effect on local businesses and communities.
http://www.redding.com/news/2008/jun/23/john-wade-fought-the-wal-mart-and-the-wal-mart/
Buzz: John Wade fought the Wal-Mart and the Wal-Mart won [Redding Record Searchlight]:
They told John Wade you can’t fight Wal-Mart.
Wade, longtime owner of Ben Franklin Variety in Anderson, wouldn’t listen.
“They said close your store right now and don’t even try to fight them. I thought I’d duke it out with them,” the 80-year-old Wade said last week.
Wade was a member of the Anderson First Coalition, a group of residents who fought Wal-Mart’s plans to build a Supercenter in their city. The group lost and Wal-Mart opened its Supercenter in June 2006.
Unfortunately, Wade was no match for the world’s largest retailer. After 27 years, he will close his East Street store. His last day of business depends on when he can liquidate all his stock.
The building has been a store since the 1950s. Wade was in wholesale pharmaceutical sales before he got into retail.
“The day Wal-Mart opened, our business dropped and never came back — that’s been two years,” Wade said. “They have the same thing we do, and they have more of it and sell it for less.”
Wade has no regrets, saying he got healthy working retail.
“All we have to do now is find a job for our two employees,” Wade said.
for more info, check out:
www.walmartwatch.com

Eric of DC 3:49PM June 24, 2008