By Rob Holbert
Managing Editor

It seems like everywhere I go these days, somebody’s talking about Wal-Mart, and they’re not just blabbing about how much you can save on granny panties, camouflage slacks or giant bags of Cheetos.

No longer is the announcement that a Wal-Mart is coming to town met with cries of “Yeeeeeeehhhhhaaaawww! Now I kin buy my clothes, groceries and tires in the same store!” These days there is narrow-eyed suspicion and a general feeling that something not quite Kosher is happening. (Actually, I’m not sure Wal-Mart sells anything Kosher.)

I still remember years ago when just a run-of-the-mill-non-super Wal-Mart opened in Pascagoula, Miss. People were excited. Hell, I was kind of excited, and I hate to shop. It was all there — motor oil, fishing poles, frying pans, sleeping bags and row upon row of laxative. Of course, this was before Wal-Mart was bitten by a radioactive spider and became super, thus enabling it to provide groceries, banking services and discount appendectomies. Once I got a load of one-stop shopping, with the hordes of people wandering aimlessly through the aisles, the nonsensical arrangement of goods and the nonexistent customer services, I quickly decided Wal-Mart was not for me.

Over the past 15 years or so, shopping at Wally World has become something akin to breathing — it’s just something everyone does. But the tide appears to be turning just a bit. Probably not enough to have the Walton family members shaking in their discount boots and contemplating the day they may have to eat Ol’ Roy dog food, but a turn nonetheless.

Just look at what’s happening in Fairhope. Alabama’s fairest city feels it is about to go under the boot. Wal-Mart has taken a position just outside the city limits and aims to drain the town dry. People are up in arms. Council members are trying frantically to figure out some legal loophole by which they can save their town — a futile effort against a foe that long ago figured out the most effective way to attach itself to a municipality’s jugular.

But the point would be moot if everybody felt the way I do about Wal-Mart. The fact is clear — most people like shopping there. Why, I don’t know. I’m sure much of it has to do with saving money, and Wal-Mart shoppers do save money — about $2,000 annually, according to some studies. So that must mean those of us who are against Wal-Mart are just a bunch of snobs who can afford to pay more for everyday goods and services, as well as laxatives and tires.

Not necessarily. There are also plenty of studies that show the emergence of Wal-Mart in one’s community will ultimately lead to the death of several local businesses. That may not seem important, unless you realize that it is local business that greatly determines the flavor of a community. I promise you, even the local tire shop has more character and pizzazz than the Wal-Mart tire shop. (OK, I’ll stop picking on the tire guys.)

It’s well documented that Wal-Mart is so big it can force suppliers to reduce their wholesale price, so Wal-Mart shoppers can get a discount they wouldn’t see anywhere else. That sounds like a winner for everyone, but let’s think a little more about what it really means. First of all, there is the assumption that all goods are overpriced to begin with. While that might be true of tires and laxatives (sorry), most businesses have competition and can’t afford to set their price points at some outlandish level because if they did, the competition would move right in.

Wal-Mart tells suppliers they must reduce their price if they’re going to be sold in the world’s biggest store. Naturally, most suppliers cave in. The result is a consumer getting a fantastic deal, the supplier struggling to make money and Wal-Mart keeping its profit margin in tact. Oh, and let’s not forget the Walton family continuing to move further and further ahead on the list of the world’s richest people. (If you combined the wealth of all the Waltons, it leaves roughly $5.35 left rattling around in the pockets of the other 6 billion people on Earth.)

There it is in a nutshell — Wal-Mart looks out for its customers and its profit margin, but screws its suppliers and, by extension, the local businesses that can’t even buy their products wholesale at Wal-Mart’s retail price.

The other nasty little part of this is that eventually, Wal-Mart’s suppliers are likely to end up pushing their business overseas because Wal-Mart strips away all of their profit. Getting the Chinese to make those overcoats and laxatives at 15 cents an hour becomes the only option.

If you love shopping at Wal-Mart, there’s probably nothing anyone can say to dissuade you. But keep in mind that Wally World is no friend to the community. They demand and get giant tax breaks to come into a city. If they don’t get what they want, they simply locate just outside the city limits and suck the municipality dry like some kind of discount vampire.

And let’s be honest, shopping at Wal-Mart is an ordeal. It’s a two-to-three-hour trip, even if you know exactly where the trench coats, claw hammers and tires are located. Time is money, and frankly I’d rather pay a little bit more so I can be home an hour earlier.

I hope there will come a day when I don’t drive past that Super Wal-Mart near I-65 and see 18 million cars in the parking lot, but I’m not holding my breath. Ultimately, only the consumers can stop the beast from gobbling up our communities by changing their buying habits.

Rob Holbert is Lagniappe managing editor. Contact him at rholbert@lagniappemobile.com.



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Damn The Torpedoes

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September 23, 2008
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