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In Defense Of Wal Mart And Before I get e-mail peppered with all sorts of colorful descriptive adjectives regarding the content of this article, let me make a few things clear before you read any further. l am not a cheerleader for Wal-Mart, nor do I hold stock in Wal-Mart or any big box retailer. Likewise, I am not employed by Wal-Mart or any large retail operation. Honestly, I would not like the soul crushing dogma that you have to endure in order to live the life of a corporate curmudgeon. If you are employed by the retail industry and find contentment from your job, then consider yourself lucky. Most people working for large corporate entities today, rarely get much personal or monetary satisfaction from their working lives. For any individual or business that has been harmed by the juggernaut that "Sam built", my condolences and sympathy. This article is not intended to highlight the bad labor practices of any popular retail chain or to debase Wal - Mart corporate policies. If you perform a "Google" search for your own personal corporate boogie man, I am sure you can find a plethora of sites dedicated to the sins of their corporate and hiring practices. In this expose I want to pursue a course of conversation that the naysayers of Wal-Mart and other retail category killers seem to over look. The positive contributions made by "big retail" and why I am don't "pine" for the good old days of "Mom & Pop" stores. Let's begin with Wal-Mart. One of the critical slings and arrows that are "shot" at the retail giant is that when they become neighbors with the independent retail community, they immediately take away market share, forcing the surrounding businesses to wither and die on the vine. While I do not dismiss the fact that the gigantic presence of a Sam's Club or a Wal-Mart store can lay waste to some small businesses in its wake, I would also argue that the opposite is true as well. Wal-Mart can actually increase customer traffic to the local business community. Case in point. Some malls around the country are having a hard time (see: Deadmalls.com) attracting customers. A few years ago, Wal-Mart store decided to take up residence in one of the lesser known malls in my area. The large "anchor" store they built actually helped to increase foot traffic to the surrounding businesses community. It has been over ten years since Wal-Mart broke ground and built their store in that mall. Surprisingly, all but a few of the stores have changed hands due to the changing business climate for their services. Most are still in the same space they occupied when Wal - Mart first arrived on the scene. Not every example is this positive, but, the point is, Wal-Mart is not a "death sentence" for independent business owners who hover within their orbit. The fact of the matter is that some independent store owners may carry products or deliver services that are no longer attractive to the population that they serve. I remember growing up in a part of the country where there was no Wal-Mart. Most of the general merchandise shopping that was done in our house was derived from the category killers at the time Two Guys From Harrison, or Modell's. Sneakers, baseball mitts, jeans, and just about anything non-perishable came from those two stores almost exclusively. Chuck Taylor Converse sneakers, high tops, and low tops, were interchangeable. They were used as the everyday sneaker of choice. If you played sports as a kid, "Cons" filled the bill as well. Nike, Fila, Puma, Reebok, was nowhere to be found. Good clothes or your "Sunday" best came from one particular store downtown, and lasted until you out grew them. No Men's Warehouse, Joseph A Banks, The Gap, Banana Republic, American Apparel, or the wide variety of clothing retailers that are available today. Your food shopping options were limited as well. Shop-Rite and A&P were two of our grocery shopping options. Sam's Club, Costco's, BJ's, Bigots, or bulk food outlets were not in our consciousness. Since there were no Home Depot's or Lowes around back in the day, your option for home improvement supplies involved a visit to the local hardware store. If you wanted your car fixed, the local mechanic was sometimes your only option. It was considered too expensive, or not in the best form to go to a car dealership to get your car fixed. The service businesses, such as car repair, did not put their best foot forward when it came to customer service. Turnaround times for most car repairs had vague time tables. Oil changes could take days. Major repairs could take weeks with no firm date at to their completion.
The local hardware store, which was owned by Mom, Pop, and Son, was, at times, ill tempered and short staffed. Finding items that you needed for your own home improvement project could be an exercise in futility. If they did not carry what you wanted it had to be ordered. When they would receive said order was always a question mark. For those who pine for the days of just having "Mom &Pop" businesses as our only choice of commerce, let me illustrate my point by borrowing a few words from Rod Serling of the Twilight Zone... Imagine if you will.. " A world, without Costco, Lowe, Wal-Mart, Jiffy Lube, Midas, Home Depot, Office Depot, Office Max, Big Lots, Banana Republic, The Gap, Old Navy, Best Buy, Target, or just about any large category killer you can think of" Consider a world where franchising and corporate expansion were outlawed by the government. The only enterprises that are allowed to operate were the small business owner, free from the looming presence of any competition. They would control everything from foodto car repair. Mechanics perform every function, from minor oil changes to transmission repair. Specialized franchise services like quick oil change shops are forbidden and can only be performed by your local mechanic. Food shopping is limited geographically. There is only one supermarket in your town, and you cannot shop anywhere else. Are you willing to pay higher prices and endure limited choices to support your local business? Do you mind paying 50% to 100% more for food, when you know you could get the same food stuffs for much less at Sam's Club? What about car maintenance? Will you drop off your car and wait three days for an oil change, instead of an hour in a quick lube shop? Will you support your local mechanic and pay a higher than normal labor rate? How about computer equipment? Suppose your local office supply store does not carry all the computer accessories you want? Are you willing to wait days, maybe even weeks to get blank CD's on order? If you answered yes to anyone of those questions, then you are a much better person then I am. Congratulations. You just might see the world through clearer eyes then I do. However, I may be a bit more selfish, or practical, depending on your point of view. I do not want to wait three days for an oil change. I do not want to pay more for food then what the market is willing to bare. I do not want to live in a world where markets are restricted and product choices are limited. With all due respect to IBO's, I want the cheapest price I can find, with the best service available. Sometimes, the independent business owner just doesn't deliver. Today, I get my oil changed in about 30 minutes depending on the crowd. If they are too busy, I have plenty of choices. Within the county that I reside, I have a choice of seven different quick oil change franchises. I have been going to just one for a few years now and they are rarely crowded. When I first started driving, (many, many moons ago) they did not exist. When I needed an oil change and lube, just like major repairs, it was whenever the mechanic got around to doing it. I could not imagine going back to the days of "I'll get around to it" oil changes and auto repairs. I have relatives that have always been loyal to General Motors cars, Chevy imparticular. There was a time in GM's history when the quality of autos was not what they should be and they spent a lot of money on car repairs. After a head gasket failed on their last Chevy, they decided to take a chance on a new Toyota Camry. Five years later and other then normal maintenance the car runs like a champ. In addition, the local Toyota dealer has a great customer service program. If you need your car serviced they have a drive in system that requires no appointment. Keep in mind also, that the point of this article is not to diminish small businesses. They are the life blood of the United States providing 70% of the jobs in this country. But there is a certain amount of creative destruction within the marketplace is inevitable. I am sure that the companies who built horse drawn carriages were not all that happy when Henry Ford came along. But, the horse and carriage was part of a fading era in transportation. Likewise, not addressing customer's needs or finding an unfilled niche in the market place is the reason why we have Jiffy Lubes, Wal-Marts, Costco, and the large corporate entities that offer the widest array of product choices at the lowest cost possible. And while it may seem impossible to comprehend, Wal-Mart might go the way of the buggy whip as well. Eventually someone will develop a new business model that will sweep Wal-Mart from the retail landscape. But until then, I will be heading to Sam's Club to get a discount on a case of San Pelligrino spring water from Italy! Want to start your own business selling products? Not sure where to start? We have over 600 wholesale and surplus product supply sources in 12 different product categories. Click here to get started... ©2003 - 2007 Robert C. Potter, All Rights Reserved |
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