Retailers could outfox big-box wage ordinance (Chicago)

Chicago Sun-times ^ | 7/27/06 | Editorial

[DustyMoment]

When will the politicians learn?

A rhetorical question, I presume?

[ARW3A]

Employee wages get incorporated into the cost of goods sold at the store. Purchasing power is reduced. Real smart for a blighted area.

[bfree]

Retail executives are realists, and the reality is that if they made a principled stand and refused to locate stores within city limits just beacuse of this law, they would face loud public accusations of racism from the usual suspects (part of the reason the law passed so easily - the aldermen know Jesse's got their back). Subsequently, they might lose more sales to boycotts than they would lose on extra wages if they just went ahead and built the stores.

How wrong you are. Most of the areas that want the stores are minnority, depressed areas in the city. The mayor and the leading black aldermen were against this law. This law hurts these areas in two ways, higher prices and lack of jobs.

[Gabz]

WalMart Ping..........

Who has the popcorn????????? Tbis is getting to be a bit interesting!!!!

Anyone wishing on or off this WalMart ping list let me know on a thread.

[torchthemummy]

I lived near a shopping center anchored by a Walmart. Walmart moved to a larger store, and blocked anyone that might compete from relocating there. (A lousy trick, but it's their lease)

The shopping center dropped dead. All the small stores had to move because of lost business, and it took a good 5 years for things to start recovering.

Sorry but it is very hard for me to believe that Walmart is locking out smaller shops to avoid competition.

I have been to well over twenty Walmarts and the vast majority, including my hometown store, have thrived. This particular location was on lifesupport before Walmart moved in. Now this Walmart is surrounded by a Dollar store, Burger King, Unicel, Olympia Sports, Hallmark, Supercuts, 99 Restaraunt, Walgreens, Pizzaria Uno and Dunkin Donuts.

I go to Shaws all the time now because I need to pick something up at Walmart (and visa-versa.) I'll go to the dollar store when I need a couple items I can find there and need to get in and out quick.

Not only have I seen the evidence here and at every other location of Walmart's midas touch rubbing off on surrounding businesses it is only to Walmart's advantage to have smaller shops that have specialities that draw consumers to the location. It is a two-way street.

And of the Super Walmarts which are often a ground-breaking endeavour (brand new) surrounding plazas still benefit from the draw. Walmart creates an economic eco-system that does actually increase sales traffic and lifts the quality of service at the smaller stores.

So your example is contrary to anything I have seen myself or read about.

[peggybac]

I testified for Wal Mart a few years ago as a witness to an obviously set up slip and fall.

Interesting. Tell us more....

[peggybac]

Great post. What I've seen corresponds with what you wrote. So many smaller stores and businesses springing up around Walmart and thriving.

BTW, I do my grocery shopping now at the Walmart Grocery Stores. The prices are incredible and I can find 99% of what I need there.

[Gabz]

To no one's surprise, the Chicago aldermen (and women) have just demonstrated a woeful lack of knowledge about economics and a woeful lack of concern for the "little people" they claim to champion.

I was listening to Larry Elder discussing this about an hour ago..........those were exactly his sentiments, and then he had some more to say.

[peggybac]

I miss Larry - we don't get him in KC and I was a faithful listener when I lived in Los Angeles. How is he after the death of his mom? Did he have much to say about it?

[Dog Gone]

Maybe what they should do instead is open stores that are 89,999 square feet in size. That would expose the arbitrary and unfair nature of the law.

They're not that stupid. The Alderman would simply change the ordinance, and then they're screwed.

Simply move to the suburbs and let Chicago die.

[I still care]

I can't say anything I know, firsthand. I am repeating what was told me by the owner of one of the small shops.

She said Walmart had gotten several good offers from major stores such as grocery, etc, and had turned them down. .

She said Walmart owned the lease on the store for 10 years, simply was not approving anyone "that would be a major competitor". She said she held out for a few years, but eventually had to relocate.

How true this is I cannot attest. Eventually the Walmart was subdivided, and the small stores were "combined" into larger spaces. They did include stores like Foot Locker and Bed Bath and Beyond.

[LouD]

I predict a wave of big box store construction - just outside the city limits.

[torchthemummy]

Thanks for the clarification.

[Gabz]

Everytime a Wallmart opens, about 500 jobs are created immediately. These developments almost always spur other shoping developments as Wallmart is considered a retail anchor wherever they set up shop. Those other stores create more jobs. Then, distrubution centers and districts are needed to supply the shopping centers. Walmart creates untold jobs and tax revenue where ever they set up shop.

You are doomed among the WalMart haters on this site........according to them you can only be a WalMart executive to spout that tripe.

I know, because I totally agree with you, have said similar things and earlier this week was accused of being a WM exec for saying it.

[SauronOfMordor]

A friend of mine has a duct-cleaning business. He has lots of workers, but no employees. He gets all his workers from a temp agency called Labor Ready, which is their official employer of record. Labor Ready takes care of payroll, taxes, IRS reporting, verifying that they're not illegal immigrants, etc, etc.

All WalMart has to do is get their low-level grunts from a staffing agency. Their managers can be WalMart employees. Problem solved

[torchthemummy]

Thanks.

[Gabz]

My mom owned a store in a shopping strip. When a Wal Mart replaced a Jewel (local grocery chain same chain as Albertsons) her sales nearly doubled.

You're a liar.......EVERYONE knows that WalMart destroys all small business in a 100 ile radius when they open....(/walmart basher talking points)

I'm happy to hear your mom did so well, and it is not surprising to me in the least.

[Still Thinking]

Being stupid does not disqualify one from being elected in Chicago.

Disqualify? I thought it was required.

[Gabz]

Big cities are filled with the "gimme something for nothing" crowd.

I hate to tell you, but there ain't no "big cities" in Delaware, and it's largest city, Wilmington, gives the real big cities a run for their money on a per capita basis. Heck the entire state of Delaware is nothing more than a large small town, or tiny city..........and they have the "gimme something for nothing" ideal down to a science.

[Diana in Wisconsin]

Who has the popcorn?