[Vision2020] Economic model supplied by Wal-Mart

[Joan Opyr]

Dear Visionaries:

At the Moscow Chamber of Commerce "Big Box" meeting this afternoon, 
Andrew Crapuchettes presented an economic model supplied by (drum roll, 
please) a company owned by Wal-Mart.  Just for the sake of balance, 
here's an economic impact analysis generated by Professor Mitch Renkow 
of North Carolina State University (my alma mater).  You can download 
the article in .pdf from the following site:

http://www.ag-econ.ncsu.edu/VIRTUAL_ LIBRARY/ECONOMIST/novdec05.pdf

In the meantime, here's a brief exerpt:

"Economic Impacts Effects on Consumers

The efficiencies with which Wal-Mart connects  producers of the goods 
it sells with its customers  allow it to price many of those goods well 
below  the prices that other, competing retailers can offer.  In 
addition, and particularly in rural locations, WalMarts tend to offer a 
much wider variety of prod  ucts for its customers to choose from. This 
is  particularly true of ‘Supercenters’ that sell prod  ucts ranging 
from clothing to groceries to hard  ware to optical services.  Lower 
prices and greater availability of  products in one location clearly 
provide direct  economic benefits to local consumers.  The size of  
those benefits will vary from location to location,  depending on how 
much lower the prices are and  how much farther consumers would have to 
travel  to access that greater range of goods.

Effects on Other Retail Establishments

Wal-Mart’s ability to sell goods more cheaply  means that it represents 
a profound threat to the viability of other nearby retail 
establishments.  There is no doubt that some of these newly outcompeted 
establishments will be forced out of  business when a new Wal-Mart 
opens its doors  for business, and that others will be forced to  
downsize as their customer base declines. Par ticularly hard-hit 
competing businesses tend to be stores selling apparel, shoes, 
hardware, building  supplies, paint and glass, groceries, fabric and  
jewelry. Additionally, establishments providing  certain kinds of 
services – for example, optical  services and car repairs – are also 
vulnerable.  On the other hand, certain types of businesses  offering 
goods and services that Wal-Mart does  not sell tend to be positively 
affected by proximity  to Wal-Mart. This is mainly due to a greater 
incidence of walk-in (or drive-by) shoppers.  Home furnishings stores 
and some eating estab lishments are examples of these kinds of 
business.  However, despite these positives, there is no  doubt that on 
the whole Wal-Mart has a depress ing effect on the well-being of other 
local retail  businesses."

Which of Moscow's current retail establishments would survive the 
introduction of a Wal-Mart Supercenter?  Rudy's Delicious Burgers and 
the new Cucina Italiana.  I'd be willing to bet at, say, a hundred to 
one, that Sears, Spence Hardware, Safeway, Rosauer's, Hodgin's Drugs, 
Gottschalk's, the Bon Macy's, Hastings, Staples, Office Depot, 
HyperSpud, and most other small, retail establishments would be 
devastated.

And, really -- a Wal-Mart Supercenter across from the City Cemetery?  
How trashy can you get?  Though I suppose it would be convenient for 
buying those Memorial Day flowers . . .

Joan Opyr/Auntie Establishment
www.joanopyr.com

PS: I'm working on a piece for New West (www.newwest.net) on the threat 
this retail monster poses to our town.  It's called "Moscow Menaced by 
Big Box Bastard."  How's that for unfair and unbalanced?
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