[Vision2020] When Wal-Marts go Dark

[Chris Storhok]

We have heard the "just-in-time" inventory system is why they are in a
rush to build a second Wal-Mart in Fairbanks and a second in the
Wasilla-Palmer location.  The stores up transfer their stock around in a
400+ mile system that drives just both store managers and customers
nuts.  Just imagine a Boise store stocking the Moscow store, I cannot
see how they keep their prices down.  
Wal-Mart pays good wages here as well since they learned quickly that
minimum wage cannot attract even decent employees in a labor market that
is as tight as Alaska's.  
Their volume here is incredible as well, it is not unusual to see
families leaving the store with 2 or 3 shopping carts filled with stuff.
Store managers love to tell us that the Fairbanks Wal-Mart just about
leads all of their other stores in sales.  These guys even have
contracts with bush pilots to move products to the far reaches of the
state and Siberia. (I have been told from North Slope Borough officials
that it was painfully obvious to their solid waste managers when the
Fairbanks store opened, Wal-Mart consumers produce one heck of a pile of
trash that the smaller communities cannot handle; they are looking to
the state and the feds to fund construction of new incinerators to
handle the load).

Wayne's comment below about trying to reverse the trend of super centers
is interesting in light of Wal-Mart's effect on the economy of interior
Alaska.  Our economic professionals have noted that Wal-Mart has really
sparked a new found interest in many of the smaller mom-and-pop stores
in the region.  Several of these stores such as Big Rays, Beaver Sports,
and the Prospector have seen increased sales since Wal-Mart moved in.
These stores carry the higher end gear, clothes, bikes, and so forth
that Wal-Mart does not carry, people that come to town to shop head off
to these stores after visiting Wal-Mart and find that they have been
getting a good deal from these people all along.    

Chris


-----Original Message-----
From: vision2020-bounces at moscow.com
[mailto:vision2020-bounces at moscow.com] On Behalf Of Tom Hansen
Sent: Tuesday, June 20, 2006 3:10 PM
To: 'Art Deco'; 'Vision 2020'
Subject: RE: [Vision2020] When Wal-Marts go Dark

Another item of interest concerning Wal-Mart's "Just in Time" inventory
system:

Since Wal-Mart does not maintain any of its inventory in warehouses,
items
are constantly "in transit" from one outlet to another.

One can hardly imagine the impact of gas prices on such a system.

Thoughts?

Tom Hansen
Moscow, Idaho

 "Life should NOT be a journey to the grave with the intention of
arriving
safely in an attractive and well preserved body, but rather to skid in
sideways, chocolate in one hand, a drink in the other, body thoroughly
used
up, totally worn out and screaming 'WOO HOO. What a ride!'"

-----Original Message-----
From: vision2020-bounces at moscow.com
[mailto:vision2020-bounces at moscow.com]
On Behalf Of Art Deco
Sent: Tuesday, June 20, 2006 2:55 PM
To: Vision 2020
Subject: Re: [Vision2020] When Wal-Marts go Dark

Chris,

I read an article some time ago about WalMart planning to sell fewer
items 
of each type and to push their Just-In-Time inventory system to the max.

These policies have a counterproductive effect on customer service.  I
am 
not qualified to speak of the world economy.  [Neither are many of those
who

claim such knowledge.]  I think some of Sam Walton's original
philosophies 
which fueled the growth of WalMart early on have been de-emphasized or 
abandoned.

I hope that Moscow can reverse the trend of super-centers in general.
In 
the past week my wife has referred several people to Paradise Creek
Cycle. 
At least two of them bought bicycles.  Although they cost more than at 
WalMart, you get knowledge, presales testing and fitting, and service
not 
available at WalMart, not to mention the large selection and the absence
of 
throw away bikes.

W.



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