[Vision2020] Wal-Mart to Hire up to 150,000

[Art Deco]

Gary asks:

"Art, is there any chance that you would be willing to provide a list of the "compitition" [sic][sic] that Wal-Mart "drove out?"[sic][sic]

Here's a start:

J. C. Penny
Sears
K-Mart

University Drug & Gift
Husky/Gun Shop
Army Surplus


This is not a claim that the advent of the current WalMart was the sole cause of the above businesses going out, but it certainly was a factor as WalMart competed head-on with much lower prices on some or many of the items sold by all six businesses.  Most likely the advent of WalMart reduced the net income of the above businesses enough to make then not viable in the eyes of the owner or corporate management.

In the case of the first three, Lewiston/Clarkston with its larger marketing area continues to support all three in addition to a WalMart about the same size as the current Moscow WalMart, although there are questions as to how long all of the three will stay in Lewiston.  

In the case of the last three small local businesses, the owners were unable to sell their businesses even though some gave "retirement" as their reason for going out.  I assume that a rational business owner having spent years building asset value in a business would try to redeem as much of that as possible.  Selling a viable business is generally the most effective means of maximizes the asset return.  Going out of business is not.



Art Deco (Wayne A. Fox)
deco at moscow.com



----- Original Message ----- 
From: "g. crabtree" <jampot at adelphia.net>
To: "Art Deco" <deco at moscow.com>; "Vision 2020" <vision2020 at moscow.com>
Sent: Saturday, March 25, 2006 10:32 AM
Subject: Re: [Vision2020] Wal-Mart to Hire up to 150,000


> Part of
>> their strategy locally and nationally has also been to drive out 
>> competition
>> with low prices, then gradually increase their prices (and profit margins)
>> in those areas where they think competition has been weakened.
> 
> Art, is there any chance that you would be willing to provide a list of the 
> "compitition" that Wal-Mart "drove out?"
> 
> gc
> ----- Original Message ----- 
> From: "Art Deco" <deco at moscow.com>
> To: "Vision 2020" <vision2020 at moscow.com>
> Sent: Saturday, March 25, 2006 7:47 AM
> Subject: Re: [Vision2020] Wal-Mart to Hire up to 150,000
> 
> 
>> Matt Decker asks:
>>
>> "What is a Super Wal-Mart? I think we have talked about a grocery store, 
>> gas
>> station, tire shop, and the regular Wal-Mart. Is there anything else?"
>>
>>
>> Good question.
>>
>> It would be interesting to find out exactly what the SWM would be offering
>> if it initially opens.  Perhaps Matt you or someone else could find out 
>> and
>> tell V 2020 and the local media (who seem always to be behind on this 
>> issue
>> [and others]).
>>
>> Wal-Mart is a very smart marketing and sales organization.  They (and 
>> other
>> big box stores) keep changing what they carry based in part on what sells,
>> the profit margin of what sells, cooperative advertising agreements, and
>> other factors.  What they offer initially will change then as they gain
>> experience with the area market.
>>
>> However, your question is good.  If it is known what they are going to 
>> carry
>> initially, their impact on local merchants, especially those who are
>> generous in their support of local organizations, care be more clearly
>> estimated.
>>
>> Perhaps then Matt, you (or some interested party) can the find answers to
>> your question.
>>
>> Art Deco (Wayne A. Fox)
>> deco at moscow.com
>>
>>
>> PS:  Here is another matter, Matt (no alliteration intended):  When the
>> present local Wal-Mart first opened, they were the price leader on many
>> types of products.  Not anymore.  After basically dumping for a period of
>> time and inculcating by practice the "We are the lowest priced, most
>> convenient store" mantra in area shoppers, the prices at the local 
>> Wal-Mart
>> have crept up disproportionately so that many products are available at 
>> the
>> same or lower prices elsewhere in Moscow.  While there are some areas 
>> where
>> Wal-Mart is still the price leader, in many areas they are not.  Part of
>> their strategy locally and nationally has also been to drive out 
>> competition
>> with low prices, then gradually increase their prices (and profit margins)
>> in those areas where they think competition has been weakened.
>>
>> Perhaps, Matt in this regard you remember the lawsuit over Wal-Mart's
>> previous motto: "Always the low price."  They were sued over the
>> truthfulness of that motto.  They lost.  Now they have an ambiguous,
>> basically meaningless motto about low prices.
>>
>> Rose Huskey posted several weeks ago about the experience of the company
>> that makes Snapper lawnmowers.  Wal-Mart wanted that company to value
>> engineer their products (read: offer a cheaper product of a lesser quality
>> made by someone else but with the Snapper label).  Snapper refused.  Many
>> other companies don't, hence don't expect some of the products offered at
>> Wal-Mart to be the same quality as what appears to be the same product 
>> with
>> the same packaging offered at other area stores.  Wal-Mart is not the only
>> store that does this, but they seem to be the most aggressive about it.
>>
>> This post is not intended to be an argument for or against a SWM, but is a
>> suggestion that not all the important facts are on the table yet.
>>
>> ----- Original Message ----- 
>> From: "Art Deco" <deco at moscow.com>
>> To: "Matt Decker" <mattd2107 at hotmail.com>
>> Sent: Friday, March 24, 2006 7:44 AM
>> Subject: Re: [Vision2020] Wal-Mart to Hire up to 150,000
>>
>>
>>> Matt Decker asks:
>>>
>>> "What is a Super Wal-Mart? I think we have talked about a grocery store, 
>>> gas station, tire shop, and the regular Wal-Mart. Is there anything 
>>> else?"
>>>
>>>
>>> Good question.
>>>
>>> It would be interesting to find out exactly what the SWM would be 
>>> offering if it initially opens.  Perhaps Matt you or someone else could 
>>> find out and tell V 2020 and the local media (who seem always to be 
>>> behind on this issue [and others]).
>>>
>>> Wal-Mart is a very smart marketing and sales organization.  They (and 
>>> other big box stores) keep changing what they carry based in part on what 
>>> sells, the profit margin of what sells, cooperative advertising 
>>> agreements, and other factors.  What they offer initially will change 
>>> then as they gain experience with the area market.
>>>
>>> However, your question is good.  If it is known what they are going to 
>>> carry initially, their impact on local merchants, especially those who 
>>> are generous in their support of local organizations, care be more 
>>> clearly estimated.
>>>
>>> Perhaps then Matt, you (or some interested party) can the find answers to 
>>> your question.
>>>
>>> Art Deco (Wayne A. Fox)
>>> deco at moscow.com
>>>
>>>
>>> PS:  Here is another matter, Matt (no alliteration intended):  When the 
>>> present local Wal-Mart first opened, they were the price leader on many 
>>> types of products.  Not anymore.  After basically dumping for a period of 
>>> time and inculcating by practice the "We are the lowest priced, most 
>>> convenient store" mantra in area shoppers, the prices at the local 
>>> Wal-Mart have crept up disproportionately so that many products are 
>>> available at the same or lower prices elsewhere in Moscow.  While there 
>>> are some areas where Wal-Mart is still the price leader, in many areas 
>>> they are not.  Part of their strategy locally and nationally has also 
>>> been to drive out competition with low prices, then gradually increase 
>>> their prices (and profit margins) in those areas where they think 
>>> competition has been weakened.
>>>
>>> Perhaps, Matt in this regard you remember the lawsuit over Wal-Mart's 
>>> previous motto: "Always the low price."  They were sued over the 
>>> truthfulness of that motto.  They lost.  Now they have an ambiguous, 
>>> basically meaningless motto about low prices.
>>>
>>> Rose Huskey posted several weeks ago about the experience of the company 
>>> that makes Snapper lawnmowers.  Wal-Mart wanted that company to value 
>>> engineer their products (read: offer a cheaper product of a lesser 
>>> quality made by someone else but with the Snapper label).  Snapper 
>>> refused.  Many other companies don't, hence don't expect some of the 
>>> products offered at Wal-Mart to be the same quality as what appears to be 
>>> the same product with the same packaging offered at other area stores. 
>>> Wal-Mart is not the only store that does this, but they seem to be the 
>>> most aggressive about it.
>>>
>>> This post is not intended to be an argument for or against a SWM, but is 
>>> a suggestion that not all the important facts are on the table yet.
>>>
>>>
>>>
>>> ----- Original Message ----- 
>>> From: "Matt Decker" <mattd2107 at hotmail.com>
>>> To: <joekc at adelphia.net>; <donovanjarnold2005 at yahoo.com>
>>> Cc: <vision2020 at moscow.com>
>>> Sent: Thursday, March 23, 2006 10:31 PM
>>> Subject: RE: [Vision2020] Wal-Mart to Hire up to 150,000
>>>
>>>
>>>> Question for all,
>>>>
>>>> What is a Super Wal mart? I think we have talked about a Grocery store, 
>>>> gas station, tire shop, and the regular walmart. Is there anything else?
>>>>
>>>> Thank you
>>>> Matt
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