[Vision2020] Palouse Monopoly Empire Mall; Gas/Food prices

Sat Apr 21 16:09:04 PDT 2007

  Tom,

  Actually, having delivered goods to a giant Wal-Mart warehouse, I believe I am a little better aware of their distribution system than you are.

  Wal-Mart contracts outside transportation companies, like Swift, JB Hunt, Gordon, etc, to pick up and deliver goods to their major distribution centers in places like Hermiston, OR or Salt Lake City, UT. Once they get to the distribution centers Wal-Mart owned trucks, governed at the speed limit of 65 MPH, with drivers making about 10-20% more than the average truck driver, pick up the merchandise and deliver it to the individual stores.

  Wal Mart has much more control over its transportation and distribution system than most other companies. They can warehouse and change routes and deliveries. They in fact do not rush their merchandise, they know well in advance what they need and when they need it. A Wal Mart truck is never in a hurry. In fact, they are probably the second slowest truck on the road, behind Swift. 

  The markets that are most injured by rising gas prices are shippers like Fed Ex that burn lots of fuel driving quickly. Also reefer vans, that haul perishable items like groceries will be hurt. Food items have a limited time frame and cannot change delivery times or routes to make up for the increase in gas prices. 

  The JIT you are referring to is in reference to local trucks because they don't waste space at stores for storage and maximize selling space, so that Mark Solomon can have grease pens or Saundra Lund can find that specialty item she complains about not finding.  If Wal-Mart stored stuff behind the counter, could you imagine how big the stores would have to be?

  Best,

  Donovan

Tom Hansen <thansen at moscow.com> wrote:

        v\:* {behavior:url(#default#VML);}  o\:* {behavior:url(#default#VML);}  w\:* {behavior:url(#default#VML);}  .shape {behavior:url(#default#VML);}        st1\:*{behavior:url(#default#ieooui) }                Wal-Mart uses the “Just In Time” (JIT) inventory system.  This system eliminates warehousing of inventory.  JIT requires extensive coordination between Wal-Mart and its suppliers.  Suppliers must be able to ship required amounts of merchandise to specific locations at the time the products are required.

  Wal-Mart’s “inventory” is either on the shelves in the store or on the road in transit.  As such, any increase in gasoline prices drastically effects costs to Wal-Mart.

  Guess who ultimately pays the difference in increased gas prices?  It ain’t Wal-Mart.

  Arnold goes on to state:

  “With no other discount grocery stores in the area, like say a Super Wal-Mart, Winco can raise its prices with no consequences, everybody has to eat.”

  Since WinCo is, as Arnold suggests, a “discount” grocery store, wouldn’t it lose its “discount” status if it were to raise its prices to (or above) those of Rosauers or Safeway?

  Or is Arnold suggesting that Winco undercuts their competition (Rosauers and Safeway) that they (WinCo) can charge whatever price they want?  HUH?!?!?

  Tom Hansen
  Moscow, Idaho

    "We're a town of about 23,000 with 10,000 college students. The college students are not very active in local elections (thank goodness!)."

- Dale Courtney (March 28, 2007) 

---------------------------------

  From: vision2020-bounces at moscow.com [mailto:vision2020-bounces at moscow.com] On Behalf Of Paul Rumelhart
Sent: Saturday, April 21, 2007 2:21 PM
To: vision2020 at moscow.com
Subject: Re: [Vision2020] Palouse Monopoly Empire Mall; Gas/Food prices

  I could have sworn I bought food at a massive chain store the other day in the other mall.  Anyway, I don't think the Winco retail chain is being overly hurt by UI and WSU student population declines.  Maybe this branch, but I'd like to see some figures first.  I'm also wondering if large supermarket chains, such as Winco, aren't just raising prices all over in an attempt to cover losses in other places.  Anyway, there are alternatives to Winco.  There must be, because I rarely shop there (except to buy the occasional Pocky sticks) and I need food to survive just like everybody else.  I'd be interested to find out if local stores, such as the Co-op, are having to raise their prices more than the big-name stores.  Presumably, this same rise in prices due to gas prices will affect everything that is shipped by truck - not just food.  Walmart is basically built on the idea of massive transportation of goods quickly.  I'd imagine that the rise in gas prices will affect it
 more than most stores.

As for the honey bee problem, I'm hoping that it will work itself out the natural way.  The 40% of bees that are left will breed resistance to whatever it is that is killing them off, and the survivors will flourish because there is now so little competition for them individually.

Also, the Palouse Mall does not have a monopoly.  There is nothing that they are doing that would stop another developer from building their own mall.  If you want to protest the high prices they charge for rental space, don't shop there.  You'll find there are a number of alternatives out there.

Paul

Donovan Arnold wrote: 
    Food prices are only going to go up even more for several reasons;

    1) The massive extinction of honey bees has created a void in pollination of 1/3 of the US food supply. 60% of honey bees have died, with no cure or solution in the near future.

    2) Increases in fuel prices increase the shipping costs of food. 

    3) Many crops were wiped out this year due in the freakish winter storms. For example, oranges had a massive freeze.

    4) The UI and WSU student populations have decreased, the main income for Winco. With a reduced volume in sales, Winco has to raise prices to cover losses in volume sales.

    5) No competition. With no other discount grocery stores in the area, like say a Super Wal-Mart, Winco can raise its prices with no consequences, everybody has to eat.

    6) The owners of the Palouse Empire Mall are raising their rents. 

    I think it is obvious, Moscow needs competition in the area to curve rising prices. It also needs to do some sting operations on gas price fixing which obviously is going on. 

    Maybe, many of you guys should call Pat Vaughn and ask him to reassess the property value of the Palouse Empire Mall, which is monopoly. Perhaps if the mall can make such huge increases in their leases, the value of the only active retail mall on the Palouse is much higher than what the County Assessor has it listed as. 

    If I had the time, and a personal interest at stake, like so many of you do, I would contest the taxable value of the Palouse Empire Mall. It is clear that it has a really high value since it is able to charge so much for its lease spaces and has no real competition. Moscow is probably losing $100,000s in tax revenue that could go to things like finding a new space for the public bus to park on the west side of town, and to give property tax breaks to locally owned businesses that are having a hard time due to the fact no mall will let them conduct business on their property. Just a thought to those litigious and want what's best and for our community.

    Best,

    Donovan

Ellen Roskovich <gussie443 at hotmail.com> wrote:

        As the cost of gas continues to climb at the pumps, the price of food starts to rise at the grocery stores.  Has anyone else noticed this recently?

    Ellen Roskovich

---------------------------------

  MSN is giving away a trip to Vegas to see Elton John.  Enter to win today. =======================================================
List services made available by First Step Internet, 
serving the communities of the Palouse since 1994. 
http://www.fsr.net 
mailto:Vision2020 at moscow.com
=======================================================

---------------------------------

  Ahhh...imagining that irresistible "new car" smell?
Check out new cars at Yahoo! Autos. 

---------------------------------

=======================================================

 List services made available by First Step Internet, 

 serving the communities of the Palouse since 1994.   

               http://www.fsr.net                       

          mailto:Vision2020 at moscow.com

=======================================================

=======================================================
List services made available by First Step Internet, 
serving the communities of the Palouse since 1994. 
http://www.fsr.net 
mailto:Vision2020 at moscow.com
=======================================================

---------------------------------
Ahhh...imagining that irresistible "new car" smell?
 Check outnew cars at Yahoo! Autos.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://mailman.fsr.com/pipermail/vision2020/attachments/20070421/08120a42/attachment-0001.html 