ROB - Living with the giant down the street

[DragonflyProperties]

Hi all,An article from the October 24th edition of the Globe and Mail (Report on Business). Excerpts:

ROOTED IN GROWTH

Okotoks, which has restored its old-style main street look, is typical of the type of place that Wal-Mart targets. Crowned in the 2006 census as Canada`s second-fastest growing mid-sized community, Okotoks`s population has doubled since the beginning of the decade to about 20,000 - and is expected to reach 30,000 by 2015.

Its youthful population (average age: 32) is attractive to Wal-Mart because young people make more purchases than older consumers do. And the burst of housing construction is appealing because new homeowners buy more.

After Wal-Mart arrived, other big-box retailers soon followed, along with new restaurants and shops. Today, Okotoks officials estimate about 50 new shops, eateries and professional offices have come to town, while only a few closed.

People from outside of Okotoks flood into town to shop. Last month, another retailer - Home Depot - opened, anchoring another shopping development several blocks from Wal-Mart. "Certainly we have seen a change in the types of businesses that have come here," says Shane Olson, the town`s economic development team leader.

SPEED BUMPS

Not all communities have been as welcoming to Wal-Mart as Okotoks.

In Okotoks, as Wal-Mart prepares to expand its store, rivals are not standing still. Home Depot is drawing customers by touting its broad range of energy-efficient and environmentally friendly products, says Peter Vernon, a Home Depot district manager.

And it tries to take advantage of Wal-Mart`s popularity, he says. "The more traffic in the area, the more opportunity we have to drive people into our stores, and the better off we`re going to be."

http://www.theglobeandmail.com/servlet/sto...=marina+strauss

Keith

 

[willy]

and when you lose your job at the local production facility because everybody is buying Chinese crap, you can still aways get a minimum wage job as a greeter at sprawlmart.

Buy quality, buy for life.

Buy Canadian, buy for livelihood.

w

 

[invst4profit]

Wal-Mart has the most horrendous employment practices of any large employer I know of.
They have no loyalty to any country and therefor undermine our manufacturing base here in Canada.
I personally refuse to shop there.

 

[Jack]

and when you lose your job at the local production facility because everybody is buying Chinese crap, you can still aways get a minimum wage job as a greeter at sprawlmart.

Too bad for them - welcome to the world of competitive enterprise. Makes zero sense for the consumer to spend more of their disposable income for no other reason than to "support" local (inefficient) manufacturing operations.

Wal-Mart`s the low-cost provider of things that people need every day, making them not only an excellent long-term investment with a durable competitive advantage, but also offering the consumer a logical reason for shopping there.

They`ve got my support!

 

[willy]

I`d rather buy a product that is quality made and lasts for ten years, than pay 30% less and have to replace it in 6 months. It ends up costing you considerably more in the long run. The majority of people these days, however, display shortsighted behaviour. They just see the lower price on the tag and say "What a deal!"

Environmentally speaking as well (I`m a tree hugger. No, they haven`t hugged back yet.) their practices make no sense. They can purchase a widget manufactured in China where there`s no pollution laws, thus produced cheaply, but with serious environmental impact. They then ship this inferior plastic widget half way around the world, adding yet more smog into the mix. It is then purchased, but because of it`s poor quality, fails shortly after, going to the landfill. This leaves the consumer needing a new widget, and the whole process starts again.

Meanwhile, I`ll buy the quality built stainless steel widget, produced 10 km down the road, according to environmental standards. Eventually, many years down the road, when my trusty old widget finally fails, I`ll recycle it, and it`ll be reused to make new widgets.

Yes, I realize most people consider this odd behaviour. =)

w

 

[DragonflyProperties]

Although I have empathy for people losing jobs, I agree 100% with Jack. We now live in a global market place and businesses either find ways to become more competitive (find a niche and often thrive) or they struggle and possibly close shop. My experience is that, for many people, more money in their pocket speaks louder than their personal convictions.

Keith

 

[invst4profit]

Because Wal-Mart is globally so large it forces suppliers to meet it`s price demands. To do so Wal-Mart goes to countries with very low employment standards.
In countries like Canada quality manufactures are forced to lower there prices at the expense of their employees wage and working conditions.
Productivity increases do not come close to addressing Wal-Marts pricing policies.

Bottom line is we can have Canadian standards or Wally-World standards but not both.

 

[wealthyboomer]

Thanks to Wal-Mart, we have enjoyed low inflation levels.

Thanks to Wal-Mart, as shoppers have more `disposable` income to spend within their own communities. This has actually RAISED the standard of living of the poor.

Thanks to Wal-Mart, many companies have learned how to be innovative and increase their own productivity.

 

[Jack]

QUOTE In countries like Canada quality manufactures are forced to lower there prices at the expense of their employees wage and working conditions.
Productivity increases do not come close to addressing Wal-Marts pricing policies.
Or, "quality" manufacturers could just not sell to Wal-Mart.

QUOTE Bottom line is we can have Canadian standards or Wally-World standards but not both.

How does a case of Coca-Cola purchased from Wal-Mart differ from a case of Coca-Cola purchased from Safeway besides the fact that it`s about 20% less expensive? What exactly do you think Wal-Mart sells? It`s a lot more than just toys and widgets purchased from China.

 

[wealthyboomer]

QUOTE (invst4profit @ Oct 28 2008, 10:47 AM) In countries like Canada quality manufactures are forced to lower there prices at the expense of their employees wage and working conditions.
Productivity increases do not come close to addressing Wal-Marts pricing policies.What manufacturers were `forced` to lower their prices, and how were they `forced`?

 

[GarthChapman]

This isn`t economic fundamentals. It has become a rant opportunity.

 

[invst4profit]

Agreed. Moving on.