Press Releases

Vox Clamantis

By Elliott Carr

Thinking outside of the Big Box

Large national chain stores are coming to Cape Cod, where we can't decide whether they are good, bad, or both. Wal-Mart of Benton, Arkansas, which employs 820,000 people,more than any other company in America ,opened its first Cape Cod store in 2001, replacing Bradlees in the Falmouth Mall. They promptly shut off the entry to the rest of the mall. Wal-Mart doesn't want customers coming and going to other stores; they want all of the consumer's wallet.

A company doesn't get that big without knowing how to crowd smaller pigs away from the trough. Frustrated in Yarmouth, Atlanta's Home Depot circles, attempting to put its 1460th store into another vacant Bradlees site in Hyannis, temporarily hung up in a disagreement with the Cape Cod Commission about whether an expanded list of hazardous materials constitutes a change of use. According to the newly organized Smart Planning and Growth Coalition, a Home Depot store in Hyannis could have a negative impact on as many as 148 smaller, locally owned retailers on the Cape, sales at new chain stores don't materialize out of nowhere.

Stop & Shop of Quincy recently announced plans for one of its "next generation" of superstores, expanding from 55,000 to 70,000 square feet into a third vacant Bradlees site in Orleans. They need the additional space not to sell more food, but as outlets for Office Depot, Toys R Us, and other inedible goods.

The aforementioned Smart Planning and Growth Coalition labels the chain stores' arrival as "corporate colonialism: large organizations from one place going into distant places and strip-mining them culturally and economically;" evil empires invading the Cape.

The coalition spins a lot of facts to bolster its opposition to "corporate colonialism":

Studies by the Local Government Coalition indicate that "foreign owned businesses contribute from one to 16 percent of revenues to their local community," whereas "locally owned businesses contribute up to 60
percent of revenues to the local community."

A study by the Town of Barnstable indicated that a "big box" retail store costs the taxpayers $468 a year per 1,000 square feet of space, whereas a "specialty retail" store returns $326 for the same amount of
space.

Sustainability data indicates that a $16,845 gap exists between actual wages for retail employees and the "living wage" necessary for a household on Cape Cod.

Big chain stores enlarge this gap by moving a larger portion of their jobs into lower paying categories. Nationally, although Wal-Mart has appeared on lists of top employers, it has also been accused of lowering wages, eliminating more jobs in competitors than they create, exporting jobs to sweatshops overseas, and not providing adequate fringe benefits.

Although it is known for lower prices, it has been charged with selling misleading imitations of name goods, economically strangling suppliers, and many other evils in its quest to provide lower prices,or the perception thereof.

About the only thing Wal-Mart's owners have never been accused of is sacrificing their own interest for the good of consumers or the community. Helen, Robson, John, Jim, and Alice Walton, descendants of Wal-Mart's founder, rank fourth through eighth on Forbes Magazine's latest ranking of richest Americans.

I went into a Wal-Mart store once in Waycross, Georgia, when I was visiting to see the Okefenokee Swamp. After departing my motel for an afternoon stroll, I encountered the Wal-Mart. Recognizing a tourist attraction for a naive Yankee, I walked its aisles for an hour, viewing nothing that has ever induced me to return to one of its siblings.

My heart and my brain occupy different bodies when it comes to superstores, caught between yesterday and tomorrow. My heart says no, but my brain wonders if the opposition is too little, too late, and too
parochial.

The coalition's charges merit close scrutiny. The inevitable dichotomy between providing better service and making more money seems to tip inevitably toward the latter as corporate size increases.

But isn't competition the American way? What's the difference between the Bradlees stores that are being replaced and the new occupants? And isn't it strange that some of the Cape¹s greatest benefactors from a development economy now want to be saved by the Cape Cod Commission and planning?

Asked what the coalition seeks, Executive Director Felicia Penn responds, "There needs to be rezoning, closing communities over-zoned for retail." But box stores seem to be restricted to former Bradlees
locations now.

Despite a graduate degree in business administration and 38 years in business, I don't know whether cumulatively giant stores are good or badfor the Cape Cod economy and I haven't read or heard anything that leads me to conclude that anyone else does. I do find myself tending to
believe the critics and trusting very little of what any large corporation says.

Understanding the economic impact of developments is as necessary and desirable as understanding the environmental impact.









"Copyright 2002, The Cape Cod Voice, all rights reserved. Reproduced by permission."


 

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