Posted on 10/10/2005 9:06:22 AM PDT by flixxx
With Wal-Marts come tough choices
BY PAUL HAMMEL
WORLD-HERALD STAFF WRITER
NEBRASKA CITY - From the wooden aisles of his 51-year-old hardware store downtown, Walt Wenzl calls Wal-Mart a greedy corporation that mainly sells foreign-made products.
Hardware store owner Walt Wenzl isn't afraid of a new Wal-Mart planned for Nebraska City, Neb.
"As long as the good Lord is willing, I'll be here," said Wenzl, 77. "To hell with Wal-Mart."
Yet others in this river town of 7,228 say they welcome the building of a Wal-Mart Supercenter here. They say it may provide better paying jobs and keep shoppers from traveling elsewhere for merchandise.
"I won't have to drive to Omaha," said Lori Stipe, a convenience store clerk who also plans to check out employment prospects there.
After opening supercenters in or near all but one of Nebraska's 20 largest cities, the company that was born in a small town in Arkansas appears to be returning to its roots.
Besides Nebraska City, Wal-Mart is seeking to build a supercenter 24 miles up the road in Plattsmouth, population 6,893. Wal-Mart recently broke ground in South Sioux City, population 11,925, and went public with plans for a supercenter in Fairbury, population 4,262, to replace the company's first outlet in the Cornhusker State - a discount center it built 23 years ago.
Wal-Mart is looking for opportunities in the Holdrege and Ogallala areas, a company official acknowledged, even as it seeks to build a third store in Lincoln, the state's second-largest city, and at the former Ranch Bowl property in midtown Omaha. And the talk of supercenters possibly coming to other towns of 3,000 to 9,000 - places like Alliance, O'Neill and Valentine - is as widespread as blackbirds over autumn cornfields.
Wal-Mart's aggressive expansion plans prompt debate in communities across the country.
Some fear that the world's largest retailer, known for its array of discounted goods, will methodically drive small operators out of business, depress wages and devastate local main streets and stores in nearby towns.
Others, however, see a company bringing sorely needed jobs with benefits - Wal-Mart says its average hourly wage in both Nebraska and Iowa approaches $10. And many rural residents like the convenience of having their own Wal-Mart.
There also is a practical reason for Wal-Mart's renewed emphasis on small towns - the company has found it difficult to enter big-city markets, where planning and zoning regulations can be hard to overcome, said Burt Flickinger III of New York, a retail consultant who advises Wal-Mart competitors.
A company spokesman said there is "no particular grand strategy" to its move into smaller towns, but he said the company is always looking for opportunities, even if there's already a supercenter nearby.
"We are constantly evaluating locations across the country so we can serve our customers better or reach new customers," said Ryan Horn, an Omaha native who is the company's community affairs manager in several Midlands states.
"We're just looking closely at Nebraska right now, and you're seeing the results," Horn added.
In the past two years, since opening a distribution center at North Platte, Wal-Mart has opened 11 new supercenters, which include groceries, in the state and has six more under way. Southwest Iowa, meanwhile, has seen two new supercenters in the past year, one at Creston and one at Atlantic. The border towns of Yankton, S.D., Vermillion, S.D., and Marysville, Kan., also have new supercenters.
When the Nebraska distribution center opened, officials said it could supply 35 stores within 250 miles. Horn said the center has plenty of capacity for more stores and that other distribution centers are available to supply Nebraska's needs.
Those kinds of numbers have fueled talk of Wal-Mart coming to several towns.
In Holdrege, the executive director of the chamber of commerce got a shock when she received a drawing of where a new Wal-Mart would be located in that south-central town of 5,636.
"No one knew where it came from, or if they're even going to build a store," said Kara Mueller. "But the rumors were circulating around town."
In O'Neill, population 3,733, chamber executive Pat Fritz said the speculation about Wal-Mart locating there is so strong that it's made some other businesses think twice about locating there.
"We hope that whatever is going to happen, they say 'yes' or 'no' so we know," she said.
The two officials, and other small-town chamber representatives, said Wal-Mart would likely be welcomed by townspeople because they want their town to grow and want to keep shoppers at home.
"I know we want one," said Carrie Walker of the Ogallala Chamber of Commerce. "Our nearest one is 50 miles away."
As in many towns, Nebraska City residents voiced mixed feelings when Wal-Mart announced it was coming.
Known for its outlet stores and as the home of Arbor Lodge and the Lied Conference Center, Nebraska City has already seen a migration of merchants out of downtown to the freeway that skirts the south and west edges of the town.
Wenzl, whose traditional hardware store sells hefty wrenches, cast-iron skillets and bills itself as "Your Radio Flyer Headquarters," has remained downtown along the brick Central Avenue. He emphasizes personal service and American-made products, though admits that even some of his best wrenches are being made in Taiwan.
Wenzl said he's saddened by Wal-Mart's impending arrival, and wonders how many stores the company needs to build. After all, he said, there's already a Wal-Mart 32 miles to the east in Shenandoah, Iowa, one 35 miles north in Bellevue and another about 45 miles to the west in Lincoln.
Horn, the Wal-Mart spokesman, said his company wouldn't be coming if customers didn't want it.
He said Wal-Mart found that shoppers from the Plattsmouth area did $18 million of business annually at the Bellevue supercenter. Horn said he couldn't cite the extent of Nebraska City shopping at Bellevue and Lincoln stores, but it was enough to convince the company that a supercenter was needed at Nebraska City. That will help shops like Wenzl Hardware, he said.
"No one's going to shop in his store if they're up in Bellevue," Horn said.
Across the road from Wal-Mart's planned location in Nebraska City sits Norman's IGA, one of the town's two grocery stores - the businesses that traditionally take the biggest hit when a supercenter comes to town.
Pip Stehlik, whose family has been selling groceries in town for 55 years, was philosophical - people in town want a Wal-Mart, and you can't keep the company out.
"Sure, they'll take some business from us. But everyone takes business from us," Stehlik said. New restaurants, he said, draw people out to dinner instead of buying his groceries, and other retailers have begun selling grocery and liquor items.
"We just have to focus on what we do best," he said. "When it's all said and done we'll be a better operator."
Mayor Jo Dee Adelung said she worries about how small retailers might be hurt when a supercenter opens, but she figures Wal-Mart fits in with the reputation of the city "as a small town with big things" and that it will increase local tax revenue.
Adelung also was encouraged by Wal-Mart's pledge that it will support local causes, be a good employer and consider planting more trees in its parking lot in concert with the "Home of Arbor Day." Wal-Mart recently was honored by the National Arbor Day Foundation, based in Nebraska City, for saving trees in building a Florida supercenter.
In the end, the mayor joined in the unanimous city council votes to approve Wal-Mart's plans.
"You can't legally say no," Adelung said, "but I hate to see Wal-Mart come into all of these little communities."
i find it amazing that everybody criticises Wal-MArt because they sell stuff cheaper - as if that's a sin. why shouldn't people be able to buy stuff cheap?
and when the community needs something, how many "little stores" chip in the big bucks to help out - like WM did after Katrina? I didn't see any local NOLA stores giving stuff and cash to the cause. only looters, and they looted WM too.
I mean, why should cottage cheese be unaffordable??
"i find it amazing that everybody criticises Wal-MArt because they sell stuff cheaper - as if that's a sin. why shouldn't people be able to buy stuff cheap?"
My only problem with Wal-mart is much of what they sell comes from CHINA, whom we spend billions of dollars in preparation to go to war against them. So, in a sense, our purchases at Walmart, Target, Big Lots, and numerous other corporations, is funding our communist foes.
If these corporations bought their inventory somewhere else and the majority of their products didn't say MADE IN CHINA, i really don't have a problem with it.
I forget the specific reference, but I recall reading that families in communities in which there is a WalMart have about 10% (or more) more money at the end of a month due to the lower costs for items...sorry I do not have the actual reference with me.
I think some people are upset that companies like Wal-Mart support communist countries. Also, the changing attitudes of companies like Wal-Mart who once was pround to say "made in America". Thats all.
a lot of places sell MADEINCHINA stuff, not just Wal-Mart. nobody forces anybody to buy chimnese made stuff. you can read the label and decide accordingly if that's what you want.
but if you need a jacket and want to get it for less money, isn't it better to have the option?
or is it preferrable to force everybody to adhere to one's personal buying preferences.
I don't like china either, but i would not be one to erradicate it off the shelves either.
you might very well be correct, AND there are more people with jobs that pay better and have benifits.
more people making more selling more stuff to more people. i can see why the libs hate WM...
gotcha. i wish they'd go back to selling only made in the USA stuff meself.
but since i buy almost all of my clothes at Good Will, I seldom go into WM at all. maybe once a year or so...
Costco engages in the same business practices as Wal Mart but you never hear about people protesting a new Costco coming to town because they gut local economies. Why? Because Costco is from Washington state and they contribute to liberal politicians. So if you believe the media, Costco is as good as gold but Wal Mart is the face of evil. Whatever...
"a lot of places sell MADEINCHINA stuff, not just Wal-Mart"
That's my point, which you seemed to have missed. Why can't Wal-mart be a national corporate citizen and buy their stuff from India, Morocco, Macedonia or any other 200 nations until China gets on board. That would cut them off at the knees. And all those highways they are building with our dollars to allow their tanks to roll the countryside to crush democratic and religious movements, and prepare for a counter-attack from us would be roads for rickshaws.
"If these corporations bought their inventory somewhere else and the majority of their products didn't say MADE IN CHINA, i really don't have a problem with it."
While I tend to agree with your sentiment, I find it a little myopic. Sure Wal Mart carries a lot of Chinese-made products. What store chain doesn't? Why single out Wal Mart?
WM is not on earth to be the arbitrator of which nation is worthy or not. that is not what they are for.
I generally do not buy anything made in china. that's my choice. you may chose to buy or not - your choice. what I will defend is the right of anybody else (WM included) to make their own choices.
WM sells stuff cheap. that's what they're supposed to do. WM is not around to perform the kind of international global socialization that governments cannot or will not do.
Yes but what about businesses here that can't even make products that cheap. I.E. higher pay and expensive materials. If you keep saving that little bit of money then these companies close or don't even become. Less jobs = no money to buy Chinese or American. We will soon all work for Wal-Mart.
Right after Katrina, even before the racist government was there to help after they blew up the levees, there were the Walt Wenzl trucks, loaded up with $20 million worth of supplies, food and wa-.....what? They were WAL-MART trucks, NOT Walt Wenzl trucks? Oh, never mind.
The problem with Wal*Mart is the lousy quality of stuff on their shelves. It's very sad how people will become accustomed to junk just because it is a few cents cheaper compared to the durable items in the store next door.
A great example is bicycles...the ones from the big-box discounters don't even have bearings inside. They just have a pressed piece of nylon in the headset and bottom bracket that can't even be rebuilt. The bicycle is just a disposable item in their mind.
~ Blue Jays ~
this is not necessarily true. companies that cannot compete in one market may compete very well in another. to raise prices artificially in order to "save" some entity is protectionism and history has shown that protectionism doesn't work. in fact it has disasterous results.
well you may be correct. at my age buiying a bicycle would be a sure sign of dementia;-)
but maybe that's what people want. the way kids today beat the heck out of their bikes, it's a wonder anything can stand up to that.
mmmmm! creamed cottage cheese....
The fact of the matter WM does provide better jobs. has anyone ever seen a Mom'Pop store pay anyone more than Min. wage and employ more than one or two people? Nope. Plus you can actually get what you need, instead of having to drive to a bigger city where the larger stores can afford to actually stock what you are looking for.
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