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."
"You whine and worry about China pulling itself out of poverty"
I don't want the chinese to remain in poverty. I want their government to be more democratic, and religiously tolerant. Corporations that continue to make their deals with the government are part of perpetuating the problem. At what price does low priced goods come? And since you seem fixated with being the self-designated WM cheerleader on this thread, and mistakenly portray my point as WM bashing, do YOU buy goods made in china? or it really doesn't matter to you from what country it comes from? Are you against Cuban cigars? In regards to trade and country of origin, are there any items that you are against? If not, then our discourse is completed.
You're right. It is how they keep prices low, but it also keeps sales low. Repackaging at home is a good idea, but a modern store should do it for you.
If you need three steak, you pick up one single and one double. For 9 steaks you pick up 3 packs of 3 each. Mix and match. It can work.
The only thing I'm fixated on is debunking your claims that a majority of the products Wal-Mart sells are made in China. You should become more fixated on facts if you are going to effectively debate these sorts of issues.
...and mistakenly portray my point as WM bashing
You never really made a point with all your posts and you've said nothing positive about Wal-Mart this entire thread. You even tried to incite others by willfully posting misinformation. I'd call that bashing. Your attempt to turn this thread into a discussion about China is akin to the protectionists here trying to steer free trade threads into debates over illegal immigration.
.... do YOU buy goods made in china? or it really doesn't matter to you from what country it comes from?
It depends on what kind of quality I'm looking for vs. the price. There are many who think that trading with China will allow them to buy the weapons to launch an unprovoked attack on our country.
Then there are others who look at where China is today compared to 20 years ago and believe that the reforms they've made show real progress. These same folks believe that the more entanglements China has with the West the less likely it is that there will be a conflict. Personally, I don't believe that these people will risk all their riches, earned by trading with the free world, by making war on the free world. Eventually, the Mao groupies will die off and a new generation will take over the CPC and will, hopefully, see the many benefits market reforms have provided their people and will embrace more economic freedom and political liberty.
Either way, China is a long way off from having what it takes to take us on. In the meantime, please forgive me if I don't put a skirt on and go running and screaming into the night.
Are you against Cuban cigars?
I love a good Cohiba when I can find one.
In regards to trade and country of origin, are there any items that you are against?
I'm a firm believer in the freedom to trade but support controlling goods and services related to national security. Other than that, I did own a French made car once. It was a piece of crap and I will never own another.
Ha! I found you out! A ringer if I ever read one!
Let me sum up your FR contributions:
Ad nauseum rants on:
1) household assets
2) household net worth
3) 100 million shopping at WM a week
4) Labor unit costs
5) fighting the gloom and doom
6) molested
7) weight control
You remind of the guy drinking in the "bah" that was cutting down Matt Damon's friend (Affleck) in Good Will Hunting. Damon's character's comment was "Yeah, I've read it to, so what?" I guess you've read a couple of books. But unless you've actually stood watch in a JOC for a few exercises, you have no f-ing idea what you are talking about.
So make sure you have your plastic jug handy when have to stand in line to get water and hopefully the mechanic standing in line behind you will find what you have to say as "original" and worthwhile.
Confidence runs the world. Once it is shaken, then might is right. And where can our might be threatened. One guy remains, and its a growing dragon.
As for Jersey in the 70s the 80s, Newport RI in the late 80s would blow it away.
Whatever those contributions may be, you will find that, unlike yourself, I back up my assertions with facts. I think what you've really done here is nothing more than to enumerate seven additional topics you are woefully unqualified to debate. I do hope to see you on an economics/trade or science thread in the near future.
you have no f-ing idea what you are talking about.
Now who's being sensitive? Of course, you know absolutely nothing about me or my background but hey, if you say so. Maybe we can meet on a China thread sometime and you can impress me with your factual knowledge on that topic too.
As for Good Will Hunting, I don't recall the scene you are referencing however, I do think it's funny that you would liken yourself to Damon's character, a math whiz, when you don't even know that 9% of something doesn't constitute anything near a majority. ROFLOL
Confidence runs the world.
And your lack of it says what about you?
And where can our might be threatened. One guy remains, and its a growing dragon.
Pssst, Ramjet, ...your skirt is showing..
As for Jersey in the 70s the 80s, Newport RI in the late 80s would blow it away
Why do you pretend to know things you know nothing about?
The problem in the very rural and sparesely populated states is not that Wal Mart sells cheaper... sure it does.
However, what Wal Mart doesn't sell... and thats a lot of stuff, particularly specialty items... will no longer be sold by anyone direct and local.
A small town hardware store will never sell stuff as cheap as a wal-mart.. but a small town hardware store can help you find the right part number for your model of equipment, find the right part to replace it and order it for you and have it for you next week. However it can't do that for you if it can't stay in business....
Now yes, you as an individual might be able to do the same thing, but trust me, its not an easy task... Hell, there isn't a box retailer in my area that stocks a simple replacement cartrige for my CO2 detector... they all sell the detector, but not a one of em carries the replacement sensor pack for it.
When there are no more little hardware stores left in drivable distance.... well you can basically ensure that servicing those not mass market items will become more costly and innefficient. Of course since our society is becomming more and more throw away anyway... why would anyone actually expect that they can get parts and service?
Box stores are great for certain things, but they are worthless when it comes to expertise and knowledge of products and support.
Not quite true. If the downward pressure on prices on manufacturers become so great that they cannot manufacture domestically... whether they are a US BASED company or not won't matter... they will move manufacturing overseas (and every manufacturing job creates another 3.5 additional jobs.. so for every 1 manufacturing job moved off shore over 4 jobs are lost)... Service on the other hand only creates about 1.5 support jobs for every direct hire.... and almost always are of lower pay.
So downward pressure by purchasers on manufacturers, results in offshoring, which results in lower wages, results in more downward pressure on manufacturers and more downward pressure on wages.... if you take that to its ultimate conclusion, you are left with wage deflation and general poor economic conditions.
As it is, adjusted for inflation the typical household in the United States has to have 2 folks working to bring home the equivalent of what 1 did in the 1970s.... There are no more folks to go to work to help keep up, short of polygamy becoming legal... so where do you think that puts the US in 30 years from now?
Things don't happen in a vaccuum.
Yeah Mase, what HE said.
(thought we lost you there for a bit)
Nah, I'm not lost... the blind leading the "free trade" is the solution to everything IMHO are.
Belief in bilateral trade agreements, and effective and proper use of Tarrifs and economic policy are Conservative ideals... "free trade" is just a sham and not based remotely in conservative principles.
"free trade" is just a sham and not based remotely in conservative principles."
Whooooweee! Elvis has entered the building! Mase........?
Still waxing about days in Jersey?
That's a big if. Do you have any proof that this is happening here? We manufacture and export more now than at any other time in our history. Wages continue to rise, unemployment is low and we have doubled our household net worth in the last 10 years. The race to the bottom must have gotten sidetracked. The ISM manufacturing index has risen for what, 28 straight months now?
they will move manufacturing overseas
Nothing new here. This has been going on for centuries. Manufacturing is constantly seeking out lower wages and greater productivity. From 1995-2002, China lost 15 million manufacturing jobs while the U.S. lost 2 million. Most of these losses were due to increases in productivity.
The best measure of comparative productivity levels is real GDP per employed person. According to the Bureau of Labor Statistics, in 2002 the United States continued to lead the world in this category.
We manufacture more now with fewer people. This is how we compete with third-world countries whose labor costs are a fraction of ours.
they will move manufacturing overseas (and every manufacturing job creates another 3.5 additional jobs.. so for every 1 manufacturing job moved off shore over 4 jobs are lost).
If this is happening here how is it employment and wages are rising?
and almost always are of lower pay.
According to the BLS, the average wage for production and nonsupervisory workers in professional and business services is $17.91 per hour. For manufacturing, the average wage is $15.67 (excluding overtime).
Professional and Business Services has created 4,074,000 new jobs since 1995 out of a total increase of 16,461,000. Incredibly, 25% of all new jobs created since 1995 have been in professional and business services which pays more than manufacturing.
So downward pressure by purchasers on manufacturers, results in offshoring, which results in lower wages, results in more downward pressure on manufacturers and more downward pressure on wages.
No, as indicated above, this is not happening. What is happening is that businesses are becoming more efficient which makes them more competitive. You only need to look at all the companies who are now copying Wal-Mart's supply chain systems for proof that driving costs out of the system makes us more productive and results in greater wealth.
adjusted for inflation the typical household in the United States has to have 2 folks working to bring home the equivalent of what 1 did in the 1970s....
Then how is it we are able to afford so much more now than we did in 1970? Look at all the quality improvements in homes, autos, medical treatment, pharmaceuticals etc. Take homes for example, from 1980 to 2000 wages grew faster than the cost per square foot of a home and that includes the numerous qualitative improvements in home building since then.
It was also true, however, that many individuals in lower class families in 1993 had higher real income than individuals in middle class families had in 1969, because sizeadjusted U.S. median real family income grew by more than 20 percent between 1969 and 1993. Thus, despite the fact that these individuals were no longer part of the middle class, they and their families had greater access to goods and services than some middle class individuals and their families had in 1969. This is one reason why the continued rise in per capita consumption is a better barometer of real economic wellbeing.
Here's another good article that dispels the myth that we were somehow better in 1970 than today.
These are the good old days: A report on U.S. living standards
...So where do you think that puts the US in 30 years, from now?
Well, all I need to do is look around and I can easily see how much better off I am than my parents were 30 years ago. By understanding how this all came about, I am certain that my children will have it better than me 30 years from now. This process has also been going on for many centuries.
Yeah, sure. NAFTA was Reagan's vision. It was the Reagan administration that launched the Uruguay Round of multilateral trade negotiations in 1986 that lowered global tariffs and created the World Trade Organization.
It was Ronald Reagan who said in 1986:
Ronald Reagan wasn't a conservative?
"The freer the flow of world trade, the stronger the tides of human progress and peace among nations"
Ha ha. China was doing such a good job back on human rights back then in 1995, that they didn't get admitted until 2001. Even Angola, Chad, Cuba, beat them. Maybe this had to do with them taking over Hong Kong.
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