March 27, 2005
Wal-Mart in Snohomish County

Wal-Mart is typically Matt's beat, but this rather good article about Wal-Mart in the Everett Herald caught my attention. It's nicely balanced, getting quotes from the usual anti-Wal-Mart suspects--the grumpy union member, the jealous competitors (who are getting their tails kicked) and the full-time anti-Wal-Mart activists who make their living trying to make the rest of us spend more--and from the normal people, who are just big fans of saving money. In case you're unclear, I'm a big Wal-Mart fan.

As such, I'm generally pleased to hear that there are going to be as many as four new Wal-Marts in Snohomish County, adding to the two that exist currently--the Supercenter in Tulalip and the regular old Wal-Mart in Mill Creek, where I can be found more often than I care to admit.

The first one up will probably be along 99 in my old stomping grounds of South Everett. There doesn't appear to be any real opposition to this store, which makes sense for a few reasons. First, there's no strong community organizations in the area, which is populated largely by apartment buildings. Secondly, it's a logical location and there are already quite a few big-box stores in the area. This Wal-Mart will probably drive some good economic growth in the area, which helps everyone.

Next up, if Wal-Mart gets its way, is Smokey Point, which the Herald article notes will take some pressure off the Tulalip Supercenter--which is, I can attest, a good thing. The article makes it sound like, though there is some resistance, it's not enough to prevent Wal-Mart from coming--details about the process are available here.

The most active debate recently has come regarding the proposed Stanwood Wal-Mart--see articles here and here, and even an abortive blog on the topic. The opposition to this one is the strongest in the area, so it will be interesting to see how this will play out. Stanwood seems like a logical spot for a Wal-Mart, sitting in a 30-mile gap between Wal-Marts in Mount Vernon and Tulalip, but there might be enough wealthy Seattle transplants (like this one) to keep the it out.

Last, and most odd, is the potential second Wal-Mart in Mill Creek. The current Mill Creek Wal-Mart is on what might be the most expensive piece of land of any Wal-Mart in the nation already (leading to a higher class clientele and better overall upkeep than your traditional Wal-Mart), so it seems a little strange that they'd be planning another one. It seems like it would make more sense to put one farther east, in Snohomish or Monroe, than another one so close to what will be two preexisting Wal-Marts. These letter writers certainly don't like the idea, but it sounds like the majority-Republican city council is one of the more amenable governments in the region, and is happy to snap up the opportunity if possible. Does it make sense for Wal-Mart, though? Only Wal-Mart can decided that.

Likewise, only consumers can decide whether Wal-Mart is good for them. Generally, they seem to think it is. It makes sense to me--Wal-Mart helps me live as if I were much wealthier than I really am, and I appreciate that. I don't appear to be alone, even in Snohomish County.

Cross posted at The Flag of the World.

Posted by Timothy Goddard at March 27, 2005 09:39 PM | Email This
Comments
1. We are facing a similar situation here in Whitman County. Wal-Mart wants to put in a super center in Pullman. A lot of Pullman businesses don't want it.
There is a regular Wal-Mart in Moscow, 8 miles from Pullman. I live in Colfax. I drive the extra miles to Moscow because I save $ not only on my purchased items from Wal-Mart, I also save on sales tax. It's 5.5 percent in Moscow vs. 7.8 percent in Pullman.
I probably wouldn't shop at the Pullman store for that reason alone. I hear they will probably close the Moscow store after they put in the super center. That would be too bad. I will add a few more miles and drive to Lewiston where I can also go to Costco.

Posted by: cc on March 27, 2005 10:07 PM
2. We are facing a similar situation here in Whitman County. Wal-Mart wants to put in a super center in Pullman. A lot of Pullman businesses don't want it.

Yes, typically results in the downtown being gutted. Then cities need to spend millions in tax dollars to re-vitalize them.

Oh well. People seem to like them and don't mind subsidizing them when their employees are sent to receive welfare in one form or another because of their low pay.

The worst that could happen is that area businesses go out and their employees are forced to...well...shop at Walmart.

Posted by: Erik on March 27, 2005 10:26 PM
3. Erik, what in the world are you talking about? Have you ever seen a downtown gutted by Wal-Mart? I've been to quite a few Wal-Marts all across the country, and a) they're almost always outside the main city center, and b) they're almost always surrounded by restaurants, services and other stores that wouldn't exist without them. The Tulalip and Mill Creek Wal-Marts are pretty representative of this.

I'd prefer the discussion here remain based in reality, so please, leave the anti-Wal-Mart rhetoric at home unless you have some sort of facts to add to the discussion.

Posted by: Timothy on March 27, 2005 10:34 PM
4. Erik,

Perhaps instead of subsidizing mediocrity with our tax dollars, people should attempt to innovate, educate, and compete.

And if you haven't noticed, the previous post mentioned the 7.8% taxes versus the 5.5%. Oh what I would give to "only" have to pay 7.8% in sales taxes. But, alas, Wal-Mart ought not be the worst of your concerns, Erik. We are already seeing stores pop-up on tribal land, where NO sales tax is needed. This phenomena will explode... and before Illegit-oire knows what has happened, it will be too late. Even if the State does figure it out, there's nothing they can do. Tribal land is not a part of the State of Washington. (just a thought)

YourGovernorCostsMillion$
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Posted by: YourGovernorCostsMillion$ on March 27, 2005 10:39 PM
5. "the regular old Wal-Mart in Mill Creek, where I can be found more often than I care to admit."

Becuase your house is full of cheap crap you really don't need?

Whatever happened to quality over quantity?

Posted by: Doc on March 27, 2005 11:04 PM
6. Go Walmart. No one is gauranteed anything in the USA, and that is what makes this country great. If Main Street is gutted by Walmart, it's because those businesses did not learn to think smarter than Walmart and provide a different level of service, or something else that Walmart can't provide.

Walmart rules because they bust unions. Check out the stories about the Walmarts in Canada where the Unions tried to butt in and change they way Walmart does business. Walmart management did the right thing and shut them down.

Walmart is naked, beautiful capitalism at it's best. If you can't take the competition, move to Canada where the government gives you a free ride.

Thanks for the post Timorthy.

Posted by: Jeff B. on March 27, 2005 11:09 PM
7. Walmart hires the people that the unions wouldn't hire. I get so tired of people like Erik complaining of Walmart. My daughter's boyfriend works at Walmart and makes pretty good money for having no formal education past our public high school education system. He makes almost as much as my daughter who is a manager at another retail store (which also isn't union) why do they just pick on Walmart? Because they manage to be successful and hire people so they won't be on welfare? They work better than unions in my opinion.

Posted by: Miriam on March 27, 2005 11:12 PM
8. Becuase your house is full of cheap crap you really don't need

Here, folks, we see liberal elitism at its finest. Doc, I wonder if you've ever even been to a Wal-Mart. You've certainly never been to my house--oh, wait, I live in an apartment, because I'm a young newlywed who can't afford the finer things in life. Or at least, I couldn't if Wal-Mart didn't exist. As it is, I can get things like digital cameras, printers and DVD players that I wouldn't be able to afford otherwise. They may not be the best quality, but they're better than nothing.

Additionally, I can buy household items that I need to buy anyway at vastly cheaper prices than I could get anywhere else. This gives me more money left over to do things I might not be able to afford otherwise, like run a blog, take my wife out for dinner, and take a nice vacation. And I'm not the only one who benefits like that.

So, "Doc", you can take your assumptions about Wal-Mart and about me and stick them where the sun don't shine, comprende?

Posted by: Timothy on March 27, 2005 11:32 PM
9. We could use some Wal-Marts in the east and north of King County. The four present locations are in Renton, Covington, Federal Way, and Auburn. This makes less than 40% of King County's people being served by a Wal-Mart store.

By the way, Timothy, the Republican-dominated council you are referring to would be the Snohomish County Council, and not any city council.

Nor does the Snohomish county council have that much to do with Wal-Mart's two existing locations. One of them is in the City of Lynnwood -- a city issue. The other is on the Tulalip Reservation (Quil Ceda). The Tulalip Tribes aren't exactly known as a pro-Republican organization.

Posted by: Richard Pope on March 27, 2005 11:41 PM
10. Maybe while Fraudoire and the Rat cronies were cutting the deal with the tribes and Walmart, they missed the opportunity to bring a brand new 3-4 BILLION dollar Intel fab into our state...along with a couple thousand decent paying tech jobs with health care benefits. Oregon, AZ, China and probably some spots in the EU sure aren't missing the opportunity. Washington is blatantly missing from the list of states looking to gain a fab.

But hey- its better to soak every last drop of blood from existing businesses and complain about bottom feeding Walmart than to bring businesses into the state. Look on the sunny side, there'll be plenty of DSHS jobs for everyone with the money they soak up from broken families and bankrupt businesses!!

http://money.excite.com/jsp/nw/nwdt_rt.jsp?news_id=bus-n06374765&feed=bus&date=20050306

Posted by: Andy on March 28, 2005 12:23 AM
11. I've been to quite a few Wal-Marts all across the country

and the regular old Wal-Mart in Mill Creek, where I can be found more often than I care to admit.

Knock youself out. It's a free county.

Here's my beef:

The report estimates that a two-hundred-employee Wal-Mart store costs federal taxpayers $420,000 a year, or about $2,103 per Wal-Mart employee. That translates into a total annual welfare bill of $2.5 billion for Wal-Mart's 1.2 million US employees.

http://www.ericrasmussen.com/2005/01/wal-mart-economic-exploitation-at-its

Why should I subsidize them with corporate welfare?

Posted by: Erik on March 28, 2005 12:25 AM
12. King county math at the PHD level. Perhaps it would be better if two-hundred-employees weren't working at all?

This is the same math were a housewife should be compensated $150k per year for working as a full time chef, day care owner, chauffer, hooker, and maid. First cousin to the math that 1 in 3 men are either a wife beater or rapists.

Posted by: Andy on March 28, 2005 12:31 AM
13. "Becuase your house is full of cheap crap you really don't need?"

As opposed to what... a house full of expensive, overpriced crap he really doesn't need?

"Whatever happened to quality over quantity?"

Some of the "cheap crap" I'v bought at Walmart has lated for years. And most of it is the same stuff I'd get somewhere else for more money.

Walmart caters to a certain crowd, and if you're too stuck up to shop there, or it's somehow beneath you because it's "Walmart" and not, say, "Macy's"... more power to you, but please don't deride the place because it's not overpriced.

Posted by: Mike H on March 28, 2005 12:35 AM
14. Because they manage to be successful and hire people so they won't be on welfare?

Actually see my post above, they do place people on welfare who work there and expect taxpayers to pick up the financial slack.

Posted by: Erik on March 28, 2005 12:36 AM
15. Erik,
"Here's my beef:

The report estimates that a two-hundred-employee Wal-Mart store costs federal taxpayers $420,000 a year, or about $2,103 per Wal-Mart employee. That translates into a total annual welfare bill of $2.5 billion for Wal-Mart's 1.2 million US employees.

http://www.ericrasmussen.com/2005/01/wal-mart-economic-exploitation-at-its"

Perhaps you should try quoting something real...not just one person's views or a clearly biased groups views. Show me proof that Walmart employees are living on welfare. And if they are, yet still working...why are they collecting welfare if they are working? They get paid pretty good money. Would the unions hire them if they didn't work for Walmart? Would you prefer these employees that supposedly are still collecting welfare collect full welfare instead of contributing some to society?? Would your precious unions hire the elderly or the challenged? I think not!

Posted by: Miriam on March 28, 2005 12:40 AM
16. Erik,

Thanks for responding to none of my posts. Your simple complaint about a corporation costing the tax-payer millions via its employees is lost on me. I fail to see how I am paying for Wal-Mart employees. I don't fail to see, however, how Wal-Mart employees have to pay income tax, Medicaid, Social Security, etc. I do, however, see how IFFA, and other unions waste my tax dollars by claiming that they "need" equipment that requires extra firefighter to be hired by my city/county (when in fact, the current equipment is perfectly fine). A cost analysis of that pork, spread out over many year, healthcare, and retirement, has yet to be done, and I suspect you're too pro-Union to do it. Unions often are self-interested, and in the case of IFFA it's ALWAYS at the taxpayer's expense.

If you have a problem with Wal-Mart, please combat them on a level playing-field (as suggested by other people's posts above).

If you want to complain about wasted tax-money, you don't have to look far because...,

YourGovernorCostsMillion$
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-Blame a subordinate, lose + legal fees ($4m)
-Count the ballots three times ($.7m)

Posted by: YourGovernorCostsMillion$ on March 28, 2005 12:51 AM
17. Show me proof that Walmart employees are living on welfare.

Use "Walmart Welfare Workers" on google and you will find literally dozens of articles on the matter.

And if they are, yet still working...why are they collecting welfare if they are working?

Yes. Yes. That's the crux. They pay so low that some of their employees qualify for welfare.

I suppose because of Washington's minimum wage, some employees are kept out of welfare because Walmart is forced to pay the workers more than their "market value."

However, I would rather have them pay than having to personally pay the workers welfare benefits.

I fail to see how I am paying for Wal-Mart employees.

You wouldn't unless you pay either state or federal taxes.

Posted by: Erik on March 28, 2005 01:00 AM
18. Last I heard Wal Mart was the leading retail store in the nation. Must be doing something right despite the BS some people like to spin on them. I suspect they would not be the top chain if a broad base of America did not shop there often. The Parking lots are always full. Gov's must be making a killing in Sales Tax and Gas tax, and and and and every other tax from them.

I am proud as hell that an individual (Sam Walton) who had a dream and the spirit to create the largest retail outlet in the country and spreading around the world. If you don't know what raw efforts and courage it took to create a dream like this, then you have no business being blindly critical of it. Millions of Tons of goods are bought, transported, and sold in these stores every day. They ain't goin away!

Posted by: GS on March 28, 2005 01:12 AM
19. Erik,

I see how you skirted my question about your wonderful unions hiring these individuals. I know of people personally working for Walmart and they make pretty good money. I wonder how many of the Walmart workers that are working and collecting welfare are doing so fraudulently. Bottom line is that Walmart provides income to people who otherwise wouldn't have a job. Like it or not, Walmart is a very good member of the economic world. They help many people, I would bet more than the unions.

Posted by: Miriam on March 28, 2005 01:34 AM
20. I wonder how many of the Walmart workers that are working and collecting welfare are doing so fraudulently.

Hard to know. Though it shouldn't be too hard to find out as the welfare issues have been well looked into.

I know of people personally working for Walmart and they make pretty good money.

Yes. However, many of them likely are having their wages artificially inflated by Washington State's minimum wage requirement even if their wage is above the minimum.

Washington has one of the highest if not the highest minimum wages in the US.

If it were removed, their wages would float down to their market rate or at least stop at the federal minimum wage of $5.15 per hour.

Posted by: Erik on March 28, 2005 01:48 AM
21. Erik,

Are you actually implying that Walmart is the only business in Washington state that is paying their employees higher rates soley because Washington State's minimum wage is so high? And who do you feel is responsible for the high cost of living in this state and the high minimum wage? If Walmart is not the only business in Washington State that is paying their employees higher rates soley because Washington State's minimum wage is so...why are you only ragging on them? What about Mervyn's? What about Macy's? Do you shop at any of these places? What about the education system? I worked at a public school for a little while and was not a teacher and I barely made $1,000/month. Why are you not upset about other businesses in this state paying their employees lower wages than union members get?

Posted by: Miriam on March 28, 2005 01:57 AM
22. Erik,

I'm beginning to see the flaw in your illogic:

"Yes. Yes. That's the crux. They pay so low that some of their employees qualify for welfare."

This is fantasy over reality. I saw the same thing when I was a 26 year old Company Commander in the U.S. Army, right after dumbheads like Albert Gore Jr. were claiming that U.S. soldiers were on food-stamps. I had numerous soldiers apply to me for relief monetary aid... essentially, emergency aid (in the form of donated, non-tax dollars) to help them with their struggling financial situations. Sometimes I approved of the aid, but always after an interview with the soldier and one or two of his NCO's (non-commissioned officers). What I always found among all applicants was a lack of budgetary responsibility (sounds like Congress, no?) in the form of frivilous spending on non-essential items (e.g. a cell phone, two automobiles, or automobile and motorcycle, etc., etc.). They often had newer cars than me.

So I'm not amenable to your argument Erik. It's very likely that there's overspending. And overspending doesn't necessarily equal underpayment. Many people in the USA are living beyond their means. Blaming Wal-Mart for someone's lust for better (cars, furniture, "fill in the blank") is ridiculous. And I suppose you'd like to legalize "theft" (when it comes to stealing from me) in order to cover the gap for "poor" Wal-Mart employees. Oh wait, Ron Sims already does that. Robin Hood was a thief, and if you advocate this crap, then so are you.

YourGovernorCostsMillion$

Posted by: YourGovernorCostsMillion$ on March 28, 2005 01:57 AM
23. What's really funny is that Erik started out claiming that Wal-Mart "destroyed downtowns," but then quickly changed his complaint when I called him on it.

Now he just wants to dictate Wal-Mart's pay structure to them. The average Wal-Mart pay is either $8.50, $9.26 or $10 an hour, depending on how you're counting, all of which are well above even Washington's absurdly high minimum wage. They provide great entry level jobs with huge opportunities for advancement for people who would otherwise have a difficult time finding work anywhere.

Posted by: Timothy on March 28, 2005 08:19 AM
24. The Internet - STAR magazine without an editor!

Erik, I did that "Walmart Welfare Workers" search and found a lot of upset people making unsubstantiated claims. As far as "ProgressiveNews.org", well, they did not say anything supported with data. They did say that WalMart, like every other company and sports franchise, tries to get cities/states to compete for where they set up shop. That is different than welfare subsidies paid to employees.

If the community did not like the WalMart, then the community doesn't need to shop there. If the whole community really believed that WalMart was no good, that store would lose money and WalMart would close it and put the employees out on the street. In this country, thank goodness, we have a choice of where we shop and can't be told what to buy and from where to buy it because someone doesn't like that store.

If you do not have something bad about you on the internet, you haven't done anything worthwhile!

Posted by: Fred on March 28, 2005 08:29 AM
25. Richard Pope: No, in reference to the possibility of a second Mill Creek Wal-Mart, I was specifically referring to the Mill Creek City council, 3 of the 5 of which are Republicans.

Posted by: Timothy on March 28, 2005 08:46 AM
26. You asked for evidence of the negative aspects of WalMart. A quick Google search reveals:

http://reclaimdemocracy.org/walmart/tennessee_workers_medicaid.php

http://cecd.aers.psu.edu/pubs/PovertyResearchWM.pdf

http://www.againstthewal.com/walmart.pdf

http://edworkforce.house.gov/democrats/WALMARTREPORT.pdf

And to be "fair and balanced":

http://www.mises.org/fullstory.aspx?control=1521

And just for fun, an article that originated in the Wall Street Journal comparing Costco and WalMart.

For the record, I'm a Costco guy. Wouldn't be caught dead in a WalMart.

Posted by: Steven on March 28, 2005 09:26 AM
27. Sorry, I forgot the link on the Costco article.

http://reclaimdemocracy.org/articles_2004/costco_employee_benefits_walmart.html

Posted by: Steven on March 28, 2005 09:28 AM
28. I wasn't a Wal-Mart shopper until a month ago. I just got fed up with the anti-Wal-Mart snipping by the totalitarian, corrupt unions. The last straw was an angry letter to the Olympian from union lackey & freshman 22nd district legislator Brendan Williams. After writing a response to union lackey Williams, I went to the relatively new Hawks Prairie Wal-Mart in Lacey; I am hooked. I was being ripped off elsewhere. I can't wait for them to build a Wal-Mart in Tumwater & I am going to write Wal-Mart a letter about putting a Sam's Club in Thurston County. Costco could use a little competition down here.

Thanks union lackey Brendan Williams for opening my eyes & making me a Wal-Mart shopper. I have already have converted three formerly too elitist for Wal-Mart friends into becoming Wal-Mart shoppers too!

Posted by: kingdome on March 28, 2005 09:39 AM
29. The TN medicaid article states that WALMART is also the largest employer in TN, so it is no surprise. With people not sticking to their jobs, it is no surprise they haven't got medical. Every corp I've worked for has always had a time before eligibility, so WalMart is no difference. This also comes from a group with a byline "Restoring citizen authority over corporations". They never had it nor should they, so why say restoring? Corps are owned by citizens who invest in them, not by the masses.

In the PSU article it seems to blame WalMart for the manufacturing jobs going else where, which does not mean that a WalMart in their midst reduced demand for the manufactures product worldwide. There was a general decline in US manufacturing during that time. The boom was technology.

Posted by: Fred on March 28, 2005 10:05 AM
30. If Erik and others want to just cherry pick crap off the web, at least look at the other side of things:

www.walmartfacts.com

Yes, it is a Wal-Mart website. Of course, many of the websites that come up in the Google search are done by unions and union shills. The mighty Univ. of California study referred to on many of these was 100 per cent paid for by unions fighting Wal-Mart's every step...

Posted by: SnoCo Voter on March 28, 2005 10:20 AM
31. If Walmart indeed can save most consumers 30-50% on their purchases (my own experience based on shopping in multiple categories throughout the store), at a welfare cost of only .8% of gross sales (a statistic that is completely bogus, but let's let it stand just for the sake of this argument) while remitting, on average, 7-8% in sales tax to various governmental entities (plus property, income, social security and medicaid taxes as well), then it has to be the greatest boon to the American consumer and taxpayer since, well, ever.

Posted by: HT on March 28, 2005 10:36 AM
32. And still no answer from Erik or his ilk in response to my question as to whether or not their unions would hire the people who Walmart hires. The retirees, the mentally and physically challenged (not sure if that is PC wording or not this week), and the people who have little formal education past our public education systems; would your unions be willing to hire these people or not? If you are soooo concerned for the livelyhood of these people, put your union's money where all your mouths are and hire all these people. At least Walmart gives people jobs out there and well above this state's inflated minimum wage. It would seem you would rather have these people unemployed than working a job that provides an income.

Posted by: Miriam on March 28, 2005 10:39 AM
33. Of course, the beauty of this experiment in capitalism is that:

1. If you don't like them, don't shop there!
2. If you don't like the way they run their shop, don't work there!
3. If you want to see them fail, build a better mousetrap!

(Or just continue to do things the democrat way - lie, cheat, steal, rinse & repeat ;'}

Posted by: alphabet soup on March 28, 2005 10:58 AM
34. "First cousin to the math that 1 in 3 men are either a wife beater or rapists."

You hit the nail on the head, Andy. There is no end to the nonsense, silly-math that these people will come up with in order to further some social engineering agenda.

I have a post about Walmart on my blog here:

http://sillyseattle.blogspot.com/2005/03/wea-vs-bogyman.html

Posted by: DeadManVoting (aka Iguana) on March 28, 2005 11:18 AM
35. It's very likely that there's overspending. And overspending doesn't necessarily equal underpayment

Blaming Wal-Mart for someone's lust for better (cars, furniture, "fill in the blank") is ridiculous.

If so, I might agree.

However, the problem is that having large debts does not entitle someone to collect welfare. Only low wages among other factors do.

Look, if you are comfortable subsidizing them by paying the welfare rolls and want to work and shop there, be my guest. In fact, one may mandate the other.

For the record, I'm a Costco guy. Wouldn't be caught dead in a WalMart.

Nah. I wouldn't go that far.

Posted by: Erik on March 28, 2005 11:19 AM
36. Steven’s comparison of Wal-Mart employee compensation with Costco’s is definitely comparing apples and oranges (by the way, I’m a fan of both stores and shop at both regularly). This is the latest canard in the anti Wal-Mart argument repertoire with the WEA recently using the comparison in a rant linked by SoundPolitics.com where they are considering not reimbursing teachers for items bought from Wal-Mart for needy students. Yes, Costco compensates its employees well, but is able to do so by deliberately adhering to and refining a model that reduces the number of employees necessary in their operation. They do this through
(1) Limited product offerings. A Costco warehouse maintains about 4,000 different items compared to 100,000 in a Wal-Mart Supercenter, with commensurate reductions in labor for everything from inventory to product handling.
(2) Simple displays. In Costco’s warehouse model, items are typically sold directly off a pallet rather than a traditional shelf display. Items that would normally be hung individually on a product display are packaged by the manufacturer/distributor in huge blister packs especially for Costco so they can be sold straight out of the box. How many Costco employees do you see “stocking” shelves?
(3) Limited business hours. Wal-Marts have much longer open hours, with many operating 24x7. This requires additional employees and complicates staffing with multiple shifts, extra employees for peak hours, etc.
(4) Little or no technical assistance. Aside from outside product representatives selling their own products, you get almost zero assistance at Costco. Wal-Mart at least maintains a small staff of people who are supposed to be knowledgeable about TVs or DVD players.
(5) Avoiding sale of items that require “human involvement”. Costco doesn’t want to mix paint, cut fabric, or change your oil. At my local Costco, they’ll only sell you tires if you buy a set of four (it’s a much better use of labor to do all four tires once the car is in the service bay and on the lift). Even the buy-in-bulk philosophy contributes to fewer employees necessary because checkout is simpler with fewer items (e.g., a six-pack of chili instead of 6 cans of chili).
(6) Low store density. Costco won’t open a store unless customers will be lined up 10-deep at the cash registers.

Something amazing to me in these anti Wal-Mart screeds is how the nexus between unions, anti-sprawl environmentalists, and extreme lefties (e.g., socialists) has resulted in incoherent arguments. A prime example: it’s not in the best interests of a single mother of two making $15,000/year to save money on groceries at Wal-Mart because it’s better for her money to go into the pocket of a union member who’s better off than she is. The tortured logic behind this idea was expressed in a recent article in the P-I (http://seattlepi.nwsource.com/opinion/205768_focus02.html). For me, the statement that jumped from the page in this article was the following: “The situation won't change until a movement comes together and builds the kind of social and political power for workers and citizens that can balance that of Wal-Mart. This is not impossible: In Germany, unions are powerful enough to force Wal-Mart to play by their rules.” Yes, THAT Germany, where there is nothing short of economic catastrophe with 12 percent unemployment, virtually no economic growth, and where decades of labor-market politics has left an economy so uncompetitive that business investment has dropped to a trickle. This is the consequence of a government trying to manage competition. In Germany, it was laws that limited the hours that stores could be open (generally 8:00AM to 6:30PM, with shorter hours Saturday and no Sunday openings), and prohibited discounting, all in the name of “fair competition”. Similar laws in many European Union countries have driven up the price of nearly every item, negatively impacting purchasing power despite apparent generous wages (if you don’t believe me, compare prices on a CD or digital camera between Amazon.com and Amazon.de using current exchange rates). Wal-Mart at least provides the choice of living cheaply in this country, something most Europeans don’t have.

Posted by: Ex-WA on March 28, 2005 11:28 AM
37. Another difference between WalMart and Costco - Costco loses money on the stores. The profit they report is SLIGHTLY LESS than the revunue from membership. You also cannot buy individual items, unless it is by the bucket instead of jar.

Posted by: Fred on March 28, 2005 11:47 AM
38. Ignoring the various arguments here, I wish that Wal-Mart would look at putting a location on the Eastside. There's the Renton and Mill Creek ones, but those are both a little bit farther than I'd care to go most of the time, especially with a Target literally a block from here (they're usually more expensive though.) Even so, I'll buy from Wal-Mart on occasion anyway. I also have both Costco and Sam's memebrships, although I find that I end up shopping at Costco far more often than Sam's (again, mainly because the closest Sam's is in Renton, as opposed to Costcos in Kirkland and Issaquah.)

It seems to me a lot of people out there who dislike Wal-Mart are of the type that would prefer that we be standing in line for two hours at the Glorious People's Revolutionary Co-Op for bread,...

Posted by: Vexorg on March 28, 2005 11:53 AM
39. All good points. Costco and WalMart are different in their merchandising philosophies. What about Sam's Club? That seems a pretty close comparison to Costco. Does Sam's pay as well with the same benefits as Costco? No.

Costco loses money on the stores. Well, maybe. But so what? From the free market perspective championed here, y'all should be jumping up and down for joy. Does this bother the stock market? Costco's P/E is higher than WalMart's, so the market must think they are doing something right.

My point isn't to completely bash WalMart. As the world's largest retailer, they are clearly bringing value to millions of people. I was merely trying to point out that: 1) their business model is not without its social cost; and 2) there may be other business models that can provide consumer value with lower social costs.

Continue shopping.

Posted by: Steven on March 28, 2005 12:37 PM
40. YourGovernorCostsMillion$,

Your story of your time as an Army Company Commander brought back memories for me. Sounds like we were in at about the same time. As a platoon leader I had a soldier inquire about financial assitance, claiming that he couldn't afford to put food on the table. Turns out that in one month he had racked up the equivilant of four month's pay in rental car bills, far more than it would have cost him to actually buy an old used car, because he liked to impress his buddies by driving fancy new cars. Rather than dip into the Army's Emergency Relief fund, I had him call home and ask his parents for a loan, because clearly there was no emergency, only bad judgement.

I would venture to guess that Wal-Mart employees are no different from any other cross section of America. Some are smart with the money, others aren't. But to blame that on Wal-Mart simply doesn't make any sense.

Posted by: Jason on March 28, 2005 01:23 PM
41. Jason,

In fairness to Erik, apparently the eligibility for welfare is based "only" on income. [altough Erik, I'm sure there are other factors too, such as # of dependents, etc.] Wal-Mart salaries seem perfectly fine for one to avoid the need for welfare. We have not state income tax here (meaning, more take-home pay for the employee), and we have a fairly high sales tax (this would tend to encourage people to spend less - or only spend on essential items, if they're approaching the poverty line).

Oh, and Wal-Mart employees also get to pocket the money that would have been spent on Union dues.

PS- a soldier certainly deserves a raise over a union employee any day. Discourage sloth and mediocrity.

Posted by: YourGovernorCostsMillion$ on March 28, 2005 02:20 PM
42. Steven, You state about Wal-Mart "1) their business model is not without its social cost; and 2) there may be other business models that can provide consumer value with lower social costs." I don't think it's been established that there is a NET social cost to Wal-Mart's business model. That's like saying there is a social cost to efficiency (no doubt that Wal-Mart is efficient), and narrowly defining the social cost as the displacement of 500 workers, without taking into account lower prices and corresponding higher standard of living for 100,000 customers. My example of Germany above is what happens when you are more focused on the former than the latter. I'm not advocating complete laissez-faire here, but the concerns about Wal-Mart ending life as we know it are overblown, and selling products for less is generally an admirable goal rather than an evil one.

Posted by: Ex-WA on March 28, 2005 02:29 PM
43. Artie~

You are a tasteless asshole. Hopefully Stefan can pull your pitiful post from this site.

Posted by: Steven on March 28, 2005 03:59 PM
44. A little censorship is good for me too, as it happens...

Posted by: Timothy on March 28, 2005 04:44 PM
45. WalMart shoppers are simply doing what millions of citizens of rich countries have done for literally thousands of years: buying cheap goods from foreign countries and effectively debasing their own currency, leading to the downfall of the civilization given them by their forebearers. If Timothy wants to help bring about the ascendancy of China he's sure welcome to do that. I hope he's got some relatives who are willing to continue to fight--and die if necessary--overseas to protect both US markets and supplies of raw materials bound for the US market.

If, on the other hand, Timothy would like to see the USA prosper and remain strong he should carefully check every label and buy American-made products. If he wants, he can write the manufacturer's name down and go home to research whether it's a union-firm or not. If he's opposed to union-made products he can continue his search.

While I oppose closed-shop policies, I do not hesitate to purchase union-made articles simply because they are union-made. Freedom, though, wins every time: I prefer to buy Taiwanese over Chinese and American over Taiwanese.

A friend of the family was recently fired from WalMart because she had an on-the-job injury and could only perform light duty. Her supervisor sent her home several nights becuase there was nothing to do on light duty. Once her light duty was finished Ploni was summarily fired, WalMart holding that she had left early without permission on 48 days. Ploni's stance is she was sent home and, last I heard, her supervisor has made a deposition to the effect that he sent her home becuase there was no light duty work to perform.

Now, one can take the point that WalMart is Mom, apple pie, freedom and the American Way...there's just some big left-wing conspiracy to impugn the firm's collective integrity. One could also say there must be something to repeated allegations from a variety of people in a numerous places which all seem to point to the same thing: WalMart is a poorly managed firm which can't seem to avoid bad press despite claims of being oh so well managed.

But, hey, Timothy, you keep shopping there if you want. It's a free country.

Posted by: Kelly on March 28, 2005 05:21 PM
46. Wal*Mart may be the cheapest place to buy something, but unless you are living below the poverty line, you’re paying for it somewhere else.

Wal*Mart’s profits are not coming from generating margin on its sales; it’s coming at the expense of it vendors. Any business that is selling to Wal*Mart is for the most part making top line revenue only. In most cases they are losing money on the account. Wal*Mart is the most notorious business partner any company can do business with. They consistently use their systemic business practices to erode margin/profits with their vendors. While this is invisible to the consumer, it is not in the corporate community. Ask any company that does business with them.

While they fill a market need in those that require the bottom price just to survive, it is not a place where those that can afford to shop elsewhere value ethics integrity in their business practices. While I can support those that need to shop there for true economic reason, those that can truly afford to pay the dime more at Target/Kmart/Fred Meyer should. The only true market growth for Wal*Mart in the US at this point is converting its customer base to the middle and upper economic levels.

This is another wing-nut that won’t be caught dead there.

Posted by: Blaze Blue on March 28, 2005 05:33 PM
47. I'll apologize for offending anyone with my earlier post. It was meant as satire, though of course, biting satire. It is a terrible shame that Terry Schiavo's family must endure the political circus and the disgraceful fanatacism some members of the religious community chose to exhibit. According to the credible attending physicians, Terry has been completely unconscious for many years. Those who say otherwise are either deluded or political opportunists.

Again, the post was satire, meant for those who can't appreciate how satire, according to Webster, is meant to expose a vice or folly which religious fanatics should have brought to their attention, lest they do even more stupider things.

I never shop at Walmart. Their various impacts upon long-established businesses and local economies is deplorable. "Walmart, where cheap products ALWAYS cost cheaper"

Posted by: Artie on March 28, 2005 06:04 PM
48. Gee, you're right. I should want Americans to have to do crappy, monotonous manufacturing jobs that pay poorly, instead of the Chinese.

Actually, I'm a big fan of our trade imbalance with China, partially for for reasons discussed here. Additionally, I don't see what's so bad about the fact that the Chinese build things for us that we pay them very little for. Can you explain how that's a bad thing for us?

Posted by: Timothy on March 28, 2005 06:05 PM
49. First: Artie and Doc, you clearly have never shopped at a WalMart. The product selection is name brand, not "crap" or "cheap". Products by well-known vendors abound. Do the names Panasonic, Sony, Emerson, GE, IAMS, Paul Newman, Kraft, and Nabisco ring a bell (to name a few)? And for those of you who actually passed economics, do you think that perhaps the additional volume sold through WalMart might lower the marginal cost (and thus probably price) on similar products sold through other outlets?

Second, anyone who holds Costco up as a noble alternative also doesn't know what they are talking about. While Costco may pay some of its employees a bit more, they kick the stuffing out of their vendors to support their business model. That also results in lower wages all around, albeit one generation further down the line.

Get with the program, everyone. If you want to make a good living, don't plan on a CAREER as a cashier or shelf-stocker. As I have told some of my siblings more than once.

Posted by: HT on March 28, 2005 08:56 PM
50. I cross reference my union comment on why Walmart is able to be more competitive than Safeway. If the Unions have their way Safeway won't be around in 10 years. I think gas (which has no labor at all and the Unions haven't been able to fight it) has saved their bacon.

As per squeezing their suppliers- you can choose to not sell to Walmart, and many companies don't and won't. I like to see that they do in fact require a very high standard ie "don't send a load of goods stacked like garbage because it runs up my costs in terms of space and waste"

Also notably Walmart 'squeezes' the video game industry quite frequently on violence and nudity in games- WHY? Because their family valued customers said very clearly by voting with their dollars that they wouldn't tolerate it for most of the 90's. Only recently has that policy changed. I suspect it's because they have gotten into more blue states where parents have no say at all over their kids and the courts let their kids have any porn or drug they want to get their hands on.

Posted by: Andy on March 28, 2005 09:30 PM
51. I really can't stand this knee-jerk Wal-Mart bashing. As if lower prices is a bad thing. As if cashier jobs are something holy. What we need is a massive re-eduction of this country!

Posted by: Manco_Dollars on March 28, 2005 10:27 PM
52. Whether Erik and the lefties like it or not, Wal-Mart will continue to expand in WA. The sales tax revenue to the cities and state, not to mention the employment, is way more beneficial to these agencies than anything the union opponents have to offer.

Posted by: zip on March 29, 2005 01:06 AM
53. I used to be a "buy American" guy, but now I'm primarily a "buy non-Union" guy.

See, I've become so much more "tolerant" and "worldly" and "international" as I get older.

I wasn't born with a silver-spoon in my mouth, either, by the way. I turned many a wrench under a U.S. Army tank, without the help of a union to let me out of work early.

I'll proudly drive that tank right at IAW's or IAFF's (for that matter) headquarters. I can't stand American unions.

PS- ever noticed that Wal-Mart doesn't have butchers the way most Supermarkets do? Ever wonder why?

Posted by: YourGovernorCostsMillion$ on March 29, 2005 01:56 AM
54. Kelly,

Playing the "Made in China" card? Just another example of the obfuscation used by the anti Wal-Mart unions. In California, there are plenty of Wal-Marts, many of which have been built without significant community opposition. The flap has come with the Wal-Mart Supercenters, which are basically a Wal-Mart with added grocery store. Guess what the grocery store sells? Food, just like Safeway. Except cheaper. Often, much cheaper. And where does that food originate? Primarily the U.S., sometimes Mexico. Rarely China. So what's the problem? Most competing grocery stores are unionized, so now Wal-Mart becomes evil for selling home-grown food. This is inconsisten with the China argument used against Wal-Mart, regardless of the problems/benefits of trade imbalances. You could just as well criticize Best Buy for selling Chinese goods--I don't think those big ticket plasma TVs are made in the U.S. either.

Posted by: Ex-WA on March 29, 2005 06:52 AM
55. Personally I support the US economy by buying the best value. If the US produces the best value, good, if not then they don't get my business. That is called competition, the American way. The perfect example was the car industry when every bought American. Look what junk the big 3 produced. Japanese competition snapped them out of it and they now produce better cars.

Competition always improves services and products. It may take time, but it will win. The best part is the US with the US worker can beat almost any competition - hence the Mercedes, BMW, Toyota, etc. manufacturing going on in this country coming out with the same quality.

Posted by: Fred on March 29, 2005 09:26 AM
56. Sorry folks,

Erik was recently let out again. He doesn't make any sense probably mostly because of his medication.

Posted by: Eriks brother Jerik on March 29, 2005 12:23 PM
57. Yes competition always improves services products. But an open market only works if everyone competes with the same set of rules. Sorry to say Communist China does not play by the same set of rules.

Sure go ahead and buy at Walmart and support your friendly communist country. Greed has no loyalty.

Furthermore, I would not be caught dead at a company that encourages illegal immigration like Walmart. Walmart was caught redhanded recently pushing it's janitorial vendors to use illegal immigrants because you guessed it illegal immigrants will work for almost nothing. Unfortunately, it only got $11 million slap on the hand.

"Gee, you're right. I should want Americans to have to do crappy, monotonous manufacturing jobs that pay poorly, instead of the Chinese."

A monotonous manufacturing job is better than monotonous cashier job at Walmart because the manufacturing job pays twice as much.

Posted by: M&M on March 29, 2005 12:28 PM
58. M&M - If you mean by our rules, that may be true. Are our rules globally correct? What about all the people in China, India, etc. that are working hard (like the people in the US 200 years ago) to get ahead. They are being succesful and bringing up their standard of living and they are demanding more goods. The US grew to what it is without all the regulation. Why are you trying to hold back all these other countries by trying to force regulation on them which we didn't have when we were at their stage?

Posted by: Fred on March 29, 2005 12:36 PM
59. I do not endorse those self-check-out machines, where you pay the same amount for products but do the work yourself, because I won't endorse the unemployment of some cashier.

Based on that thinking, I have to kind of agree that Wallmart is ok. I'd rather not see small specialty downtown shops close because it's fun to see something different and unique, so I make a point to shop downtown ever so often.

The only reason I never go to Wallmart is the same reason I never go to Costco - I can't stand running around a zillion screaming, snotting kids piling out of shopping carts. And I won't shop at midnight to avoid this crowd.

It's capitalist America, and we're all free to make our personal choices just as I have outlined I've done. Deal with it or move to Europe or Canada.

Posted by: M on March 29, 2005 03:24 PM
60. Timothy,

I usually agree with you- but I have to say you are way off base on this one. As a Stanwood native, I can fathom just how destructive a Wal*Mart would be for the community.

Sure cheap products are great, in fact I shop at Wal*Mart in Spanaway, Puyallup, or at anyone of their many city and I-5 locations.

Small town living is what makes this country a great place. Trying to avoid the hustle and bustle of city life? Great, head to Stanwood or Camano Island for a weekend retreat. But don't put a Wally World there, or you risk ruining the small town atmosphere.

This is one of the reasons it pains me to be a Republican. Small community businesses being taken out by Wal*Mart is cause for celebration in Republican circles, when it should be the opposite.

I think I'm going to start a Wal*Mart boycott, I'm tired of seeing this happen to small towns; especially when that small town is my own!

Posted by: Patrick E. Bell on March 30, 2005 01:40 AM
61. Fred
I never wrote that I wanted to change how China plays the business game. I am just saying if China wants to compete in our market they need to play by our rules. If they don't want to play by our rules they don't get to play.
I don't think the US should play patsy for the whole world like it does now.
Furthermore, your comments mean that it is wrong for the WTO toforce our country to change our laws even though it has ruled against us many times and slapped penalties on our exports.

Patrick
It is good to hear another Republican standing up against Wal*Mart. Small businesses are the lifeblood of our economy.

Posted by: M&M on April 1, 2005 10:43 AM
62. I'm a humble servant of Costco. Allow me to clear some things up as far as the differences go:

-WalMart starts at minimum wage. Their medical coverage is minimal, and I haven't heard anything about their vacation plans.

-At Costco, as a PART TIME employee, you can expect:
A starting wage of $10hr, time and a half on Sunday. Full medical benifits after 6mo, including vision, life, health, dental, short and long term disability. Raises after every 800hrs worked. Paid holidays after a 90 day probation. A week of paid vacation time, plus floating holidays, after one year.

There is no arguement here, Costco takes better care of their employees, and that in turn is better for the economy as the money is spread around for more then just a top few CEO's to enjoy. This, in turn is better for the economy as the employees have more money to churn back into the economy.


And, also, Ex-WA...

(2) How many Costco employees do you see “stocking” shelves?
With the exception of produce, you will never see Costco being stocked during business hours. Every warehouse has a 'morning crew' of about 100 employees who stock the store at night.

(4) Little or no technical assistance. Aside from outside product representatives selling their own products, you get almost zero assistance at Costco.
I do apologize if you haven't located them at your local warehouse, but we have an entire section of staff who are there soley for that purpose. They're called the majors department.

(5) Avoiding sale of items that require “human involvement”.
There might be some truth in this. We don't do everything. We just do a lot, and damn cheap.

At my local Costco, they’ll only sell you tires if you buy a set of four
Again I apologize. This is not the policy of the company. We'll gladly change one or all tires at my warehouse. We also offer lifetime balence and rotating.

(6) Low store density. Costco won’t open a store unless customers will be lined up 10-deep at the cash registers.
That's not really true. People just do line up 10 deep, Costco is popular like that. :)

Posted by: Ginavive on April 28, 2005 09:35 PM
63. THE NEWEST STORY ON THE PULLMAN,WA/MOSCOW,ID STORY IS: AFTER BUILDING THE PULLMAN SUPER STORE, WHICH I AM TOTALLY OPPOSED TO, THE MOSCOW STORE WILL STAY FOR SOMETIME AND THEN WILL MOVE OVER NEAR THE SAFEWAY STORE IN MOSCOW! HOW'S THAT FOR WAL MART STRATEGY? I KNOW FOR A FACT THAT ONCE THAT STORE IS BUILT IN PULLMAN MANY, MANY DOWNTOWN STORES WILL HAVE TO CLOSE. NOT ONLY THE DOWNTOWN STORES BUT WHAT ABOUT SHOPKO, RITE AID AND SAFEWAY? WHY WEREN'T WE, AS CITIZENS OF THIS BURG, ASKED IF WE WANTED THIS STORE? HAS VOTING ON ISSUES BEEN DONE AWAY WITH? OH DON'T YOU WISH YOU COULD BE A COUNCILMAN FOR A DAY OR TWO?

Posted by: antiwally on May 1, 2005 12:50 AM
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