Monday, November 21, 2005

Who doesn't like Wal-Mart's "everyday low prices"?

Politicians and Wal-Mart's competitors, that's who. You can't tell me that the following real people don't appreciate Wal-Mart:
Retailers Like Wal-Mart Adjust to Katrina
Wal-Mart, Best Buy and Other Retailers Adjust to Katrina With Inventive Store Formats


WAVELAND, Miss. - No other Wal-Mart in the country looks like the one that reopened here more than two months after Hurricane Katrina nearly wiped the town off the map.

Pallets of space heaters, box fans, mops and buckets are stacked on the floor. Plywood walls hide workers still repairing what used to be the food department.

Wal-Mart is one of a handful of retailers along the Gulf Coast that have tailored their reopened stores to meet the basic needs of their hurricane-weary customers, stocking shelves with large quantities of hardware, appliances, no-frills clothes, dry food and other post-disaster products.

"It's a real uplifting thing," Jim Freeman, 60, said as he and his wife, Nina, filled a shopping cart with food. "You take a lot of things for granted until it's all gone."

Best Buy on Friday opened a first-of-its-kind store in Gulfport, converting a former grocery store into a warehouse-style store with roughly twice as much floor space for appliances as a normal store. The rest of the space is still for computers, televisions and other electronics, but compact discs and DVDs won't be sold there right away.

A Home Depot in eastern New Orleans partially reopened Thursday, 81 days after the hurricane filled it with six feet of water. The store sells only building materials and appliances and uses only half of the original store's space.

Almost all of Waveland's stores are vacant and littered with debris, but the Wal-Mart's parking lot was nearly full Saturday when the store opened for the first time since the hurricane flooded it with 14 feet of water.

Waveland's "Wal-Mart Express" is roughly one-third of the size of the original 205,800-square-foot "Supercenter."

Store manager Ray Cox said his inventory will change as residents go from cleaning up their homes to rebuilding them.

"It's quick, it's easy and we can change on the fly," he said.

Other retailers are sticking to their standard format: When Target reopens a hurricane-damaged store in Beaumont, Texas, it will look like any other store in the chain, said company spokeswoman Lena Michaud.

"What our guests have told us is that they like being able to come into a place that is back to normal and reminds them of life before the hurricane," she said.

Richard Hastings, a retail analyst for Bernard Sands in New York, said Wal-Mart and other retailers have nothing to lose by opening these experimental stores in hurricane-affected areas.

"They're helping the community, no question about it, and they're going to recapture the market down there," he said.

Wal-Mart doesn't have much competition in Waveland yet. Other stores along Highway 90 are in shambles. A fast-food restaurant and several convenience stores are the only other businesses that have reopened, residents said.

While the store's interior was being gutted and repaired, Wal-Mart sold some basic items out of a tent in the parking lot. The nearest grocery store was about a half-hour drive.

"It's definitely a sign of recovery when Wal-Mart comes back," said shopper Sharon Adams....
Wal-Mart has surely not rushed to provide its (in)famously low-priced goods out of altruism, but because there's profit to be earned. Just don't tell any of this to Senator Byron Dorgan, because he might next propose levying "windfall taxes" on Wal-Mart -- just as he has on oil companies.

Yet the fact that Wal-Mart is profiting from people's rebuilding should never be construed as a bad thing. They have goods that people want, that people are willing to pay for, and only Wal-Mart had the ability to provide them. With the level of destruction, and considering the capabilities of small stores, only a giant like Wal-Mart could clean up its retail space and get back in business so soon.

Target has a nice idea of pretending everything is normal, but my personal hunch is that Wal-Mart, Best Buy and Home Depot have the better idea in devoting their limited space to what people need in the here and now. It's a matter of how quickly, and again, Wal-Mart can do it with greater ease than any small store. Having worked at my aunt's wine store during more than one holiday season, I find it astounding how quickly a Wal-Mart can transform itself.

I wonder how many Waveland residents had previously complained about Wal-Mart's practices but are now shopping there. What are the odds they'll finally appreciate a big business model that, yes, tends to drive small "mom & pop" stores out of business, but has the ability to supply their consumer needs after a natural disaster?

Do those who think Wal-Mart is evil ever dream of an alternate universe where it doesn't exist? There, people in Waveland would still have to drive 30 minutes just to buy groceries, and likely pay higher prices to boot.

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2 Comments:

Anonymous Sphynx said...

Perry:

This is good news. One advantage that "Nation Wide" retailers bring to the table (besides mass buying, et cetera) is that any single (or double in the case of Katrina & Rita combined) natural disaster is that their "un-natural" profits from the rest of the country allow them to quickly begin their own clean up & re-building, with out needing to wait for insurance claims payment like a small business owner might.

On a related note, did you hear who was the first to show up in Mississippi & Alabama with relief supplies (ice, bottled water)? Walmart - they had trucks loaded and pre-positioned, which began rolling out of central states as the Katrina came ashore. With-in 36 - 48 hours they had trucks at the edge of the damage zones in both states. The interesting part is where, in (I think) Ole' Miss, FEMA nitwits blocked the trucks from driving into the disaster areas.

Walmart's intent in providing free supplies of needed water and ice wasn't purely altruistic, since "good will" is an accepted business intangible good.

Monday, November 21, 2005 4:56:00 PM  
Blogger TKC said...

I’ll take a wild stab at the anti-Wal-Mart response.

This is just a vicious capitalist attempt to make money off of the downtrodden. The same downtrodden that have had their mom and pop store lively hoods crushed by this Wal-Mart menace. Some people have lost everything. They have no cars to go to Wal-Mart to buy their crap. They have no houses to even rebuild. Yet here is Wal-Mart, a multi-trillion dollar corporate bully coming in to take the last crumbs of the poor that they have oppressed already with their attacks on living wages. So yes, there should be a tax off of this unneeded profit mongering. It should be 100%. The money should be used by local government agencies to help the poor rebuild instead lining the pockets of corporate thieves. It what is best for the poor. It is for the children.

You get the picture.

Monday, November 21, 2005 5:12:00 PM  

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