Business/Investing Stephen Halebsky - Small Towns and Big Business: Challenging Wal-Mart Superstores (0739122401)

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Stephen Halebsky - Small Towns and Big Business: Challenging Wal-Mart Superstores

& 8220;In 1999 the residents of Eureka, California, heard some news that many

found unwelcome: Wal-Mart Stores, Inc. planned to build a 130,000-squarefoot

superstore in their city. Located on the Pacific coast and within easy distance

of Redwood National Park, the city wanted to project an image of itself

as a tourist destination. AWal-Mart superstore, identical to thousands all over

the country, certainly would not contribute to that image. There were other

reasons to reject Wal-Mart’s plans. The land that Wal-Mart wanted was near

the old industrial section of the waterfront that had once been a left of economic

activity and which the city hoped to revitalize as a source of well-paying

industrial jobs. To put a mere discount department store—and one that

was known for low-wage jobs—on such a crucial piece of land seemed shortsighted

from the standpoint of economic development. Eureka had a struggling

but viable downtown that would be hurt by the proposed new store, and

independent merchants all over the city feared that Wal-Mart would harm

them, perhaps fatally. Another objection, more abstract but of equal importance

to many residents, was that a superstore threatened to replace the diversity

and vitality of real community life with corporate homogeneity. While

Wal-Mart’s vaunted low prices were attractive to some, others felt that bargains

on milk and underwear could not make up for numerous disadvantages.

Furthermore, the city already had its share of discount department stores, including

Kmart and a huge new Costco that had failed to generate the impressive

tax revenue its promoters had promised. And there were already Wal-

Marts in the counties north, south, and east of the city. Convinced that the last

thing Eureka needed was a Wal-Mart superstore, a group of local citizens organized

to oppose the project.& 8221;

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