Big Boxes, Bigger Boxes, and Independent Businesses

Retailing

By Jonathan Weber , 6-29-09

Last week I posted a piece about the closing of the downtown Missoula Starbucks, and expressed some ambivalance about the idea that locally owned versus chains was always a black-and-white issue. Today I came across a piece that takes a different kind of look at this issue, arguing that Walmart and Costco are killing the so-called category killer big boxes in product categories such as music, books, electronics, toys and more. (Hat tip to Roger Millar for the link). The story, by Stacy Mitchell, is on the Website of the Institute for Local Self-Reliance, not a group I was previously familiar with, and it definitely has a point of view. But it makes some great points, and calls for more vigorous anti-trust enforcement on predatory pricing by the mega-retailers.

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By Jonathan Weber , 6-29-09 | comments (6) | email story | print story

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By Mickey Garcia, 6-29-09

Being a low income person, I like big box stores. My small amount of money goes farther at Walmart, Costco, Fred Meyer and Dollar stores than Local "Boutique" stores. Another benefit for me as a little bit round person is that I feel skinny when I shop at Walmart. I think the people who dislike Walmart are snobs. Walmart employs local people and like all big box store gives many more product choices than smaller stores. You can only beat their range of choices and prices on the internet but you've got to be careful.

By Mickey Garcia, 6-29-09

I haven't seen a narrowing of product choice as claimed in the article especially when considering offerings among competing big box stores and the internet. None of the Big box stores are too big to fail because there are competing big box stores that will eagerly take their place almost immediately. The government needs to concentrate its antitrust efforts on the financial industry not the retail industry. ddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddddd

By Jeff, 6-29-09

Mickey,

I'm not as familiar with Missoula's shopping, but I find my dollars go further with indies in Bozeman. Locally-owned Town and Country beats the chains for grocery prices. Owenhouse Hardware and Kenyon Noble compete quite well against Lowes and Home Depot (the latter has a price match guarantee) and our locally-owned thrift stores typically offer better value than the shoddy housewares or clothing at the box chains.

Cheapness does not necessarily equal value or saving money. When I look at all the options and long-term costs, I usually conclude going local is the best option.

As for employment, the fact that the big box chains employ locals is both obvious and a distraction from the real question; do they increase or decrease NET employment. It's demonstrably the latter, for reasons I've written up here http://amiba.net/pdf/benefits_doing_biz_locally.pdf (PDF doc) based on numerous studies which are nicely summarized and compiled by the New Rules Project here: http://www.newrules.org/retail/key-studies-walmart-and-bigbox-retail

By Mickey Garcia, 6-29-09

Only doing business with the home boys sounds like a good Idea but if you live in a small town and you're on a budget it aint possible. In the first place Small local stores can't afford to stock a wide variety of goods that you find in a big box store. In the second place when you're talking retail, the bricks and mortar store whether big box or local is only a conduit for merchandise mostly manufactured in distant places. Of course if you're an internet shopper you have an even greater cost, quality selection. Back to basics, I spend about 90% of my food dollar shopping sales at local supermarkets, one a national chain and one a very local chain. I shop the big box stores in the Twin Falls area every other month and they are quite a bit cheaper than local stores. Outdoor stuff. I shop online sales at Cabela, Campmor, Beans and Lands end. Clothing. King Size Direct online sales. Can't beat the quality price and diversity online although most of the stuff seems to be made in China. Back in the 70's when I lived in Missoula I believe I shopped Safeway and Kmart. Back then I spent a lot of time skiing in the Bozeman-West Yellowstone area not shopping. The entire smart growth-locavore- shop locally movement is definitely in Vogue right now especially with the ex-urbanites who have moved in lately. It makes for warm fuzzy feelings and good local politics but its not reality based. As a general rule we're not being poisoned if we eat non organic non local food and most of the time local isn't cheaper. You can't turn back the clock.

By Kitty, 6-30-09

Nothing beats the thrift stores for clothing prices.

...

By Mickey Garcia, 6-30-09

True, if you can find the right size and style.

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