Friday, August 18, 2006

Wal-Mart expansion means more money for current Wal-Mart employees

At work today I met with a Wal-Mart employee who will be working at the new Niles Wal-Mart.

After some small talk, she explained that she's currently working at the Forest Park, Illinois Wal-Mart, but is taking this job in Niles because she's been promoted to a supervisory position--with a higher hourly wage.

Those "big box" opponents are clueless on a lot of things. Here's one more. Wal-Mart, Target, Lowe's etc. building new stores means higher wages for existing employees.

And if new stores aren't built? Well, you know the rest...

Oh, before someone chimes in that the "big boxes" drive out existing business, the current Chicago expansion plan is to build stores in low-income areas, so there is little existing retail presence to be driven out.

And if some businesses close? This will sound cruel, but one of the rules of capitalism is that businesses are supposed to fail. The A & P grocery chain and the Montgomery Ward department stores are just two of the many retail giants that have folded their tents. At one time, these blue chippers were as ubiquitous as Wal-Mart.

In fact, remember the driving-through-the-shopping-mall scene early on in the Blues Brothers film? Most of those retailers (a few won't be familiar to non-Chicagoans) that Jake and Elwood trashed with the Bluesmobile don't exist anymore.

The Blues Brothers was released in 1980.

Related post: Wal-Mart scorecard: Niles 2, Chicago 1

Update Sat. Aug 19: A commenter on the Illinoize blog pointed out that A&P does still exist. They are no longer a national powerhouse, but they have a cluster of 107 stores in the New York City area. The full name of A&P is Atlantic & Pacific, but the chain obviously is no longer coast to coast. What was once a giant is now roasted rump.

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