Better that Wal Mart change its business model

As I've discussed before, the difference between Wal Mart and the old department store as an "anchor" in a commercial district is that the department store never expected to capture 100% of the retail business. That's why it was called an anchor. The department store served as a destination, and customers shopped other businesses around the commercial "district" that grew up around the department stores.

Wal Mart doesn't want a customer to shop anywhere else. And its sourcing policies and business model has brutal effect in a wide variety of sectors of the global economy.

Furthermore, according to research reported in Stacy Mitchell's Big-Box Swindle, each Wal Mart that opens results in an overall reduction of 180 jobs.

So the fact that Wal Mart announced and is now implementing a strategy to "help" local businesses in urban communities seems designed more to limit opposition rather than to build successful commercial districts. See "5 West Side businesses to get marketing boost from Wal-Mart," from the Chicago Sun-Times.

From the article:

Wal-Mart pledged last year to help small businesses located near its first store inside Chicago's city limits as part of its new urban strategy. The pledge also was designed to counter criticism that the discount megastore destroys small independent businesses. Wal-Mart opened its 142,000-square-foot store at 4650 W. North Ave., in the Austin neighborhood, on Sept. 28.

The businesses are B&S Hardware, Active Auto Parts, Dandridge Hardware Center, Dream Bag and Curlie's Bakery. The companies will be featured in Wal-Mart's in-store advertising and in advertisements in local newspapers.

Local Wal-Mart store managers will choose seven small businesses every three months for the "Small Business Spotlights," to receive the advertising support.

Wal-Mart's announcement Thursday was the first step in its pledge to give $50,000 to chambers of commerce on Chicago's West Side and to buy $100,000 worth of advertising space for nearby businesses.

Also see "Evolution of the Shopping Center by Steve Schoenherr, Professor of History, University of San Diego.

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