Cover Story

Wal-Mart Supercenter: A Mixed Blessing?

By WIlliam Blomberg
Manifest Staff Writer

Maybe you’ve visited a Wal-Mart Supercenter sometime.

Chances are you have, since there are more than 2,000 of them in the United States, and very soon Marinette will be one of those locations.

The promised arrival of a Walmart Supercenter draw mixed reactions. While the megastore may offer job opportunities and bring new shoppers to the area, it make also generate environmental and economic concerns.

The Wal-Mart superstore features a regular retail store, with a complete grocery section. Many supercenter pharmacy, video rentals, fast food outlets, and a Tire & Lube Express services.

Marinette’s planned Supercenter would have all of these features. To accommodate this upgrade in service, Wal-Mart plans to move its current store out of Pine Tree Mall and construct a new building on 32 acres of land behind Peshtigo National Bank on Roosevelt Road/County Trunk T.

Current plans call for construction to begin this summer, with an opening date set for sometime in spring 2008.

So what effect will having a “one-stop shop” with so much to offer have on existing local stores such as ShopKo, Kmart, and Angeli’s?

Probably a familiar one, says history professor Dan Kallgren. He compares the arrival of Wal-Mart with stores moving to the area in the past.

“This is a picture of what’s been going on in the U.S. nationally,” Kallgren says. “Wal-Mart is just the latest example of the chain store process, which has been going on since the 1920’s.”

Kallgren cites similar examples from Marinette’s past such F.W. Woolworth’s, a “five-and-dime” chain store that moved into the downtown area in the middle of the 20th century and experienced success.

Like many chain stores, Wal-Mart offers consumers advantages over local retailers because of the size. All stores have a similar layout, and most customers know where to look for the items they need, regardless of the location they visit. There are a wide variety of products available, at low prices.

Due to Wal-Mart’s expanded offerings, the super store will likely become a one-stop shop for people seeking to save money.
Kallgren felt that to stay in business, grocers such as Curry’s IGA and Angeli’s would need to offer an incentive to customers.
“If they make it, it’ll be because they’re offering something Wal-Mart can’t, whether through convenience or familiarity,” says Kallgren.

Economics professor Julie Urban, who chooses not to shop at Wal-Mart, points out that some of the retail giant’s success has been made possible by establishing a monopsony.

This market form, in which one buyer is working with many sellers, is similar to a monopoly, in which one seller is working with many buyers. A monopsony allows Wal-Mart to dictate terms to suppliers.

“They are such a big buyer that they can dictate the price,” Urban said. “Sellers tend to sell cheaper to Wal-Mart because there is a fear of losing Wal-Mart’s business.”

Urban expressed concern for several local businesses because of Wal-Mart’s ability to undercut competitors’ prices.
Kallgren said that Wal-Mart has a good sense of which locations will generate the best business.

“Wal-Mart seems to know that these are markets that they do well in,” he said. “They seem to feel that a low-wage economy is favorable to a low-price policy.”

Marinette falls into this category as a target market; 2000 U.S. census data shows that the average household income was $31,743, below the national average of $41,994.

Dollars aren’t the only aspect to be considered, however. University Relations Director Maureen Frawley had strong objections to the construction of a Marinette Supercenter, because of environmental reasons.

“As a citizen, I’m concerned with preserving the land and the beauty of the surrounding area,” said Frawley. “Why does Wal-Mart need another store? It makes no sense environmentally to me.”

Similar questions were raised when Wal-Mart first came to Marinette. Only time will tell if a Wal-Mart Supercenter will be a success for the Marinette community.

In the April Issue: The effects of Wal-Mart and nearby stores on the downtown area, and specifics on the land to be cleared for construction.


Students Reaction to Wal-Mart Supercenter in 2008

By Sarah Blunck
Manifest Staff Writer

Although UW-Marinette students have strong opinions about the planned Wal-Mart Supercenter, they say they will shop there when the store is built.

Three out of four students interviewed stated strong opposition to the new store, but all three also said they will go to Wal-Mart for grocery, optical, pharmaceutical, automotive, health and beauty, household, and entertainment needs.

Vanessa Smith, a full-time student at UW-Marinette cited “McDonaldization” as a reason for her opposition to the new store.
“Maybe we are not supposed to have everything all in one place,” says Smith. “America should be more individualistic.”

Smith also cited environmental concerns about the large building and parking lot. She is concerned that run off from the parking lot will pollute the surrounding area. Still, Smith says she will shop at the new store.

Marissa Goltz from Crivitz learned about Wal-Mart’s effect on communities by viewing the documentary, “Wal-Mart the High Cost of Low Price.”

Goltz said that even though the new Wal-Mart would bring in jobs eventually smaller local businesses will close leaving those people without jobs. She is concerned about local unemployment.

“At first Wal-Mart will be accepted for its low prices and convenience,” Goltz predicted. “But once it takes hold of the community and the economy the people will want to get rid of it.”

Goltz had strong opinions on merchandise quality, saying, “Businesses that specialize in one thing have higher quality products, while Wal-Mart has everything at very low quality.”

(Editor’s note: Wal-Mart carries a variety of goods, many under well-known brand names that are also offered at other retail venues.)

However, when asked how the new Wal-Mart will change her life Goltz said, “I will be able to do all my shopping in one place now.”

Students at UW-Marinette were quite inconclusive about the planned Supercenter. They often expressed oppositions to Wal-Mart’s philosophy.

But those surveyed all agreed that these issues will not keep them from running to Wal-Mart for their shopping needs.

McDonaldization: This term, coined by sociologist Geroge Ritzer, is often used to refer to the way in which fast-food restuarant management principles are applied to other sectors of the world economy.