February 23, 2003
Dividing the dollars
By Kathy Helms-Hughes
STAR Staff
khelms@starhq.com
Antitrust attorney Carl E. Pierson has created
a "Wal-Mart and Globalization Website" which attempts to pull
together the various arguments made in support of and in opposition
to Wal-Mart expanding into a community.
According to Pierson, purchasing from big box superstores
can be detrimental to small towns, depriving communities of
activities often paid for or supported by local small businesses,
but not superstores: Activities such as Little League, parades,
4-H Club activities, Scouting, adult sports leagues, and more.
Pierson contends that the "dimes, quarters and
dollars you save at a superstore put the small competing stores
(your neighbors, relatives and friends) out of business and
deprive your community of what made it a community, leaving
you and your friends, relatives and community with a windowless
big box surrounded by a vast parking lot, which at any time
could be vacated when the superstore determines that it wants
all of its customers within a 35-mile radius to shop at an even
larger superstore."
Pierson says consumers should look at the pros
and cons of dealing with a superstore and decide for themselves
what to do. He recommends consumers make their purchases in
a responsible way "not only from the standpoint of saving a
few dollars when traveling to a superstore ... but in looking
at the cost to yourself, your friends and relatives, and your
community by reason of your purchasing choices."
Between a rock & a hard place
Johnny Mills, owner of Mills Greenhouse in Elizabethton,
questions why Elizabethton is so quick to embrace a Wal-Mart
Supercenter, but says he believes one reason is because this
area "has had nothing but bad news for about three years,"
with jobs and industry leaving the community.
"We're like a child and we've gone a lot of Christmases
without presents. And all of the sudden, here's a bright shiny
thing: People coming in saying, 'We're going to spend a lot
of money. We're going to build you this brand new place and
we're going to light it up.'
"As a community, we're embracing that. Even though
this bright shiny thing looks appealing, it's got a lot of
thorns in it. But we're willing to overlook that because we've
had so little good news in so long."
Mills said he does not have a problem with North
American Corp. owner Charles Green selling his property to
whoever he wants. "My problem is not with Charles Green."
In a small town, he said, "We're supposed to
be able to talk about things and have different viewpoints
without making enemies with each other. So when this is over
with, the people who are my friends that are for it, they're
still going to be my friends. I'm not making this personal,
but I can't see where this is a good thing for our community.
"A super Wal-Mart duplicates every job service
that we have in this community. It brings not one new product,
not one new job, not one new anything to our community. In
my mind, all it does is dilute the number of dollars that
we have to go to the present merchants."
As opposed to another Wal-Mart, Mills said, "If
anybody came in here with a factory or jobs that are not presently
in the community, then I think we ought to get a band and
go down to the west end of town and lead them into town."
While Wal-Mart wants to be all things to all
people, Mills said he prefers the small-town concept of being
able to visit with his friends and neighbors as he conducts
his business. "That's what a small town is all about. ...
Go to Ed Peters and he'll find you a bolt or a screw in about
five minutes and you can talk to him and see what's going
on. You don't have to park half a mile away.
"Super Wal-Mart is not that way. It's just not
the fabric of a small town. I think we are hurting the fabric
of a small town by having these folks in," he said. Ross Perot
once referred to a "giant sucking sound" when businesses left
the country after the North American Free Trade Agreement
was signed. Mills says, "I think he was talking about a super
Wal-Mart in a small town. That's the giant sucking sound.
"If you just want to make a decision based on
dollars and cents, you can write the numbers down, you can
make them sound any way you want to, and you can probably
make the case for Wal-Mart. But take it beyond that.
"The girls selling the Girl Scout cookies, the
battered women's shelter, every non-profit in this town has
friends in this community that they can go to and say, 'Look,
I need some help. Do you have any extra money for us?'
"Now, if we succeed in putting out a lot of these
folks, or some of these folks, then are we all going to have
to go to the Supercenter down here and say, 'Look, we've got
this project and we could use your help.' I guarantee you
that the Supercenter is not going to be able to do what these
businesses do," he said.
"I'm sincere in my belief about this," he said,
"but I'm willing to consider the other side if someone can
convince me I'm wrong."
Undermining tax base
Dixie Battery has been serving the community
since 1927. Owner Sonny Mottern said he is against a super
Wal-Mart coming in.
"Wherever they've gone, they've killed a lot
of Mom & Pop operations that have built the tax base.
Now, they're going to come in and say they will help with
jobs -- but how many jobs are we going to lose when they shut
down everything else? Where are these people going to go get
jobs? They're not a very high-paying outfit," Mottern said.
He expects to lose some customers at first to
the larger Wal-Mart, because that usually happens when a new
store comes in. But his ace in the hole is service.
"They'll go there and once they find they can't
get the service, they come back. We've been here since 1927.
It's kind of hard to last that long in a little town without
personal service."
Mottern said he personally signed one of the
petitions to keep out the new Wal-Mart. "I'm just against
them moving in, period. They need to get plants in here, something
that puts money into the economy instead of something that
takes it away and takes it to Arkansas. They can fight it
by saying the wages are going here in Carter County, but the
profits are not."
Once competition has fallen by the wayside, don't
look for Wal-Mart's "low, low prices" to remain, according
to Mottern. "After you get a monopoly, you can do whatever
you want to."
Bottom line on prices
Sam Snead, owner of Sam Snead Tires in Elizabethton,
Bristol and Abingdon, is a survivor. He's survived the arrival
of a Sam's Club in Bristol, a Wal-Mart at Exit 7 in Bristol
-- less than a mile from his store -- and now is faced with
the arrival of a Supercenter across the street from his business
in Elizabethton.
"I wish to the devil that it wouldn't happen.
It probably will affect my business some, but it's not only
my business it affects, it affects a lot of people. It'll
put some people plumb out of business," he said. "I know for
an absolute fact that it will make a difference."
Snead said it has been his experience that a
lot of people, including his customers, have to visit the
Supercenter at least once. "Then they find out that in reality,
my product -- which is tires -- Wal-Mart's are not really
any cheaper than mine. I sold a set Saturday to a couple from
Chilhowie or somewhere. They went to Wal-Mart up here in Virginia
and then they came on down here. Whenever I priced them the
tire, I just asked them: 'Am I competitive with them?' And
she said yes. And of course they bought them. Had my prices
not been competitive they wouldn't have bought them," he said.
Snead is concerned the city will give away the
farm by making concessions on property taxes and low-interest
loans in order to lure the Supercenter "because they think
they're going to hire people and they're going to do this,
that and the other. But all they're going to do is take business
from local people that's been here, and they're going to lay
off people, and what does that gain? It looks to me like tit-for-tat.
They're just putting it all in one basket."
The eyecare vision
Dr. David Mills, an Elizabethton optometrist,
also is opposed to a Wal-Mart Supercenter coming to town.
"I think if they sell a dollar's worth of services that are
involving my product, then it's affected my business and all
of the other optometrists. It will affect all of the eyecare
practitioners in the town."
Customers tend to migrate to Wal-Mart's "perceived
image of always the cheapest price," he said. "It's a far
cry from necessarily so," according to Mills, but Wal-Mart's
aggressive advertising campaigns have led consumers to accept
it as gospel. "That's what people have in their head."
Personally, Mills said he doesn't care for a
Supercenter "because I don't want to do my grocery shopping
there and I don't want to have to walk 5 miles to go get something
I can go get in my current existing store in five minutes."
Not only would a Superstore be inconvenient,
he said, but Elizabethton will lose sales tax revenue from
Johnson City customers who come into town to shop because
they don't particularly like to go into the big stores.
"If you looked at a positive note, it may bring
some more restaurants -- and I'm talking about restaurants,
not fast-food places, that we don't have now. I just don't
know how needed it is, and it certainly won't help my business
any," he said.
Worth the sacrifice?
One Elizabethton merchant, who preferred anonymity,
says Elizabethton stands to lose its precious small town atmosphere
if a Supercenter drives smaller businesses out.
"I can't think that we need another drug store.
We have more drug stores than about any town in the United
States for its size. Instead of somewhere else for people
to spend money, we so desperately need industry. The people
who have been here, who pay taxes here, who have tried to
make a living here -- I think we owe them a little something
for loyalty."
Rather than more of the same, she said, Elizabethton
needs "a department store, we need a shoe store, we need restaurants,
we need liquor by the drink to get some decent restaurants.
Every time I go to Johnson City to eat, all of these people
from Elizabethton are over there. I'm a Christian, but it's
not like if it's not here they're not going to drink it."
When the North American and Bemberg plants closed,
she said, "I thought it would be the end of Elizabethton.
But we've survived, and I'm thankful. But it's hard to make
a living in Elizabethton. We have banded together as a community,
I think, and are trying to withstand the storm. The people
that are here, we support the community. We're the ones that
keep it going."