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Sprawl-Busting: Wal-Mart Scales Back

By
Real Estate Agent with Chuck Willman 9334967-SA00

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Forbes Magazine has called Al Norman Wal-Mart's number one enemy.

What does he do?

He's the founder of Sprawl-Busters.

He mobilizes grass roots groups to fight urban sprawl. Have a new big-box store moving in? Call Al. 

I live in a pleasant neighborhood. A local Wal-Mart was planned. Opposition arose. The plans were put on hold. Three years later I have three Wal-Marts within five miles. We could have used Al. I don't oppose Wal-Mart per se. I do, however think it's unwise for any one business to create its own competition. In a word- cannibalism... but, in this case, of an economic nature.

It appears however that the Wal-Mart is re-thinking the strategy. 

There's an excellent article in the Huffington Post that offers the reasons. I highly recommend you read it.

About this topic, urban sprawl, I'd like to comment with regard the the Wal-Mart news.

 

Wal-Mart has scaled back.

In the past year they’ve scuttled plans for 45 projects.

Beyond this, 19 stores have been shot down by citizen’s groups. What’s behind this?

It’s difficult to say.

With regard to citizen groups it’s made plain. Locals object for a variety of reasons:

  • They don’t want one retailer to drive local stores out of business.
  • They want a variety of retailers.
  • They’re concerned about side factors: rise in traffic, potential rise in crime, lack of competitive options.

With regard to Wal-Mart, it’s more of a mystery. Store cancellations are usually announced with little warning or fanfare, the explanation hidden in a vague press release.

The reality is this: Wal-Mart’s aggressive expansion has met one reality- their sales are hurting… especially in areas where they are their biggest competitor. Wal-Mart is cannibalizing their own sales.

You won’t catch me shedding any tears over this.

You don’t have to be an economics major to conclude that it makes little sense to build stores so close to each other.

I just wish the company had discovered this before homogenizing my community.

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Chuck Willman is the founder of USA Vest- a group of investment minded individuals who share an interest in commercial and residential real estate.

The opinions stated here are his own.

 

 

Comments(4)

Jeremy Blanton
Myrtle Beach Homes Blog - Myrtle Beach, SC
Myrtle Beach REALTORĀ®- myrtlebeachhomesblog.com
Chuck, they have 5 stores here in Myrtle Beach, and have plans to build another here shortly!
Apr 05, 2008 05:53 AM
Dick Betts
TOUCHSTONE REAL ESTATE - The Villages, FL
REALTORĀ® The Villages, Florida
Living and based in Bentonville, AR I found your article very interesting.  Nobody in my family has any strings attached to Wal-Mart.  But all my neighbors are in management and boy do they bleed Wal-Mart blue. 
Apr 05, 2008 05:59 AM
Doreen McPherson
Homesmart ~ Scottsdale ~ Tempe - Tempe, AZ
Phoenix Arizona Real Estate ~
Has to make you wonder what the decision makers know about the real world.  I wonder if the idea was to put the competition out of business and then close the extra stores.  hmmm.  No wonder people fight them. 
Apr 05, 2008 01:27 PM
Chuck Willman
Chuck Willman - Alpine, UT
NewHouseUtah.com

Jeremy- How are the other stores doing? I'm speaking of those who compete against Wal-Mart.

Dick- They have much to be proud of. They're a very well run organization for the most part. I'm guessing they're discovering their optimal numbers. There's not doubt they'll figures this thing out. 

Doreen- I'm of the same mindset as you. It appears to be at least part of the plan. 

Apr 06, 2008 07:26 AM