Sam's Club on BI (Honolulu, Hilo: middle-class, appliances, to buy)

[mdand3boys]

One cannot compare Costco vs Walmart. They are different businesses, in different segments, with different markets. Bringing it up as some sort of "factual comparison" is just an attempt at clouding the issue.

I believe Walmart does the world a great favor - they seem to hire a lot of people that wouldn't have ANY job otherwise. So whtviper's comment is spot on - $10 an hour is better than $0 an hour...

Also, if Walmart "forced out of business" smaller shops, why is it that around every new Walmart that opens up, dozens of small stores suddenly open all around it? This is a fact that has been well documented in many areas.
In Hilo and Kona, there isn't a single available commercial rental space anywhere near either Walmart!

[hawaiian by heart]

^^^^^^^^^^

What kind of shops mdand3boys? Are they subways? burgerking and qiznos type small business? If so? Thats not the type of local small business we are talking about. Im not saying im not wrong or anything. What i struggle the most about you and whtviper1 is your logic. Gentrification sometimes isn't ok, I mean i get it, if a business model works use it. But man i got to tell you here in portland seeing a starbucks or a subway every two blocks downtown is boring when your looking for diverse food choices and flavor in your life.

And i bet surrounding Walmart in Oahu you find almost the same type of businesses at every location.

[OpenD]

It's been very well documented that Walmart has an adverse effect on local businesses, drives down local wages, and costs taxpayers millions of dollars in displaced costs ...

For example, Walmart pays less than prevailing wages in every market it operates in...


Therefore, even if a new Walmart creates more jobs for a community, it nonetheless entrenches poverty among its workers.

• Walmart drives down wages for workers at competing local businesses. In 2005, an economist
  from the National Bureau of Economic Research found that the average Walmart store
  reduces earnings per person by 5 percent in the county in which it operates [David
  Neumark, “The Effects of Wal-Mart on Local Labor Markets,” 2005]. Lower wages across the
  board mean that people have less money to spend in the community, which of course has a
  negative effect on local economies.
  
• A 2001 study concluded that, within a few years of Walmart entering various communities in
  Maine, retailers’ sales of apparel dropped by 28 percent on average, hardware sales fell by 20
  percent, and sales of specialty stores plummeted by 17 percent [Kenneth Stone at Iowa State
  University, “Impact of the Wal-Mart Phenomenon on Rural Communities,” 1997]. This is
  largely why many businesses shut down entirely once Walmart comes to town.
  
• Walmart’s rapid expansion of Supercenters and Sam’s Clubs and its simultaneous
  abandonment of older discount stores have resulted in hundreds of vacant stores across the
  country

http://www.local881ufcw.org/pdfs/Wal...m%E2%80%A6.pdf

[OpenD]

Here's another, one of many that can be found...

It's more bad news for Walmart. After a New York Times story alleged that Walmart bribed officials in Mexico to allow the company to open stores in that country, another new report reveals exactly how much it costs a community in dollars and cents when Walmart comes to town.

The research, done by a Northwest community group, estimates that one Walmart store, which is set to open in a Washington neighborhood, will decrease the community's economic output over 20 years by an estimated $13 million. It also estimates the Walmart will cost the community an additional $14 million in lost wages over the next 20 years.

"We know now the true economic impact a Walmart store has on a neighborhood when it moves in," Christopher Fowler, who conducted the research for Puget Sound Sage, said. "The research shows that the negative impact is due to the use of the Walmart business model. A new 'generic' grocery store does not equal economic harm, but a new Walmart does."

How Walmart Hurts the Economy - Small Towns - BusinessNewsDaily

And in Hawai'i's case that business model includes having taxpayers shoulder over $17 million dollars in public assistance costs for Walmart workers, who simply aren't paid enough.

[mdand3boys]

In Hawaii, specifically the Big Island, that simply hasn't happened. This isn't the mainland.

Pointing to mainland studies, as facts, that are 9 to 17 years old, just doesn't work to prove a false point about the Walmart situation on the Big Island.

Hilo Walmart didn't displace any shops when it was developed. It was bare land, owned by Hawaiian Home Lands, that was leased to Walmart, at a rather staggering annual lease price.

Big Island Walmart stores pay more per hour than the small shops in the area. Target in Hilo, located behind Walmart, also on land leased from Hawaiian Home Lands, pays even higher wages than Walmart. I believe that is a good thing?

[OpenD]

And here's something more scholarly, and more recent, a 2010 study by Hunter College for the NYC government, that examined 50 earlier studies across the country, in every economic sector and in every state...

Wal-Mart’s formula for financial success includes: low-wage labor, limited health benefits, and leveraging of government subsidies
.....
The overwhelming weight of the independent research on the impact of Wal-Mart stores on local and national economies – including jobs, taxes, wages, benefits, manufacturing and existing retail businesses – shows that Wal-Mart depresses area wages and labor benefits contributing to the current decline of good middle class jobs, pushes out more retail jobs than it creates, and results in more retail vacancies.
.....

1. Wal-Mart’s Economic Impacts: Net Loss of Jobs, Fewer Small Businesses

• Wal-Mart store openings kill three local jobs for every two they create by
reducing retail employment by an average of 2.7 percent in every county they
enter.

• Wal-Mart’s entry into a new market does not increase overall retail activity or
employment opportunities. Research from Chicago shows retail employment did
not increase in Wal-Mart’s zip code, and fell significantly in those adjacent.

• Wal-Mart’s entry into a new market has a strongly negative effect on existing
retailers.Supermarkets and discount variety stores are the most adversely
affected sectors, suffering sales declines of 10 to 40% after Wal-Mart moves in.

2. Wal-Mart’s Costs to Taxpayers

• Wal-Mart has thousands of associates who qualify for Medicaid and other publicly subsidized care, leaving taxpayers to foot the bill.13 For instance in Ohio. Wal-Mart has more associates and associate dependents on Medicaid than any other employer, costing taxpayers $44.8 million in 2009.

• According to estimates, Wal-Mart likely avoided paying $245 million in taxes
2008 by paying rent to itself and then deducting that rent from its taxable income.

3. Wal-Mart’s low paying jobs contribute to the decline of the middle class

• Median household income declined by 1.8% nationally and 4.1% in New York City in 2009.17 This decline will be exacerbated by low paying Wal-Mart jobs.

• Wal-Mart’s average annual pay of $20,774 is below the Federal Poverty Level for a family of four.

http://advocate.nyc.gov/files/Walmart.pdf

[mdand3boys]

In Hawaii, taxpayers shoulder millions of dollars in public assistance money from thousands of mom-and-pop business owners own employees, who simply aren't paid enough.

[Dreaming of Hawaii]

Hawaiian By Heart pointed out that many businesses are part of national chains and so therefore not "local" businesses. These are all franchises, so the local McDonald's is probably owned by a local resident and not by someone in New York City. And the people who have jobs there are local residents, not someone who lives on the mainland.

I know that where I live near South Point one local restaurant is L&L Barbeque. They are part of a national chain, but a nice couple who live in Ocean View are the owners. There are not many other restaurants in Ocean View -- just a couple of really small pizza places and a coffee shop. Jobs are very hard to find in this area, so we don't get mad at L&L because they are part of a national chain. They are providing jobs!

[mdand3boys]

Originally Posted by Dreaming of Hawaii

Hawaiian By Heart pointed out that many businesses are part of national chains and so therefore not "local" businesses. These are all franchises, so the local McDonald's is probably owned by a local resident and not by someone in New York City. And the people who have jobs there are local residents, not someone who lives on the mainland.

I know that where I live near South Point one local restaurant is L&L Barbeque. They are part of a national chain, but a nice couple who live in Ocean View are the owners. There are not many other restaurants in Ocean View -- just a couple of really small pizza places and a coffee shop. Jobs are very hard to find in this area, so we don't get mad at L&L because they are part of a national chain. They are providing jobs!

EXACTLY !

[J.vick]

And the food there at (L&L) is really good!