1.5.1 Big Box Stores and Small Town Alberta
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1.5.1 Big Box Stores and Small-town Alberta
What is the effect of globalization on your life?
Wal-Mart employs more people around the world than any other single organization. It is the largest company in the world, serving more than 100 million shoppers per week. Wal-Mart's "bottom line" is bringing goods to consumers at the lowest possible prices.
What is the effect of such a huge global force on our communities? In this case study, you will look at the effect of Wal-Mart on the Alberta community of Slave Lake.
Wal-Mart starting hiring in September 2005. Many people were happy to apply to work at the store because its starting wage was high by Slave Lake standards. Other employers increased their starting wages to keep their workers. However, applicants for positions at Wal-Mart were surprised by some of the questions they were asked in their interview. Local high school student Krista was shocked to be asked what she would do if she disagreed with store policy. "I've worked at a number of stores in Slave Lake, and I have never been asked that question before," Krista says. "I told them that if I disagreed with something they were doing, I would talk to my supervisor and if I was not satisfied, I would talk to the manager. Then, they asked me what I would do if I still disagreed with what they were doing. They wanted to know if I would take it public and I told them yes. That was pretty much the end of the interview. They showed me out, and I never heard from them again. I'm not surprised they didn't hire me, but isn't it my right to speak up when I think something is wrong?"
Wal-Mart opened officially in November 2005. Record numbers of shoppers flooded the store, buying everything in sight. High school student clerk Marissa put through over 500 items in one hour. "It was just crazy!" she said. She was very excited to find a part-time job that paid close to the top of the pay scale for high school students involved in retail.
Many of the shoppers were pleased to be able to shop in Wal-Mart.
Wal-Mart announced officially the building of a new store in Slave Lake, Alberta, in March 2005. The prospect of a large store coming to town excited many shoppers who did not have access to any large shopping facility. However, the news made many local business people anxious because they feared a loss of customers. The Wal-Mart store was part of a larger highway complex that included Canadian Tire, Sobey's, and Tim Hortons. Soon, many shoppers were going to the highway location to shop, leaving the downtown deserted.
Store closures: Slave Lake Grocery announced it was shutting its doors permanently after the announcement that Wal-Mart was opening in town. The grocery store had been a fixture in Slave Lake for decades and was well known for sponsoring local sports teams and offering discounts to schools and community groups. Soon, several other businesses shut their doors, including Between Friends Bakery, The Bargain Store, Anne's Music, Home Hardware, The Dollar Store, and Special Moments Flowers and Gifts. No new businesses were taking their places downtown.
Store closures: Slave Lake Grocery announced it was shutting its doors permanently after the announcement that Wal-Mart was opening in town. The grocery store had been a fixture in Slave Lake for decades and was well known for sponsoring local sports teams and offering discounts to schools and community groups. Soon, several other businesses shut their doors, including Between Friends Bakery, The Bargain Store, Anne's Music, Home Hardware, The Dollar Store, and Special Moments Flowers and Gifts. No new businesses were taking their places downtown.
Wal-Mart starting hiring in September 2005. Many people were happy to apply to work at the store because its starting wage was high by Slave Lake standards. Other employers increased their starting wages to keep their workers. However, applicants for positions at Wal-Mart were surprised by some of the questions they were asked in their interview. Local high school student Krista was shocked to be asked what she would do if she disagreed with store policy. "I've worked at a number of stores in Slave Lake, and I have never been asked that question before," Krista says. "I told them that if I disagreed with something they were doing, I would talk to my supervisor and if I was not satisfied, I would talk to the manager. Then, they asked me what I would do if I still disagreed with what they were doing. They wanted to know if I would take it public and I told them yes. That was pretty much the end of the interview. They showed me out, and I never heard from them again. I'm not surprised they didn't hire me, but isn't it my right to speak up when I think something is wrong?"
Wal-Mart opened officially in November 2005. Record numbers of shoppers flooded the store, buying everything in sight. High school student clerk Marissa put through over 500 items in one hour. "It was just crazy!" she said. She was very excited to find a part-time job that paid close to the top of the pay scale for high school students involved in retail.
Many of the shoppers were pleased to be able to shop in Wal-Mart.
- "No need to drive to Edmonton to shop" was frequently heard.
- "You should see the food items in there!" one local retiree commented.
- "Some people say to me, you're shopping at Wal-Mart? They don't think it's right, but hey, they're not paying my salary. With prices like these, I can't afford to shop anywhere else."
On the other hand, other consumers vow they will never set foot inside Wal-Mart. According to one resident, "I don't agree with many of Wal-Mart's practices. They outsource all production to Asia, which means North Americans lose jobs. They buy products from sweatshops with questionable child labour practices. They force suppliers to sell goods at lower and lower prices, with many of them going out of business. They effectively shut down stores where employees want to unionize. They have set up shop in environmentally sensitive areas and even on sacred native ground in some countries. I can't support a business like that, even if it means I have to pay more."
Wal-Mart brings goods to consumers at extremely low prices. Smaller retailers cannot compete. Because Wal-Mart can buy huge amounts of products and can buy products globally, they are able to get products at greatly discounted prices. The ability to obtain goods for low prices enriches the lives of people in some ways. It provides products that are affordable and it provides a variety of products with its "one-stop shopping". Companies such as Wal-Mart provide employment. Wal-Mart allows its shoppers to feel more connected to the larger world.
What is the "high cost of a low price"? As the Slave Lake example demonstrates, some locally-based store owners cannot compete with the size and power of Wal-Mart. They are forced out of business, taking money out of the local economy. Outsourcing of production to China and other out-of-Canada locations means that manufacturing jobs in Canada are lost while countries where lower wages are paid gain employment for their people. In addition, the pressure Wal-Mart puts on suppliers to deliver cheaper products can force them out of business.
What is the "high cost of a low price"? As the Slave Lake example demonstrates, some locally-based store owners cannot compete with the size and power of Wal-Mart. They are forced out of business, taking money out of the local economy. Outsourcing of production to China and other out-of-Canada locations means that manufacturing jobs in Canada are lost while countries where lower wages are paid gain employment for their people. In addition, the pressure Wal-Mart puts on suppliers to deliver cheaper products can force them out of business.