The coming of the Bentonville Huns: Wal-Mart’s march on the cities

Guest Post by Morbo

In 1453 A.D., Constantinople fell to the Ottoman Turks. This did not happen because the Turks just woke up one day and decided to attack. Muslim armies had been chipping away at the Byzantine Empire for hundreds of years and conquering its lands. By 1453, Constantinople was all that was left of a Christian empire that once included the Balkans, Asia Minor and parts of North Africa.

Recently, I was looking at an interesting map of the area where I live that was published in The Washington Post. It accompanied a story about Wal-Mart, and what I saw alarmed me. In short, Sam Walton’s hordes have used time, attrition and a long-term strategy to advance, and now they’ve got us surrounded. It’s Constantinople all over again!

During the final siege, Constantinople held out for about 50 days. My area can probably fend off Wal-Mart longer than that, but I’m not sure it will be much longer. Like well disciplined troops, Wal-Mart just keeps marching forward.

The Bentonville Boys know what is at stake. As The Post noted:

Wal-Mart, which has conquered rural America with more than 3,000 stores, desperately needs to break into the urban market to maintain its phenomenal growth. So far, it has been rebuffed in Chicago, New York and Los Angeles, and the retailer views Washington as an important frontier for expansion.

When my area falls — and I’m sad to say I see it as inevitable — the consequences could be dramatic.

Around here, two dominant supermarket chains offer well-paying, unionized jobs to their employees. Workers at these stores have actual pensions and other good benefits.

Wal-Mart is going to change that. Clerks at Wal-Mart make about three to four dollars less per hour than their counterparts in the unionized supermarkets. Wal-Mart employees can contribute to a 401 (k) plan but do not get the traditional pension the supermarkets’ employees enjoy. Wal-Mart’s health plan is expensive and pales next to what the union won for its members.

These supermarket worker benefits are definitely better — but they mean higher overhead. Consequently, food at Wal-Mart costs less. The Post sent reporters to buy identical items at a Wal-Mart and a grocery store from one of the chains. Wal-Mart came in about $25 less on an order that ran above $100 total.

My father was a union man. I don’t shop at Wal-Mart. I will never shop at Wal-Mart. But frankly, I understand why so many do: It’s cheaper, and in some parts of the country, people are rapidly running out of options.

I keep going back to what for most people is the bottom line: price. Progressive who dislike Wal-Mart have to deal with this reality: The savings make a difference to some people.

As a middle-class American striving to keep my head above water in George W’s “reward-the-rich-and-screw-everyone-else” nation, I feel the squeeze that is slowly grinding us to a pulp. My energy bills last year were frightening. Mrs. Morbo and I both drive fuel-efficient cars, but spiraling gas prices still hurts. As parents, we must deal with unexpected expenses that come along. (“Morbolina’s braces cost how much?!”) Things in the house break down with annoying regularity. On top of all this, we try to do the right thing by saving for our own retirements and the kids’ college educations.

I handle the grocery shopping for the Morbo homestead. There are four of us and one cat (who serves as CEO). I generally spend about $150 a week. If I could shave 25 bucks off that, I’d have $100 extra a month. Does that appeal to me? Yes. Will I start shopping at Wal-Mart if they open one near me to get it? No. The ghost of my dad would appear in my kitchen at night, singing “Look for the Union Label”; no one wants that.

But what about the guy across the way, the guy whose financial position is even more precarious than my own? Will he shop at Wal-Mart? He sure will.

Sorry to be pessimistic, but I have seen the future, and it isn’t pretty. Greek fire held off the Turks for a while at Constantinople, but as time passed the ingredients for Greek fire dried up. The city’s defenders ran out of bowstrings and, according to legend, wove together locks of hair from women in the city.

But soon there were no more arrows. The walls were breached, and the city fell.

The unions in my area are fighting the same battle against Wal-Mart. So far, they’ve convinced friendly local governments to use zoning regulations to fend off the Beast from Bentonville. It has worked — for now. Our walls stand.

Meanwhile, the enemy keeps encircling us. Seeing it on a map, you can’t help but reach for a military metaphor. You’re deep in enemy territory, your back is to the sea, and you are surrounded. They tighten the noose….

Wal-Mart has already taken small-town America. There, people trashed their own downtowns for the sake of cheaper peanut butter. Waving the standard of victory from that campaign, Wal-Mart marched on to the outer suburbs, then the inner suburbs. They fell without a shot. A few cities still hold out, but they look more like Constantinople every day.

When that city fell, the customary three days of looting broke out. It wasn’t pretty. But then the new overlords reestablished order, folded the community into their empire and renamed the place Istanbul. Today it is the capital of Turkey. In short, they were assimilated. Perhaps some of them even learned to like it.

Here’s what worries me: The day will come when those in the cities are finally assimilated. The last K-Mart will be shuttered, the final apocalyptic battle with Target will have been won; unionized grocery stores will be a distant memory. We’ll be at the Bentonville gang’s mercy. What price then will Wal-Mart charge us for peanut butter and Bounty paper towels?

According to Wikipedia, Istanbul became the capital of the Ottoman empire shortly after its conquest. When the Republic of Turkey was created, the capital was moved from Constantinople to Ankara in 1923.

  • My bad. Ankara is indeed the capital of modern-day Turkey. Istanbul is the largest city.
    Anyone ever heard that old song (later covered by They Might Be Giants) “Istanbul was Constantinople now it’s Instanbul not Constantinople/For a Turkish delight on a moonlit night.”

  • Anecdotal evidence: Hawai’i is about as big a union town (government employees and hotel/restaurant workers are the big ones) as you’re gonna find in the US, unless you’ve still got a mine or car plant within your city limits. Yet the hordes lining up at Wal-Mart when it opened its first stores here showed that people don’t/won’t or can’t afford to make the connection between lower prices and non-union labor. It’s a reflection of the incredibly high cost of living out here; people need to cut costs wherever they can.

  • Divide and conquer.

    Capitalism works when consumers and workers force corporations to compete with one another for the resources they need: labour and consumer dollars.

    But when corporations split up consumers against each other, or split up workers against each other, we lose. When Wal-Mart very diabolically pit consumers *against* workers, then the corporations win BIG TIME, and we lose everything.

    Wal-Mart’s success is based largely on OIL. The cheap shit in their stores gets transported from China on big-ass cargo ships, then gets deposited in the stores “just in time” via trucks, rather than more slowly by trains and warehouses. That’s Wal-Mart’s big innovation in business: they don’t warehouse stuff, they make the producers do it and they use faster (and more gas-guzzling) shipping methods such as trucking to get stocks where they’re needed. They also use information technology cleverly too, which increases their efficiency in a way that’s arguably environmentally helpful. But this whole long-distance transport of goods isn’t.

    So, as oil becomes more expensive, and less available, Wal-Mart’s competitive advantage suffers, and locally-produced goods become more advantageous. Also, as the Chinese have to pay more for oil, their costs go up too, and thus ultimately the prices at the checkout. Of course the WalMartians also have other huge advantages too (like the brutal deals they strongarm suppliers into) but this whole big-box-retailer shit is largely a cheap-oil-driven phenomenon. Peak oil will tamp that down somewhat.

  • Publius,

    Good comments. I suspect, though, that your “silver lining” regarding peak oil harming Wal-Mart may end up being a mirage.

    Consider: the “peak oil” that everyone talks about is just in the light crude reserves; there is a lot of other heavy crude and oil sands, that is hugely expensive to extract, refine and market, but the higher the price the more practical it becomes. Everyone will be in the same boat as far as just-in-time production supply of raw materials to the manufacturers and retailers, so that any negative effect on Wal-Mart will be blunted by the “it hits everyone to relatively the same extent.”

    Also, Wal-Mart and the Bush policies have accelerated the loss of manufacturing capacity in this country, and to a lesser but clearly demonstrable extent the same is true in distribution and retailing capacity. This phenomenon is accelerating, and in just a few more years our domestic manufacturing capacity and serious Wal-Mart competitors will be severly crippled or gone entirely.

    By the time that light crude peak oil hits [the consensus is that it’s coming in the next few years, but we aren’t there yet], it will be too late for domestic manufacturers, distributors and retailers to exploit the “location, location, location” advantage that might open up due to Wal-Mart’s heavy transportation costs — they’ll all be dead. Then, when all prices skyrocket, even for basic foodstuffs, we will all be screwed.

    Your thoughts?

  • Question : why don’t unions enlist already unionized retail chains to help unionizing WalMart ? It would be in their interest.

  • I live right down the road from Bentonville in Fayetteville. People think the sun rises and sets in Wal-Marts Warehouse around here. And like everywhere else in Americka, nobody noticed Mom and
    Pop businesses being murdered. They just whine through their noses
    ‘Well, I guess that’s progress.’
    I had the dubious honor of working for Wal-Mart last November.
    It only lasted about four days because my gag response was starting to kick in really hard. They indoctrinate hard against unions with a stirring little film they show with people(probably actors)vehemently declaring ‘I don’t need any one to speak for me’ or ‘What if there’s a strike? I need to work!’ Meanwhile there are little scenes of union organizers sweet talking the poor, gullible workers into signing cards or pressuring reluctant workers with veiled threats. It would win an Oscar if they gave out Oscars for bullshit.
    The amazing thing about it is the people who get brainwashed
    by ‘I don’t need anyone to speak for me’ are the ones that latter
    wonder who to go to when they get shafted by Wal-Mart. Tou hear some real nightmare stories about Wally World around here. And, after working for them for four days, I decided I rather rob EZ-Marts than live like that. Luckily, though, I got a factory jobs
    so the EZ-Marts are safe…for now.

  • Where I live, in somewhat rural Western Massachusetts, the Wal-Marts have already sucked the life out of many a town’s downtown. But fortunately, they still haven’t made much of a dent on the grocery business, and we still have thriving union supermarkets.

    A part of the problem is that we live in a consumerist society, where we, as a country, purchase way more than we can afford in consumer junk, and way more than the earth can environmentally sustain. “More” and “cheaper” is not the way we should be going. It may take a crisis (a real crisis, not the pseudo-crisis Bush deceptively promotes for his own ends on social security), before this fundamental consumerist mind-set runs us into the ground.

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