Watch Out for Falling… Wal-Marts

Recently, a supporter of Friends of Fair Growth announced that prospects for the ‘development’ of a new Wal-Mart Supercenter west of Murphysboro, IL may be going down the Big Muddy sewer due to the Federal Aviation Administration nixing a proposed water tower that would serve the business location.

Friends of Fair Growth is a grassroots organization that opposes construction of the Wal-Mart because of its alleged negative impacts upon small businesses, the economy and environment. Wal-Mart denies such harm. The company is trying to send a message that the retail giant a good thing for its more than 1.2 million workers and the region. “Giant” is an understatement. It is the ultimate ‘Big Box’ store. If Wal-Mart were a country, its economic output would be the 20th largest in the world. Wal-Mart already has nine stores within a one-hour drive of Carbondale, IL.

Not everyone buys the company position. Even the Jackson County Board, not known for its economic development prowess, has voted its opposition to the Murphysboro development. Nationally, pressure is mounting against many projects of the retailer from a range of social justice organizations like the Association of Community Organizations for Reform Now (ACORN) to numerous municipalities where the company seeks to build. Even the financial community is starting to feel threatened by the economic giant.

Studies by groups like Civic Economics and the Institute for Local Self Reliance have constantly shown that locally-owned retail stores provide more of an economic multiplier effect to an area than comparable chain stores. Blogs and websites such as WakeUpWalMart.com and walmartwatch.com aggressively skewer the company for its employment practices.

A 2006 survey by the Hingham, Massachusetts-based Saint Consulting Group, indicates that we have a “love-hate relationship with Wal-Mart. Even as the global company revs up a campaign to protect its reputation, and despite Wal-Mart's undeniable popularity among consumers, almost two-thirds of those surveyed (63%) said that they would oppose a Wal-Mart store if one were proposed in their community.”

As if community organizations weren’t keeping the Wal-Mart’s legal and publicity departments busy enough, last month the company earned SIX of CNN’s 101 Dumbest Moments in Business awards in 2006.

So, if Wal-Mart is not the ultimate answer to local economic prosperity in southern Illinois, what is?