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| Monday, 19 July 2004 |
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Resistance against wal-martisation by Molly Conisbee The massive expansion of Wal-mart, and its damaging effect on local economies across the USA, has received a small setback. Neighbours of a new mega-store in the outskirts of Los Angeles have unexpectedly succeeded in fighting off the plans. The defeat of Wal-mart, owners of the UK chain Asda, was so unexpected that it made the headlines of the business pages. The company spent more than $1 million campaigning in a local ballot in the suburb of Inglewood, but more than 60% of voters gave it the thumbs-down. It was to have been the first of 40 'SuperCenters' across California. Similar struggles seem to be gearing up in towns right across the USA, fuelled partly by a new report that says that Wal-mart's arrival will bring down retail wages. And it may be that a similar battle against the effects of unbridled supermarket expansion is growing in the UK too. [The London-based new economics foundation] nef is increasingly hearing of campaigns to halt the decline of local economies by protesting against the encroachment of the superstores, though these are not yet knitted together nationwide. nef's recent Ghost Town Britain II: Death on the high street report highlighted the devastating effect that supermarkets moving in can have on the local economy, including: * Worsening economic conditions for small retailers, service providers, suppliers and wholesalers. * The loss of real choice for the consumer. * The loss of diversity and identity through the creeping homogenisation of the high street. The statistics of Ghost Town Britain are now well known - we are losing specialist stores like butchers and bakers at the rate of 50 a week. General stores have been closing at the rate of one a day, and 20 traditional pubs are closing every month. The impact of the big supermarkets can be hidden, because there is sometimes a time lag of two or three years before the supermarket grip chokes the life out of local economies. This is because smaller, local stores may take a couple of years before their operating resources are used up in the fight against the big players. Another threat to the high street has been the growth in 'fake local' stores under the flagship of the big supermarket players. For example 'Tesco Express' stores have reportedly caused drops in business of 30-40% for other local shops. But local communities are leading the fight back. Over the past few months, many groups who are organising local campaigns against the growth and dominance of the big supermarkets have contacted nef. - Third World Network Features |
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