An article in Business Week explains that Wal-Mart has a new business plan. The surprise is that it doesn't involve fields of asphalt amid suburban sprawl. Wal-Mart now hopes to begin opening stores in poor urban neighborhoods in the near future.
Wal-Mart often gets a bad rap, and deservedly so. The mega-chain does much to feed off and fuel suburban sprawl and unorganized growth throughout America. Moreover, it indiscriminately destroys small businesses with its massive economy of scale. And who can forget the barrage of horror stories describing hour-shaving managers and the company's horribly deficient health care plans?
But there is one thing Wal-Mart does well. It offers low-income consumers a chance to buy more. It increases their purchasing power, and subsequently boosts the U.S. economy. Unfortunately, the suburban model requires shoppers to arrive via a car, a mode of transportation that isn't getting any cheaper. If Wal-Mart really does dedicate itself to serving poor urban neighborhoods (and the company says it's going to open 50 new stores in such areas over the next two years), this would do a lot for helping poor people survive on their paltry incomes.
It'll be interesting to see how this pans out. The Wal-Mart image is so ingrained in my head, I cannot even imagine how the store would look in an urban context.
Comments