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HomeMy WebLinkAboutCOM 0032.002 2006-2008 1 VIAL*NIART~ Stores, Inc. January 3, 2007 The Hon. K. Mgel Pilago Chair, Planning Committee Hawaii County Council Re: Resolution 21-07 Dear Chair Pilago: I am writing to express Wal-Mart's strong opposition to Resolution 21-07 and the accompanying draft ordinance (together, the "proposal°). On ks face, the proposal is a transparent attempt to prevent Wal-Mart from competing in the grocery business on the Big Island. Proponerrts may call it a "Big Box Bill,° but it is really a "Big Grocery Bill," because that is what it would mean for island families. The proposal is very poor for many reasons: • It is based on false premises It would not achieve the benefds d Gaims It is anti-competitive and unfair • It would harm working families by keeping food prices higher than they need to be Please do not be misled. Regardless of what its proponents may claim, this proposal is not intended to protect small business. Rather, it is a cynical attempt to protect supermarket chains from having to compete with Wal-Mart, which typically offers grocery prices 17-20% below other supermarkets. This might be good for supermarkets that want to maintain their high food prices, but d would not be in the best interests of Big Island families on a tight twdget who would benefd from increased price competition and an average savings of $2,300 per year when a family shops at a Wal-Mart. The proposal's sponsor, Council Member Stacy Higa, claims in the December 28, 2006 issue of the Hawaii Tribune-Herald, "Most of the Supercenters that have started up on the mainland have pretty much destroyed a lot of the small businesses." On the contrary, independent research indicates that many small businesses thrive alongside Wal-Mart discount stores and Supercenters, and towns with SuperceMers believe they are good for their communities. (I have attached some information for your reference.) Corpm, No. 3 2 ° 2. Rof. To:1'cn Rif. Uate.JAN 0 3 ~nm In addition, news articles from Kauai and interviews from Oahu have provided numerous accounts of communities benefding from our presence and small businesses prospering along side our stores. But even if it were true that Supercenters were bad for local businesses, the proposal before you would do nothing to protect them, because it would not prevent Wal-Mart or any other retailer from opening stores in every town on the Big Island, no matter how large, unless they carried Groceries. It seems fairly obvious that the real intended beneficiaries of the proposal are the big supermarket chains who seek protection against competition that might force them to reduce their prices. Wal-Mart is proud to be a part of the Big Island and I am proud to have been a part of the store opening team for the Hilo Wal-Mart. We employ over 750 associates in our two stores in Hilo and Kona. Full-time hourly associates in Hawaii eam an average of $10.58/hour, with great benefits and bonuses. Our customers often tell us how much they appreciate the savings Wal-Mart offers them on the necessities of life. Wal-Mart stands ready, willing and able to sit down with County leaders to discuss community problems and concerns and to find fair solutions that do not restrict free competition or unnecessarily burden working families. We want to continue to serve the people of the Big Island. We ask only for an even playing field. Respectfully, Brian Halsey Hawaii Market Manager cc: The Hon. Pete Hoffman The Hon. Dominic Yagong The Hon. Donald Ikeda The Hon. J Yoshimoto The Hon. Stacy Higa The Hon. Emily Naeole The Hon. Bob Jacobson The Hon. Brenda Ford Attachments ' n ~Y1 n KEY FINDINGS OF SUPERCENTER SURVEY ~,vjJC,v • Cher 9590 believe that Wal-Mart has `positively" impacted their community. • An overwhelming number of communities would recommend Wal-Mart Supercenters to other communities, and not one respondent expressed any regret of having a Supercenter built in their community. This support can be attributed to: o Supercenters provide communities with greater consumer choice and savings, new jobs, sales tax revenue, and charitable contributions. o Wal-Mart is viewed as a good corporate citizen. o Sales tax revenue for local public services and economic development were among the most compelling reasons for local government to approve Supercenter projects. o Respondents gave Wal-Mart high marks for working with communities to address community concerns and to develop accepting architectural designs that complemented communities and neighborhoods. • The primary concerns related to Supercenters being constmcted were consistent from one surveyed community to another. The most common concems associated with Supercenters were general quality of life issues, such as impacts on traffic, threat to local business, and concems related to Wal-Mart's employee benefits. In communities that experienced some initial opposition, respondents believe that perceived threats to small business, traffic, property values and crime were either not real or eminent, or were mitigated through the local planning process. OTHER HIGHLIGHTS: • The survey uncovered that despite the initial reaction of some communities, all came to accept the benefits of Supercenters after the projects were developed. o Cher 9090 of respondents believe that their Supercenter has made a `positive impact" on the issues of job creation and economic development. o An overwhelming number of communities did not believe Supercenters were responsible for other businesses going out of business. In fact, 63.5% believe Supercenters have a "positive impact" on existing businesses, and 32go believe that Supercenters have neither a positive or negative impact (no impact). o Dispelling concems that Supercenters increase community crime rates, 86go believe the Supercenter has neither positively nor negatively (no impact) impacted crime rates in their community. o While many communities believe that Supercenters had a positive impact on property values, not one cited an example loss of property values. ..i~,~vcta,tr~i r~g~ ! CIL ~ s- ~;~~HRIJ~IV ISI_.,~Nl~ ~~F ~.,r Print Page Posted: Monday, Aug 08, 2005 - 02:05:12 am HST Lihu`e's WaI-Mart marks 10th anniversary By Andy Gross -The Garden Island . ~ - WaI-Mart, the giant next door, celebrted its 10 anniversary this R weekend as a Kauai institution. R r According to store manager Janie Whitehead, festivities began Friday with an in-house luncheon for the store's employees, and , - then a big, daybng, public bash Saturday. Ar y ~'_-ros= ~ T ~I Whitehead, who has been at the Kauai WaI-Mart for more than two Kauai wal-mart's years, said the greatest challenge during her tenure has been Janie wnitenead. something akin to a mixed blessing. "Our biggest challenge has been our increase in business. We're receiving so much more merchandise, and there's not always enough people (employees) available," she said. "We do have a very good core group of associates, but it can be hard to fill entry-level positions," she said. Whitehead said that, currently, WaI-Mart has 303 full-time employees and 39 part-time employees, eight assistan4 managers, and one manager-in-training. On average, it has more than 6,000 register transactions per day. Whitehead said the food department, which has gotten bigger over the years, is number one overall in terms of store sales. Since its inception 10 years ago, nothing has been added to the original concept of the store except customers and more and more merchandise, she said. Whitehead, who jokingly calls her small space In the back of the cavernous store (with spare merchandise such as bicycles hanging from the ceiling) as the "executive offices;' said the 119,000 square-foot store has exceeded initial expectations. "We've had more sales volume than expected," she said, adding the building was getting a bit old. Plans are in the works for some refurbishment to the facility in September or October. Whitehead said there is the possibility the store may expand, and that a large grocery department may be added in coming years. While owners of small businesses lamented the arrival of WaI-Mart as something that would signal the end of the mom-and-pop store on the island, long-time reporters can't recall one store-closing of a business during that time where the owners attributed their demise to the arrival of WaI-Mart. While WaI-Mart's arrival 10 years ago did force some business owners to refocus their efforts either into specialty items not carried by Wal-Mart or retooling to focus on more intense customer service, the fad is that WaI-Mart's arrival has been good for businesses throughout Kauai. Except, possibly, where competition for the availability of scarce workers is concerned. Wal- Mart's arrival has meant creation of more jobs not only in the store, bu[ to vendors and others doing business with Wal-Mart leaders. http://www.kauaiworld.com/articles/2005/08/08/news/news02.prt 1/2/2007 Leaders with the retail giant face the arrival of a possible rival in Costco, which is set to open in the near future. "I'm sure it will have an effect, but I'm not sure what it will be," she said. "We'll have some customers in common, but they're more of a wholesaler to small businesses and large families, and we will remain quicker (to get in and out of), and keep our prices competitive," she said. Whitehead, who had worked at other Hawaii Wal-Mart stores, said she is very happy on Kauai, and would like to stay as long as possible. Events planned for today, Saturday, Aug. 6, from 10 a.m. to 6 p.m., include in-store demonstrations, like tips on fishing poles and lures and a coloring contest in the sporting goods department; ales-making contest in the crafts department, and an orchid-care seminar in the garden department. Fashion shows will be in the women's, men's, infants, intimates and boys and girls departments, with associates and spouses and children participating. Wal-Mart Stores, Inc. is the world's largess retailer, with $285.2 billion in sales in the fiscal year ending Jan. 31, 2005. Company leaders employ more than 1.6 million associates worldwide through more than 3,700 facilities in the United States and more than 1,600 units in Mexico, Puerto Rico, Canada, Argentina, Brazil, China, Korea, Germany and the United Kingdom. More than 138 million arstomers per week visit Wal-Mart stores worldwide. • Andy Gross, business editor, maybe reached at 245-3681 (ext. 251) or The Garden Island ..,.r b?~`nde.x Copyright ©2007, Lee Enterprises, Inc. http:!/www.kauaiworld.com/articles/2005/08/08/news/news02.prt 1/2/2007