HomeMy WebLinkAboutCOM 0032.018 2006-2008 Testimony from Jeanne Ryan regarding Resolution 21-07
Home address:
3106 Ululani Street
Hilo, Hawaii 96720
Mailing address:
PO Box 10094
Hilo, Hawaii 96721
Phone: 969-3103
I would like to testify in support of Resolution 21-07 limiting the size and
scope of retail superstores in the County of Hawaii. Without such proactive
planning, the Island of Hawaii risks unchecked development that can irreparably
damage the island.
Unlimited superstores are not good for our community for several reasons.
First, superstores destroy the local business network. These non-local
corporations source their goods off-island, cutting local businesses out of the
equation. Then, because superstores operate through economies of such vast
scale, their retail prices undercut local businesses. Thus both local wholesale
and local retail operations can be hurt. A 2003 report on supercenters prepared
for the City of Los Angeles found the creation of supercenters with large grocery
sections to be especially destructive, as such operations often put existing
grocery stores out of business. A case in point in Mississippi, where a 2002
study found that local groceries had lost 17% of their retail sales by the fifth year
a Wal-Mart supercenter was operating. The Los Angeles study notes that when
local groceries are put out of business, other businesses located nearby suffer
severely, as grocery stores are often the hub for shopping districts.
Local consumers are also hurt by such superstores. Lower prices are
often cited as the reason to allow superstores in. This view misses the bigger
picture. As local businesses go under, local consumers end up with fewer and
fewer shopping options. This is cited in the Los Angeles report, which notes
supercenters' "tendency to cannibalize competing retail businesses."
Supercenters that drive out local grocery stores can especially hurt those
consumers who rely on their neighborhood groceries for food.
Superstores also hurt consumers in less obvious but still costly ways.
Typically, they require extensive municipal services, for example due to
increased traffic impacts. Both the Los Angeles report and a 2004 report on the
San Francisco Bay area note the considerable increase in municipal costs
caused by the increased traffic supercenters bring. In addition, if local
businesses are hurt, superstores can result in an erosion of the municipal tax
base. This was the finding of the Los Angeles report, which states that
superstores can decrease municipal revenues due to the loss of sales and
property taxes resulting from store closures. In the end, it is local consumers who
end up paying the price tag for such costs through their own taxes.
Comm. No. ?J Z ~ g
Ref. To: Pre~rrb0
Ref. Uafe, IaN 1 8 inn?
Superstores also hurt the local community because they are often very
poor employers. Wal-Mart stands out as the most striking example. On the
mainland, Wal-Mart is being sued in numerous states over issues including
violation of child labor laws, underpaying hourly workers, threatening and firing
pro-union workers, lack of payment for hours worked, and sex discrimination in
promotion, pay and training. Aside from these glaring examples, most
superstore jobs are NOT jobs that offer a decent wage. For example, according
to the National Association of Women, full-time sales associates at Wal-Mart
earn only an average of $6.10 an hour, which frequently leaves their annual
earnings below the poverty level; half of these full-time employees qualify for
federal food stamps. Such jobs do not offer meaningful opportunities for
community members. They also often result in additional costs to the
community, as municipalities are forced to provide social welfare services.
By driving out existing businesses and offering low-paying jobs,
supercenters can hurt the entire community, as low-paying jobs replace those
that are higher paying. The City of Los Angeles report found that superstores
can depress wages by as much as $8 dollars an hour. Using Wal-Mart as a
specific example, a 2005 study by an economist from the National Bureau of
Economic Research found that the average Wal-Mart store reduces earnings per
person by 5 percent in the county in which it operates. Lower wages hurt
residents' quality of life and further depress the local economy, as consumers
have less money to spend on goods and services in the community.
Regulating the size of superstores is crucial for the overall well-being of
our island. Much has been made of the need for the Island of Hawaii to support
diverse economic development that can offer residents decent-paying jobs and
provide the island with local sources for key products, such as food items. This
is essential for us to have a healthy local economy that can support its residents
and remain somewhat insulated from catastrophic economic events that could
threaten the tourist industry or cause a drastic increase in off-island prices.
Unlimited development of non-local superstores will drive out local businesses
and the meaningful job opportunities they offer, as well as make us more
dependent than ever on off-island products. Such development also will change
the identity of the island, as it destroys the unique cultural aspects of our area by
replacing independent local establishments with generic box stores.
I urge the planning committee to pass Resolution 21-07. I hope the
county council will take the time to fully explore the impacts of supercenters;
there is a great deal of information available that clearly shows the extensive
negative effect they have on communities. We need careful, proactive planning
to guide development that will support our island and the people that live here.
Sources:
1. City of Los Angeles Documents:
a. Final Support of Research for Big Box Retail /Superstore Ordinance prepared
for the City of Los Angeles, October 2003
htta~//www lacity oro/council/cd13/houscommecdev/cd13houscommecdev239629
107 04262005.adf
b. Options for Regulating the Development of Superstores
Report Prepared by the City Attorney's Office, December 2003
httu~//www lacity ors/council/cd13/houscommecdev/cd13houscommecdev239629
364 05042005.odf
c. City of los Angeles: Housing, Community and Economic Development
h~~//www lacity orq/council/cd13/c13pf1e htm
2. Wake Up Wal-Mart.com
http://www. wakeupwalmart. com/facts/
3. National Organization of Women Web site
http//www now orq/issues/wfw/wm-facts html