My
family is from south central Idaho. When I was just a lad, we would
make a trip every year and spend a few weeks in a small (pop. 5,000)
rural town. My grandparents on my mom’s and dad’s side
were farmers. They had cows for milking and eating, they had some
chickens running around that were available for any Sunday dinner and
some in a coop where we would go and collect eggs to eat.
They
had enormous gardens and fruit trees that produced enough food to eat
during the summer, and then they canned the extra to eat during the
winter. I do not recall ever going to the grocery store at any time
during my youth while living out on the farm.
Many
years later, my parents retired and moved back to Idaho. This would
have been in the 1980s. The first time I went to visit them they
needed to go to the grocery store. At the time I was living in the
Phoenix area, and we had these big grocery stores with great
selections and a lot of competition that kept the prices reasonable.
So
when I went with my parents to the only grocery store in the town I
was stunned. Shelves were only half filled, and the selection was
minimal — if they had what you were looking for in the first
place.
Then
we went to the produce section, which I had anticipated would be
great with all the farmers in the area. Instead it was less than
pleasing to the eye. Selection was pitiful, and much of the produce
was past its ripe stage.
Then
it was on to the meat counter. Let’s just say that I was glad
we were not getting any of the meat that was being offered that day.
And the smell.
To
make the experience complete, the prices were much higher than what I
was used to in Arizona. This
was the reality of small town USA. The grocery store was doing all
they could to provide a service to the community, but it just was a
mediocre buying experience.
Then
came along a man named Walton. Sam — not John Boy.
Wal-Mart
decided they were putting in a small (for them) store that would
include a grocery store only 5 to 7 miles from my parents’
home.
The
store had fresh produce, meat, a decent selection, and milk that was
actually under the expiration date. And all for much less cost than
the small store in town. My parents would still go buy a few items
at the local store just to help support the owners, but it was not
long before the local store closed because they could not compete
with the big box store.
So
many people criticize Wal-Mart. They destroy the local merchants.
They kill jobs. But for many people who live out in remote areas of
the country, Wal-Mart was a relief from the mediocrity people lived
with all their lives. Wal-Mart brought low prices that allowed them
to extend their money and live better lives.
Remember
the movie You’ve Got Mail. The big mean big box book
seller (Barnes & Noble, Borders) comes to town and puts the small
book store out of business. They make Meg Ryan (cute, idealistic)
the victim of this horrible slaughter.
Whenever
I see that movie I always think of the people that could not afford
to buy the books she was selling because she was charging too much
money. Just like the grocery store in Idaho, Meg charged too much
and the selection was terrible.
In
that movie, the big box book store was the villain. Now, the big box
book stores are going away. Amazon is just destroying them with
better prices and almost unlimited selection.
I
have to admit that this one hurts me and my family. We used to love
to spend an entire evening down at Barnes & Noble, just browsing
the different sections and sitting in those nice big chairs they used
to have and sampling tons of books and buying too many. But somebody
else has found a way to sell a wider selection at a cheaper cost.
“The king is dead, long live the king,” I guess.
Wal-Mart
looks invincible but they too will someday be vanquished. E-commerce
most likely. When Wal-Mart is gone, so many of those people that do
nothing but complain about the big box stores will reminisce about
how there were these huge stores with lots of people in them and when
you were in them it just felt like you were part of a community and
you could just feel the vibrancy during the Christmas holidays
(forgetting the stuff Wal-Mart puts in the aisles making it hard to
get around and the terrible customer service).
This
is just the free market. Creative destruction. People try to hold on
the past and cry about the evils the new world will bring. Mom and
pop stores > Big Box Stores >
E-Commerce > ?
The
next time you hear someone complain about the big box stores, just
remember that for many of those complaining these will be the good
old days.
Adam Smith is obviously not the actual name of the author of this column. The real author has
worked for two Fortune 500 companies, one privately held company, and a public accounting
firm. His undergraduate degree was in accounting, and he earned an MBA for his graduate
degree. He also has completed coursework for a PhD. in finance. He continues to be employed
by one of the Fortune 500 companies.
The author grew up in the Washington D.C. area but also lived for several years in Arizona. He
currently resides with his family on the East Coast.
The author has held various callings in The Church of Jesus Christ of Latter-day Saints.