How large retailers can be neighborly (Chicago Tribune, 25 Jun 2006, Page 7)

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How large retailers can be neighborly
By Annette Bernhardt and Nik Theodore
Chicago Tribune
25 Jun 2006


Across the country, communities are exploring ways to bring dignity and economic security to lowwage workers and their families. Chicago is right in the mix, considering a law that would require large retailers to pay their employees a living wage and health benefits.



But sadly, Wal-Mart has chosen to resort to scare tactics, threatening that it and other retailers would pull the plug on future expansion in the city if the law passes. That’s both disingenuous and disrespectful of the city and its residents.



The truth is that Wal-Mart and other large retailers absolutely need Chicago. Having built up in rural areas and suburbs to the point of overcapacity and stagnant sales, retailers are now hungrily eyeing cities. Finding new, untapped markets is the lifeblood of survival in the industry, and so it’s no surprise that business analysts are seeing a rush to open urban stores, what they’re calling the “final frontier of American retailing.” Space and labor costs may be higher in cities, but the experience of forerunners like Walgreens shows that urban stores often end up being even more profitable than suburban ones, because of high sales volume and concentrated buying power.



Chicago is the poster child for this expansion opportunity. Initiative for a Competitive Inner City, a leading think tank on local economic development, has studied Chicago and identified retail as one of four core industries for revitalizing the local economy and boosting employment and personal income. It estimated that innercity Chicago represents more than $5 billion in annual... read more...