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The Wal-Mart Supercenter that opened in Bechtelsville (Colebrookdale Township) on Oct. 26 did so in light of ill publicity that has been cast on the corporation as of late. An independent film criticizing the big-box store is set
for release, anti-Wal-Mart Web sites become more frequent, and an internal memo suggesting ways to cut Wal-Mart employee benefit costs has made headlines.
This all then begs the question: Is Wal-Mart good for Boyertown?
It depends who you speak to, but no matter who you pose the question upon, the answer is always sure to be relative.
Many say yes. Many say no. And many do not know.
Repeated attempts to contact Wal-Mart were unsuccessful, but the store's Web site, www.walmartfacts.com, provides information about the national retailer.
In 2005, Wal-Mart Stores Inc. projects it will create more than 100,000 new U.S. jobs, compared to 83,000 created last year. An independent study found that Wal-Mart saved each American household on average $2,329 in 2004.
Wal-Mart Stores Inc. is the world's largest retailer, which netted $285 billion in sales at the end of the fiscal year in January 2005, according to the Web site. In addition to Wal-Mart and Wal-Mart Supercenter, there are Sam's Club and Neighborhood Market grocery stores. The company employs 1.6 million associates worldwide through more than 3,600 facilities in the country and more than 2,300 units in countries like Argentina and South Korea, cites the Web site.
And it is looking to get bigger. In the next fiscal year, starting in February, Wal-Mart Inc. plans to open 30 to 40 Sam's Club warehouse stores and 15 to 20 of its smaller Neighborhood Market stores, according to the site. Its international unit plans 220 to 330 new stores. This adds up to more than 60 million square feet to its total retail space, which is an increase of more than 8 percent.
Wal-Mart has been attempting to counter the recent surge in criticism by experimenting with environmentally friendly stores and changing its pay structure, said its Web site. At the end of last month, Wal-Mart announced that energy efficiency and renewable energy, such as roof solar panels, are part of the corporation's main objectives for its U.S. stores. Wal-Mart Chief Executive Officer Lee Scott said over the next three years he wants to get 100 percent of its energy from renewable sources, cut energy use in stores by 30 percent and cut fuel consumption in its truck fleet by 25, the site stated.
Despite Wal-Mart's facts, many people and organizations don't subscribe to it. One of Wal-Mart's biggest critics is Co-Op America - a 23-year-old not-for-profit membership organization that promotes social and environmental friendly consumerism - who wants consumers to pledge they will not shop at the national retailer this holiday season.
Eric Gorman, program director at Co-op America (www.coopamerica.org), said in a press release, "Wal-Mart continues to pay its workers less than a living wage, which makes it necessary for the United States government to spend $1.5 billion in federal tax dollars providing basic needs like food stamps and public housing to Wal-Mart employees.
"The company also continues to build and build with an estimated 3,131 Supercenters by 2010, creating more suburban sprawl and displacing local grocery stores and other businesses across the country. Consumers across the country are concerned about the impact that Wal-Mart is having on their community and we're giving them a way to take action and have their voice heard."
Todd Larsen, managing director for Co-Op, points to an internal memo recently drawing scrutiny which was sent to the Wal-Mart Stores Inc. board proposing numerous ways to hold down health care and benefit costs. The memo, sent by Wal-Mart's executive vice president for benefits, recommends reducing 401(K) pension contributions and attracting younger workers to replace senior employees.
"If you're working full time at Wal-Mart, you're basically going to be on the border of poverty," Larsen said. "If that's the case, a large percentage of their employees aren't making it."
Larsen suggests that consumers "remain loyal" and "make a point" to shop at independent businesses in their community. "They know how to give people what they need...and go out of the way for their customers," he said.
Since the arrival of the Wal-Mart Supercenter in Colebrookdale Township, there have been a "few calls" of retail theft and traffic problems, according to township police chief Larry Mauger. "Overall, for just opening, it's okay," he said.
Mauger said he has been preparing for the store by speaking to other police departments in Wal-Mart communities and is expecting an influx in calls. "We're just going to have to wait and see," he said.
In 2004, Wal-Mart collected more than $11.2 billion in state and local sales taxes for communities, according to its Web site. The Boyertown Area School District is hoping these figures follow suit.
"We're very excited about Wal-Mart coming into the community," district business manager David Szablowski said. "They (Wal-Mart) took a piece of low-assessed property and turned it into a very valuable piece of property."
The full assessment will be ready for the district's 2006-07 budget, when the scope of the tax revenue will be clearer, which has already been realized, according to Szablowski. "We don't have the final figures on the assessment of the property since it is so new, but it's bound to bring a higher assessment and therefore more taxes."
More taxes equals more available spending for students and less money from district taxpayers' pockets. With more commercial property, "there is less share of district finances (residents) have to pick up in their tax bill," Szablowski said.
The business manager gave the example of a $200,000 assessed property that pays $3,900 in property taxes with two students. Since it costs the district $7,500 to educate a student, that property's taxes would not cover the $16,000 in student spending. However, hypothetically, if Wal-Mart's property is valued at $5 million, then it would generate $98,150 for the school district, according to Szablowski.
"From a school district standpoint, anytime we can bring in a property that has a fairly high assessment and there's no kids being produced from that property, it's pretty exciting," Szablowski said.
The potential employment boom from Wal-Mart is also a potential fiscal boom - contingent upon that many of Wal-Mart employees live in the school district, said Szablowski.
"Wal-Mart has had positive impacts as far as employment opportunity, and there are lot of positives from that," Szablowski said. "From the school district standpoint, we get people working and, of course, then the earned income tax...that would be reflected and increase earned income tax revenue and also from an occupational privilege (tax) standpoint."
Said Szablowski: "We're hoping many more commercial businesses move in to support the houses and the residences that are being created in Boyertown, and it should just make the community that much better."
Next week: Big box vs. local business. Area business owners respond to the Wal-Mart Supercenter as they brace themselves for what many believe will change the small-town landscape of the Boyertown area.
Please send any comments to ajenkins@berksmontnews.com.
