The National Grocer’s Association (N.G.A.), whose members have largely taken the brunt of Wal-Mart’s movement into the superstore/grocery business, has written to its members this month to announce its “Campaign to Preserve Competition and Consumer Choice.” The N.G.A. criticizes local governments for subsidizing Wal-Mart’s expansion with public subsidies. According to an N.G.A. letter to its members, “American consumers have benefited from the most diverse food distribution system in the world, and independent community-focused retailers and wholesalers have historically been the cornerstone of that diversity, providing variety, selection, competitive prices, and value for the consumer. N.G.A., through its “Campaign to Preserve Competition and Consumer Choice”, is committed to a level playing field — one that preserves competition and consumer choice. In keeping with the goals of the Campaign N.G.A has created a “regional snapshot” of the continued market saturation by Wal-Mart. In the remainder of 2005 and during 2006 Wal-Mart plans to add 380 Supercenters, 57 Sam’s Club Stores, 11 Neighborhood Markets, and 39 Traditional Discount Stores to its portfolio of 3,809 U.S. stores. The states with the largest Supercenter expansion plans include Texas with 31 stores, Ohio 30 stores, Florida 28 and finally California with 19 planned Supercenters. This enormous growth supports Wal-Mart’s plans to “saturate” the market area including Oklahoma City where they have intentionally placed Supercenters 5 miles apart and Neighborhood Markets are placed 2 miles away (Wharton “The Wal-Mart Empire). This market saturation continues throughout the United States. A large portion of Wal-Mart’s ambitious growth is being fueled by state and local subsidies, which the company uses to expand into many areas already supported by successful independent businesses, especially independent grocers. Ironically, the tax dollars given to Wal-Mart, which had sales of over $288 billion and profits in excess of $10 billion last year, will in effect be used to the competitive disadvantage of independent and regional grocers. Localities are, in effect, financing the nation’s largest retailer to the disadvantage of the independent business owners in their towns and cities. Left unchecked Wal-Mart will continue to grow and saturate the marketplace to a point where their only competitor will be themselves, and consumers will pay the price. N.G.A. encourages you to support our “Campaign to Preserve Competition and Consumer Choice.” The Campaign will need to adapt its programs and services to meet the ever changing needs of the members as they fight to level the playing field with supercenters in their towns and communities. These programs and services may include media support, legal aspects, increased funding, research, and grassroots advocacy.”
For more information on the N.G.A. campaign contact N.G.A. at [email protected]
