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News :: Urban Development
New Walmart To Spark Sprawl On Urbana's East Side Current rating: 0
31 Dec 2003
According to a report in today's (31 Dec. 2003) Champaign News-Gazette, Walmart is confirmed as the anchor store in a vast new development in a cornfield at the Urbana city limits.

The News-Gazette confirmed "one of those worst-kept secrets" in Champaign County by frontpaging the story today (31 Dec. 2003), saying that Walmart will construct its third store in the metropolitan area in the cornfields at Urbana's rural eastern edge. Left unmentioned in the N-G story was the character of this potential Urbana business, a mega-corp recently implicated in immigration-law-violations, as well as numerous charges of unfair and exploitative labor practices.

Bypassing Urbana's blighted, but high traffic count, Sunnycrest shopping area on South Philo Road, a development plat has been submitted to city officials detailing SpraWlmart's 24-acre store plan. SpraWlmart's new store will be part of a larger, 74-acre scheme to pave rural areas, instead of recycling neighborhoods and prior city infrastructure improvements by redeveloping Sunnycrest.
The News-Gazette story by Mike Monson read as little more than corporate puffery, with no apparent attempt to contact anyone in Urbana who might be critical of the plan. This is rather ironic in light of the News-Gazette's constant, years-long editorial chant about Urbana being "anti-business." Either they no longer believe their own stubbornly ignorant assertions (perhaps meaning N-G readers will no longer have to listen to such whining from the west side of Wright St.) or they are simply hoping that no one recognizes their slanted reporting and call them on it.

It is unclear how much support SpraWlmart has in Urbana. Some city officials boost it as a way to replace lost sales tax revenue, but it is uncertain if the mega-center will actually add enough revenue to makes up for its increased drain on tax-payer resources. Some city council members have noted they won't oppose SpraWlmart's coming to town, but also insist that the Arkansas-based, union-busting mega-corp will have to pay its own way.

And it will cost.

SpraWlmart is known for taking a tough stance on shoplifters, which has resulted in large increases in calls for assistance to the Champaign County Sheriff's office since the Savoy SpraWlmart opened. Thus, increased calls can be expected for the Urbana Police if an Urbana SpraWlmart opens. The same can be said for fire calls. The closest fire station will be the one in the City Building, about three-and-a-half miles from the proposed SpraWlmart. A shift in fire calls to the mega-store may mean that citizens near Urbana's downtown may sometimes see the excellent response time currently provided by UFD decline, if equipment happens to be busy on the far east side of town.

Fronting on the proposed SpraWlmart site is Illinois Route 130, a two-lane highway, as are all other roads nearby. There is one traffic signal on 130, serving the new post office (its location still a sore point with the high percentage of community residents that don't have access to a car to access the PO) across from the site. It is likely that the road will have to be rebuilt to four lanes and another signalled access point to this development will also be required. At the intersection of East Washington and 130, yet another signal will be needed for safety reasons. And I hardly need to mention how badly East Washington beyond South Dodson Drive to 130 needs to be improved, even for the traffic it already bears.

Improvement in roadway infrastructure is a cost that SpraWlmart should bear, given that it is already substantially available at the alternative Sunnycrest site. While a few road improvements have been made near the proposed site in the urban edge environment in the approximately twenty years since the Illinois 130 bypass project was completed on Urbana's east side, the increased traffic from SpraWlmart will probably spark additional demands on tax-payer resources in future years, unless SpraWlmart commits to paying its own way.

Another question is mass transit for the many local residents who rely on public transportation. Extending a bus route to the new SpraWlmart will add expenses and new equipment needs for the CU Mass Transit District. However, one potential plus to the site is the fact that it lies along the old Conrail right-of-way that goes by MTD headquarters, lining up with the proposed light-rail/fixed-guideway project. Unfortunately, this worthy solution is years away, at best, so a bus route extension will be required for the time being. Or will this be like many such new developments, purposely designed as one that is entirely lacking in public transit so that SpraWlmart hopes that it is inconvenient to what it sees as the “wrong element” to get to its store.

Even assuming that SpraWlmart doesn't get any direct handouts along the way, it is still unclear if SpraWlmart will actually contribute to any net increase in the local economy. SpraWlmart is famous for driving local business out of business and then offering even lower-paying jobs to those whose jobs it displaces.

Beyond that, the low wage, non-union jobs at SpraWlmart mean that employees typically don't earn enough to invest in housing. The low wages paid often attract younger workers, who typically result in increased demands on local public services, including on the public schools, even while they make relatively limited contributions to the tax base. This is already a problem for Urbana, with the mostly uncompensated impact of the University of Illinois. And it's not that Urbana doesn't welcome young people. Most of us can even remember being that young, but it's a fact that this does increase costs to local taxpayers.

A cost that is hard to calculate, but nonetheless real, is the project's impact on the environment. Adding such a large amount of paved area will disrupt drainage patterns unless this is specifically addressed in the plan. This rural area could be transformed into another inconvenient urban zone, over-run with pollution-spewing cars and unfriendly to pedestrians and bikes, unless these issues are addressed right up front. The mess that is North Prospect need not be repeated, if SpraWlmart is met with hard questions about what the future holds.

Some people in the area may value the closer shopping the new store will provide, but far more people will probably wish that SpraWlmart had not disrupted their quiet existence on the city's fringes. What is all the more disgusting is that Urbana has other areas in town that could accommodate SpraWlmart, like Sunnycrest, crying out to be reused. Major public investments have just been made in the North US Route 45 corridor, an area which makes more sense for such retail developments as far as easy access, unless SpraWlmart already has big plans afoot for even more roads on Urbana's east side than I've already cited above.

And the value of the farmland removed from production is a loss that will be regretted even more in the future. There seems to be little in the way of planning for public green space (sorry, but Stone Creek and T.K. Wendl's do NOT qualify) in the area, something which requires foresight now or an even more substantial public investment when the need is realized in the future.

It is hoped that the News-Gazette will do a more balanced job in future reporting when looking at the pros and cons of SpraWlmart coming to Urbana.

Those concerned about this proposal should note two upcoming meetings. The first is a review by the Urbana Plan Commission on Thursday, 8 Jan. 2004. Then the SpraWlmart plan will be presented to the City Council on Tuesday, 20 Jan. 2004. While the tax implications and demands for increased public services may appear at first to be beneficial, they also need to be demonstrated as a positive public benefit by hard facts and clear plans going into this whole affair, not just speculated on by over-enthusiastic Chamber of Commerce-types.

And most of all, SpraWlmart should pay its own way, whatever happens. Champaign may be in the habit of giving away tax breaks to any business with its hand out, but such largess has no place in Urbana.
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Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 4
31 Dec 2003
Modified: 11:54:03 PM
Congrats to Urbana. They actually attracted a business that was not in anyway connected to government. Is the ice melting? How are you folks going to deal with the non-union labor which will put the building up? Will you drive a bulldozer into the complex like you did in Savoy? Ricky, could you help us out here?

What about a living wage??? Is'nt there some way to discourage this capitalistic business from locating here? Perhaps the environmentalist lobby could invent something such as the "prarie weasel snake wobbler" which, of course will be endangered to prevent the construction. It would not be the first time you folks used psuedo science to achieve your objective. All the while, you prevent people who want a job the ability to find one. Is this so they become more dependent upon the welfare state? Naturally, this is liberalism at it's finest. Again Congrats to the Mayor and the "anti-war" city council for finally seeing a business enter the town.

Jack
Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 0
01 Jan 2004
I'm surprised I haven't seen any comment on the relationship between the property owner selling farmland to WalMart (Wilmer Otto), and one of the Urbana City Council members who approved the zoning change (Milton Otto). They are father and son.

To be fair, the zoning change was not really a vote "for" WalMart, but a decision to be made regardless. However, it was certainly understood at the time what the result would be of a 'yes' vote.
Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 1
01 Jan 2004
Ah nuts. I should do more research first. Milton indeed recused himself from the vote. Oh well.
Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 1
01 Jan 2004
Of course most of the people who oppose Walmart building in Urbana are the same ones who favor raising property taxes for the already burden Urbana home owners.
Tax and spend, tax and spend... you people make me sick! TA
Urbana's Taxes
Current rating: -1
01 Jan 2004
Modified: 12:43:33 PM
I'll put my somewhat hazy memory up against TA's knee-jerk reaction on this one. Last I remember hearing about Urbana's property tax rate was a couple of years back, when it was dropped 2 cents per hundred so that it matched the City of Champaign's rate. This was done under the current council line-up.

Once again, I beleive TA has engaged mouth before activating brain, but I sense he is a regular News-Gazette reader who perhaps has been led astray by their biased reporting on Urbana.
Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 1
01 Jan 2004
Modified: 12:44:34 PM
Good analysis ML -- you raise many important points on the possible impact of this superstore on our local economy. I would love to see the evidence utilized by our city council to approve the store. Given that Walmart has an egregious labor record, horrible safety violations, blatant sexism, and racist employment systems, I can only assume that those making the decision to invite Walmart to Urbana have access to information that somehow supercedes all these problems.

As for the so-called tax benefits of this corporation, people like economics professor Kenneth Stone have been tracking Walmart's impact on local businesses. Professor Stone found that while overall transactions in "host towns" increased over a 10-year period, these same towns "lost an average of 4% of total sales" -- thus, people buy things more often, they are paying less for them; thus, the actual sales tax base _decreases_ for the towns in which Walmart resides. This phenomenon will put more pressure on these same towns to raise tax revenue through outlets like property taxes.

Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 0
01 Jan 2004
Modified: 05:07:10 PM
www.walmartwatch.com

@%<
Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 0
01 Jan 2004
Dear Anon,

I hear the job for the Walmart "Greeter" may be open. Good Luck.

Jack
Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 0
01 Jan 2004
Modified: 07:52:33 PM
I am absolutely thrilled to see this happening! As an east Urbana resident, I am tired of having to commute as far to the other side of the twin cities as you can get (North Prospect) to shop. I have never understood the lack of retail development in Urbana. Is Champaign really offering that much better incentive to businesses? Urbana does have development but it all seems to be residential. That leads me to believe that the city can make more money off of residential. Admittedly, I do not have the numbers to back up this suspicion. In the five years I have lived here I have seen property taxes continue to go up, no offense Real American but I don't think your information is factual, or perhaps they reassessed our property values to offset any actual loss of income to the city and that's why I didn't notice.
Re: Taxes
Current rating: 0
01 Jan 2004
JW,
It should be pointed out that I was only speaking of the City of Urbana's portion of your property tax bill. Since TA wanted to paint with a broad brush what he either doesn't understand or that he wishes to distort, I confined my reply to that which he specifically addressed. I believe that I am correct on the portion going to the City of Urbana.

But property taxes have many parts. There's school taxes and county taxes that are also part of the total property tax bill. If your property or that which is nearby appreciates, your property taxes will also rise, even if the rate doesn't change. I know my property taxes have gone up most years here, but blaming the city of Urbana for all of that as TA does is just erroneous.
Taxes
Current rating: 0
01 Jan 2004
OK, I wasn't considering the breakdown. Thanks for the enlightenment RA.
Re: Taxes
Current rating: 0
01 Jan 2004
Modified: 10:05:57 PM
As I recall, Urbana's property tax rate is the same as Champaign's. I compared all of the rates between the Urbana and Champaign property tax bills in the last year or so. Without question, the party responsible for Urbana's "high" property taxes is the Urbana School District. I don't remember the rates anymore, but nearly the entire difference between the two cities is due to their levy.

You may also recall the Urbana School District trying to spend money they didn't have last year on new building, when they were already in deficit on other building projects. They actually complained that the city wasn't giving them huge chunks of money for new building projects, and tried to villify the city for not doing so. It was almost as if they had forgotten that they have their own levy, and that it is *way* higher than the city portion. The school's levy is about 50% of your tax bill. The rest is split between many taxing bodies, including the city, county, township, library, park district, MTD, etc.

This is also the same school district that wants to tear down all of the homes between Washington, Race, Vine and the high school. Guess what that does? It reduces their property tax intake (as well as every other taxing body). Makes sense, right? Create more empty fields around the high school to build stuff on that they can't afford, while ensuring their income is lower at the same time. Smart, indeed.

Hopefully we'll see some changes now that the former school board president is gone.

As for assessments, they go up here, but they go up everywhere else too.

Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 0
02 Jan 2004
When my house payments go up I could care less what tax is being raised. My point Real American dumb ass is that my property taxes went up. I can paint with whatever size brush I want! My point stands... property taxes in Urbana are too high and hopefully some businesses will lower that. (dumbass)
TA
TA And JW
Current rating: 0
02 Jan 2004
I understand what both of you are saying. Over the past 15 years I have been charting my property taxes and they have gone up 8 times. Only once have they gone down but the following year they went back up. Hopefully some business will help our problem.
TA's Difficulties With Cause And Effect
Current rating: 7
02 Jan 2004
TA again demonstrates why it is hard for intelligent people to take anything he says seriously -- his total failure to grasp the basics of cause and effect. Since he is one of those who sees no problem with starting a war based on false premises -- i.e. non-existent WMDs as a reason to attack Iraq -- it should be no surprise that he applies the same flaky reasoning to more local issues. Thus he says it is irrelevant that the city of Urbana has not raised taxes, like he stated, when he intends to attack the city council in any case, despite his factual inability to sustain such a charge.

And he wonders why people on this website have such a problem with those who are factually challenged, like him?
Real American
Current rating: -2
02 Jan 2004
What the hell are you talking about? Get your head out of your ass for one minute would you please? I have seen my property taxes go up several times in the past 2 decades while my property value has only gone up slightly (actually it has increased a total of 3 times in the past 20 years). What fact do you want asswhipe? Do you want to see my damn mortage? Do you want to see my house payments? What the hell do WMD have to do with the taxes in Urbana? Are you on drugs? Will you share some?
When I stated I didn't care which tax was being raised only my payments were going up I mean I didn't care if it was for the schools, roads, bridges, or to keep Liberal assholes on the council. My concern is that my taxes went up. Christ allmighty, do I have to explain everything in simple terms for you to understand? Do have any sort of education? Use your damn brain once in awhile and quit over analyzing everything someone says. I swear, your worse than Anon... Maybe you are Anon. If so, GET A FUCKING CLUE!!! TA
OK, Now I Get It, Suggested Disclaimer
Current rating: 3
02 Jan 2004
TA,
I think I understand you now. If you mention something that appears to be a fact, mixed in with your opinion, no one should make the mistake of assuming the fact has anything to do with your argument.

In that case, I suggest you post the following disclaimer with every one of your postings:

DISCLAIMER: The following material is offered only as an opinion. Anything that appears to be a fact that I state should not be assumed to actually have any relevance to my opinion. Anyone assuming that I have any facts to back up my opinion should do so at the risk of my calling you a dumbass for presuming to believe that the facts matter to me.
Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 0
02 Jan 2004
LMAO!, Real American, about the "disclaimer". Excellent post; you've got me laughing out loud! Thanks.
Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 0
02 Jan 2004
The Jack Ryan wannabe strikes again. TA, Keep up the good fight, you have gotten under their tatooed skin.

As for WalMart, you guys in Urbana finally attract a taxable body and immediately fight to keep it out.

To the WalMart leadership: If you do come to Urbana, you must realize that the 2 to 3 percent who follow Dennis Kucinich and Ralph Nader nationally represent about 60 percent of population in Urbana. They are easy to spot, as they are usually in some sort of protest line or picking up some sort of government check and relying on the efforts of others.

The most they will buy in your stores is a business suit for their interview at some liberal university who claims to want diversity when all they really want is leftist of many colors and sexual orientations.

Your Friend and Fellow Capitalist,

Jack
Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 8
03 Jan 2004
Modified: 12:38:00 PM
Something to remember is that unchecked sprawl means loss of farm income for someone; a large percentage of farmland is leased and not owned by the farmer, putting them at a disadvantage if the owner decides to sell it. Also, it costs considerably more for a community to develop land as sprawl than it does to maintain it as farmland or open space (http://www.ers.usda.gov/publications/aer803/). And once that land is paved, it can't ever be put back into agricultural production; all topsoil will be removed prior to construction, and a lot of it will be lost in the process.

The most common soil type in Champaign county is Drummer soil, which can have a topsoil depth of up to 19 inches (including the A horizon and the upper part of the B horizon - see http://ortho.ftw.nrcs.usda.gov/osd/dat/D/DRUMMER.html). that ends up being 5,093,035 cubic feet of topsoil over 74 acres (1.58 x 43560 x 74). Topsoil can be replaced, but only after tens of thousands of years, and only under the right conditions; prairie plants aided in Drummer soil development, but they don't grow in asphalt.




Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 1
03 Jan 2004
Dear Babs,

Actually, the only person who must make the decision on the particular economics of whether or not the land is more productive and profitable for farming is the "owner" of the property. This person made his choice to sell his own property and have in turned into retail space. It is not the business of disinterested parties to determine what is done with this property.

I suggest that if you would like to see this land continued as farm land, than perhaps you should pony up the bucks and buy it.

Jack
Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 3
03 Jan 2004
Modified: 05:20:31 PM

That every WalMart hurts/harms the area they land in, is undisputable. The only person that benefits, is Sam Walton Jr.

I can already find bargain-basement polyester pants in a dozen stores in town, including dirt-cheap versions at any of our handy "vintage" stores.

Why, except that it will by-design give WallyWorld a monopoly on the selling of certain/most goods, does CU need more than one WalMart! We need three!? Give me a break!

And if the new WalMart sells pizza and beer, it'll also mean the crippling or death of the two or three large grocery stores in Urbana.

We're going to wake up folks, and there won't be anywhere else to shop. That's hardly a "benefit", in my book.

Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 0
05 Jan 2004
Dear Anti-Jack,

How many people does Wal Mart employ nationally? There is no where else to shop in Urbana, you have already chased all the business away. BTW, stay away from open flames when your wearing that polyester, dude.

Jack
Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: -1
08 Jan 2004
Yes, what Urbana has always needed to "make things better", is its own WalMart! 'Cause the other two just won't do. Now the economic problems are cured!

I'm a transplant (from the early 90's), but was asking a native Urbana-ite one time, what a good "slogan" for Urbana might be.

After a long pause, he said "Urbana - We're not Champaign!" Priceless, and genuinely funny on many levels.

If only Urbana could have its own North-Prospect, then they'd move out of the stone ages finally! More "retail" is the solution for every community's woes. I thought you knew.

Your friend,
The Real Jack
Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: -5
08 Jan 2004
Well, Not everyone feels as you do anti-Jack. Some people (like me) don't enjoy driving over to North Prospect to buy school supplies or asswipe (Onion).
Now all we need is a Hooters in Urbana and we'll be set. TA
Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 13
08 Jan 2004

Who would drive up to North Prospect to get school supplies now? You can get all the school supplies you want between campustown (TIS, IUB, Folletts) and Schnuck's already. If you're after more esoteric art supplies, there's Art Coop right on Green.

That said, I was just at the planning commission meeting tonight, and the room was packed with people who all spoke against the proposed plat. Quite a few of them digressed into comments about Wal-Mart in particular, but there was plenty of sentiment against having big box retail there generally. Many of those who are against the plat live near the property and are worried about drainage and excess light pollution problems, while others (myself included) simply feel that we'd be better off with business developing elsewhere - either reuse existing abandoned commercial sites, or if that is not feasible, stick with the ORIGINAL big business/strip mall plan for the Farm'n'Fleet area. There is no sense having two - a single development will allow economies of scale in extending the various services a development like that is going to need.

It is true that the owner of the land is free to sell to whomever he wishes. However, the buyer must conform to the zoning and plat for the land. If the city doesn't wish to see big box retail on that location, they don't need to zone or plat for such use. They cannot say "No Wal-Mart," but they certainly can say "no big box retail AT THIS TIME."

They have currently changed the zoning from industrial to commercial (B-3, I believe). Several people expressed wishes to have it rezoned. The plat is not yet approved - it seems the main technical issue is one of drainage. If the plat is not approved, Wal-Mart (or similar sized stores) would be unable to go in. As far as I've heard, there are no other interested parties. The plat calls for breaking the land into 7 parcels (some of them quite odd shaped) but only developing the parcel that Wal-Mart is interested in.

In better news, apparently Bergner's has finally given up sitting on their lease in Lincoln Square. Woo hoo!

Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 0
09 Jan 2004
With regard to the tax rates being equal...having owned houses in both cities, it was obvious to me that the taxes were much higher in Urbana. The tax rate is kept about the same, but Urbana seems to assess property at a much higher value than comparable Champaign properties.

You can complain all you want about mega-corporations, but like it or not, the days of small ma-and-pa shops are over. I find it rather annoying that I have to drive all the way to North Prospect (or Savoy) in order to access a Menard's, Lowe's, Staple's, Wal-Mart, Target, Circuit City, Sam's Club, movie theatres...the list could go on and on.

For whatever reason, Urbana rarely attracts large businesses and has an even harder time keeping them. I hope the new Wal-Mart is quite successful so Urbana can experience some economic growth without having to re-assess my house again.
The Goose That Laid the Golden Egg
Current rating: 2
09 Jan 2004
CU Citizen raises an interesting point. Like many WalMart boosters, he sees the mega-corp as an unmitigated blessing, a cash cow, or "we're in the money" if it lands in Urbana. All I can say is, "Prove it."

There are many good reasons to oppose Walmart. But gut-level feelings about the evils of big box stores only go so far. My article focused on a number of unanswered questions, most of which come down to what conservatives like to call "the bottom line" -- will Urbana REALLY be money ahead by playing host to WalMart? Until the questions I raised are answered with hard facts, it is very uncertain that Urbana will take in more in sales taxes from WalMart than it will lose in infrastructure and service demands created by its presence in an area of town that lacks most of the needed infrastructure and is on the fringe of Urbana's service area.

Is WalMart the Goose that will lay Urbana's Golden Egg? Or is this just a fairy tale, where Urbana puts out big money upfront and finds out that the "Golden Eggs" are just regular ones, spary-painted with the cheapest faux gold color that WalMart could find in its bottomless bargain pit?

If Urbana is expected to put out hard cash, which it will HAVE to by allowing WalMart to clone itself in the undeveloped wilds of East Urbana, instead of the more sensible, already well-served and infrastructured North 45 corridor, then that case has to be made in hard dollars and cents, not based on unquestioning Chamber of Commerce booterism, but rather on a hard-nosed business case where Urbana's citizen's can see exactly which year they will come out ahead for the required investment of taxpayer dollars. So far, nothing but vague wishes have emerged of the required business case.

WalMart, like most other corporations, will always try to externalize as much of its social cost as possible. WalMart, no doubt, has a hard-nosed business plan for how it expects to make money in Urbana. When Urbana city staff presents an equally hard-nosed and realistic business case of when and how WalMart will begin to benefit Urbana's finances, rather than representing a drain on them, then Urbana should move forward -- not one second sooner.

And there is one thing that is CERTAIN about whatever that case may be -- it will be YEARS longer to payoff for a undeveloped site at 130 and 150 than it will be for a site on the already-developed North 45 corridor. What the public needs to hear is WHY Urbana should make a whole new series of investments that duplicate those just made on North 45. So far, there has been no evidence to support an East Urbana site, other than that's what WalMart wants -- and that's just not a good enough business case for the City of Urbana to support.
Why WalMart in Urbana, anyway?
Current rating: 11
09 Jan 2004

People find it so much of a hassle to drive "all the way" to N. Prospect to go to a Menard's, a Lowe's, a Meijer? Well, I hate to be the one to break it to you, but stores of that size are designed to serve markets of (drum roll please...) 500,000 people. Yes, you heard me right. That is more people than live in the CU metro area, because they hope to suck in people from Bloomington and Danville.

What that means is, they're not designed to be built on every street corner or every intersection of state highways. When they build that close, they cannibalize their own business. So then, why DOES WalMart want to build a store out on High Cross Road?

Of course Wal-Mart can afford to cannibalize their own business, because they are the largest corporation in the United States. You will notice that there is NOT a second Meijer's in the area. Why? Contrary to popular folklore, it wasn't Urbana that "kicked them out" - just like the WalMart plan, once a site is zoned for big box stores, the city cannot deny a particular tenant - but because the company realized that they would be cannibalizing the N. Prospect store, and it would be more profitable to try and break into the Chicago market, which is virgin territory for them.

Current big-box retail strategy has nothing to do with serving markets. Rather, the game (for all chains, not only WalMart) is all about maximizing market share under conditions of retail glut. We have a serious oversupply problem - put bluntly, in an economy built around mass consumption, there are too many products for sale.

With everyone consuming completely freely, no limits to speak of, there is too much stuff. Demand is satiated. Naturally, companies are desperately trying to spark additional demand, which is why you see advertising plastered on every conceivable surface and blasting from every broadcast outlet, but it is not enough. Not all the stuff will be bought.

The rational decision for any given chain is, therefore, to try and make sure that THEY are not the chain that is left holding the bag of unsold goods. How do they do this? There are a few basic ways:

  • price competition - undersell the other competitors
  • competition elimination - buy or combine with the big ones, kill the little ones
  • gain weight and clout - create "chains of chains" that can keep competitors out of given locations
The major strategy is one of price competition. In order to undersell the competition while still raking in profits, they need to reduce the cost per item (as well as the overhead for running the store). How to do that? Again, a few main ways:
  • outsource labor to cheap foreign countries
  • pressure any remaining local suppliers to cut prices or lose contract (mainly this is WalMart, they are the only place large enough)
  • make the goods shoddier - bonus is you need to buy more often!
  • automate, automate, automate - requiring larger factory lines
  • expand the size of both the factories and the stores to get economies of scale
The last one is the particularly problematic one - because, of course, increasing the size of the factory runs so that each individual item is cheaper only serves to exacerbate the oversupply problem that is driving the whole mess. Added to that, of course, is the long term problem that outsourcing all the goods abroad, and the accompanying decrease in better jobs and wages, might eventually DEPRESS demand - becoming a break on consumption.

Yep, it's a quite beautiful example of a vicious cycle.

We are seeing these steps implemented in sprawl strip malls across the US. The market share battle is on. WalMart, being the largest corporation in the US, can afford to cannibalize itself in the fight to get the brass ring. That is why they are willing to have three (count 'em folks, THREE) WalMarts in CU. Meijer is not able to cannibalize to that level, and so WalMart will increase its advantage as they open more outlets.

This cycle is also the reason why there will not be a chain supermarket in campustown - in order to compete on this level, and compete with WalMart, supermarkets no longer consider stores less than 60,000 square feet, unless they are located in a "highly urban" area. Given the short drive time to N. Prospect (the previous poster notwithstanding) this is not considered such an area. That's why the smaller supermarkets are all the older ones. This cycle is also why "a large national clothing chain" did not move into the "styrofoam palace" next to Follett's in campustown. Old Navy was wooed, but they will not build stores in strip malls that are not next to their allied chain (Linens'n'Things I believe, - whatever is next to their current store) and so they went up to N. Prospect where the allied stores could own the entire strip.

But eventually some chains will win. At that point, there will be no further need for all the excess stores, both the "loser" stores and the extra, cannibalizing "winner" stores. Thus, they will close. Meanwhile, the smaller downtown stores are mostly gone, and will take a while for them to recover and serve the newly deserted areas. Perhaps they will recover, and the cycle will resume. But what has been lost in the process?

It's not just about WalMart. It's the entire system. The people running the stores, the people running the factories, they're all running for their survival caught up in that system. All of the above has been detailed in various issues of Business Week and Fortune. It's broken.

But, as far as I'm concerned, if they are going to insist there be strip mall sprawl in Urbana, they oughta keep it all up by Farm'n'Fleet as they originally planned.

Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 5
13 Apr 2004
I work at wal-mart and as an employee we are all underpaid. The company makes billions of dollars and the associates get next to nothing. I hope that an executive of wal-mart sees this,because all the people I work with complain about the wages. The cost of living keeps going up and our pay checks stay the same!!!!!!!!!!!
Re: New Walmart To Spark Sprawl On Urbana's East Side
Current rating: 0
21 Jun 2004
Why don't you quit attacking Walmart.. There is far more good derived from them coming to your community. JOBS, NEW BUSINESSES THAT FOLLOW THEM AROUND, NEW ROADS THAT ARE BUILT THAT ARE BIGGER AND BETTER.
AND YES, CHEAPER PRICES. CUT IT OUT AND LOOK AT THE OTHER SIDE.