Monday, December 7, 2009

Big-Box Swindle: The true cost of mega-retailers and the fight for America's independent businesses

Following on the tails of my latest read, The Way We Eat: Why our Food Choices Matter, Stacy Mitchell's Big-Box Swindle: The True Cost of Mega-Retailers and the Fight for America's Independent Businesses (2006), was not an intentional companion to Singer and Mason's book on food ethics, but certainly a fated one. Both published in 2006, where The Way We Eat was a primer on all that encompasses the ethics of eating, Big-Box Swindle tackles the hard-core realities of what chain stores do to our local communities and economies... and it isn't pretty.

Here are some highlights. Big-Box (aka chain) stores:
  • increase resource demand on local government (fire, police, utility, roads) – studies show that small, local businesses make far less demands on community infrastructure, infrastructure for which its citizens have to pay
  • decrease a sense of community - citizens of towns without big box stores are more active in their communities and local governments
  • decrease job opportunities – contrary to popular opinion, after initial jobs are gained, small businesses are forced to close their doors and in the end more jobs are lost than gained because of the efficiency of big-box stores (they can do more with less people - not to mention less skilled, lower paid people)
  • decrease the amount of revenue changing hands in a community - at least 3 times the amount of money stays in a community when you shop at a locally-owned store; more if you shop direct from a farmer or eat at a local restaurant
  • decrease product quality and push jobs overseas – the incessant demand for lower prices forces suppliers to lower their standards and move jobs overseas or else lose a significant source of income when the big-box refuses to sell from that particular supplier (keep in mind Walmart now accounts for 10% of all retail sales. That's serious power!)
  • increase urban sprawl leading to increased car use and pollution – big-box stores operate on the fringe of communities, unlike small local businesses which tend to be central to the community, located near homes and restaurants.
  • increase the tax burden on local citizens – big-box stores use their size to manipulate local governments into tax breaks which means local businesses and citizens must make up for lost revenue
  • decrease the quality of living – big-box jobs are lower in pay and benefits than jobs at local businesses
  • increase the threat to the environment – every big box stores comes with its own massive parking lot, one of the biggest sources of highly-concentrated water-way pollutants; big-boxes are famous for clear-cutting land and destroying natural habitats
  • decrease individuality by creating cookie-cutter communities
  • decreases personalized customer service – salespeople were once experts on their products and knew their customers likes and dislikes, taking the time to get to know their customers, helping best meet individual customer needs. Big-box associates are reprimanded for spending too much time with customer. Their job is to move product as quickly as possible.
Disgusted? Even knowing some of these things, I felt despondent at all the havoc these chain-stores leave in their wake, the manipulation they calculate behind doors at board meetings. And we're not just talking about Wal-Mart here (though they are the easy fall-guy), but Target, Costco, Barnes and Noble, Kroger, Bed Bath and Beyond, Home Depot, Old Navy, Best Buy, PetSmart - you get the idea - are all culprits.

Interesting to note, was that today's growing anti-chain movement is not the first. In the 20's and 30's politicians actually ran on platforms of preventing big-box expansion.
Opponents argued that chains threatened democracy by undermining local economic independence and community self-determination. As they drove out the local merchant – a “loyal and energetic type of citizen” – the chains replaced him with a manager, a “transient,” who was discouraged from independent thought and community involvement, and who served as “merely a representative of a non-resident group of stockholders who pay him according to his ability to line their pockets with silver.
Wow! Sounds familiar, doesn't it? The bottom line is we've reached that time again, where we as citizens (not consumers) need to take a stand on the future of our communities. Thankfully, the book concludes on a positive note, citing examples of successful anti-chain campaigns. There is hope. But like anything else, the first step is awareness, and that awareness is sorely lacking in the U.S. today.

Big-Box Swindle is a powerful ally in the buy-local movement and a must read for those wanting to live a life of mindful consumption. Don't set foot in another chain-store until you read this book. You (and your community) will be glad you did.
Rated: 4 out of 5 (I'd give it a 5, but it was so full of data, it was at times hard to concentrate - you have to take your time on this one)

Recommended: to anyone who wants to live a more mindful, citizen-driven (not consumer-driven) life

3 comments:

Green Bean said...

Thanks for this review, Heather. I felt that Big Box Swindle was such a necessary read - a true eye opener. I've never shopped the same since - or looked at a chain store in the same way.

Heather @ SGF said...

Green Bean - I was hesitant at first to post it with all the other reviews already done on it. But I suppose we all offer a slightly different perspective. And the more reviews we do, the more people will see that (just like you said), it makes a huge impact on the way we live.

Going Crunchy said...

I can't wait to read this!