St. Louis could be selected
Of the St. Louis American
Wal-Mart Stores CEO Lee Scott announced last week an ambitious, nationwide “Wal-Mart Jobs and Opportunity Zones” initiative that will see the nation’s largest retailer build more than 50 stores in neighborhoods with high crime or unemployment rates, on sites that are environmentally contaminated, or in vacant buildings or malls in need of revitalization.
Over the next two years, Wal-Mart says the new stores are expected to create between 15,000 and 25,000 jobs, many of which will be in minority communities, and generate more than $100 million in state and local tax revenue for these communities.
“Wal-Mart has never been afraid to invest in communities that are overlooked by other retailers. Where those businesses see difficulty, we see opportunity,” Scott said during a National Newspaper Association conference.
“This is a commitment to reach beyond our stores, to further engage the community, and to offer an even greater economic boost to people and neighborhoods that need Wal-Mart the most.”
The first of the “Jobs and Opportunity Zones” are opening in Chicago, with St. Louis being a likely future target.
The St. Louis American contacted the office of St. Louis Development Corp. Executive Director Rodney Crim last week, but had not received a comment from him or his office as of press time on Wednesday.
Lori Willis, Schnuck Markets spokesperson, said, “We’ve been aware for some time that St. Louis is a prime target. (Wal-Mart) has been very clear about that.”
Willis said she would not be surprised if any new Wal-Mart store in an urban area “had a product mix” that includes groceries.
“We will continue to do what we have done over the past 67 years – and that is to be a grocer that is committed to the community and not just profitable stores,” Willis said.
Schnucks operates several stores that are not profitable, including one in East St. Louis, Ill. It is also not a stranger to the city of St. Louis, where it has eight stores.
Warning that a Wal-Mart “blight” designation will be determined by that firm, “and who knows what that means,” Willis said Schnucks would continue its role “in helping revitalize the entire city, and we’re anxious to continue being a part of its redevelopment.”
“The Wal-Mart Jobs and Opportunity Zone initiative will create more opportunities for small businesses to capitalize on the benefits of having a Wal-Mart store in their community, like customer flow and rising incomes,” Scott said.
In addition, Wal-Mart will “reinforce its strong commitment to diversity by placing a special emphasis on supporting minority and women-owned businesses.”
He said Wal-Mart will donate a total of $500,000 from the Wal-Mart Foundation to local chambers of commerce, including many minority chambers.
The company will work with these chambers to create and identify effective programs for this funding. These resources could be used in a variety of ways, including developing websites, sponsoring community events or hosting business improvement sessions.
Wal-Mart will also hold “Working with Wal-Mart” sessions, which help local, minority and women-owned businesses learn first-hand how to do business with Wal-Mart.
David Cook, United Food and Commercial Workers Local 655 secretary-treasurer and president of Wake Up Wal-Mart St. Louis Chapter, said the question is, “Do we want our cooperate firms to lead responsibly or lead the race to the bottom?”
“We think Wal-Mart is leading a race to the bottom,” Cook said. “By targeting blighted urban areas, we think they are exploiting edgy people in the city.”
Cook said the average local union grocery worker makes $13 an hour with benefits while a Wal-Mart employee would make $9 an hour with no benefits.
“We, as business people, have an obligation to stay in business, so there’s always competition,” Marlene Gebhard, president of Shop ‘n Save Warehouse Foods Inc., told the Post-Dispatch.
She said she worried though that someday “people might not have choices.”