It’s been a busy week for Wal Mart. The company has taken a major lead in supplying relief to the communities devasted by Hurricane Katrina. It is important to recognize, applaud and thank the company for its humanitarian actions. This cannot, however, divert our attention from those aspects of the company that continue to do damage.
Mitchel Schneider, president of First Interstate Properties Ltd., the developer for Steelyard Commons, provided information that the Ohio Department of Transportation has been dragging its feet on giving up.
While repeated emails to ODOT failed to elicit what the department estimated would be the traffic growth as a result of the construction of Steelyard Commons, Schneider quickly came up with a figure of 15,000 vehicles daily on the weekend and about 10,500 daily on weekdays.
While the ODOT figures are not precisely comparable — they make no distinction between week days and weekend days, and the ODOT figures do not appar to address traffic coming in from the southbound Jennings freeway — the department estimated in its Thursday, 16 June presentation that:
If the Quigley Road Connector is not built, there will be an average of 18,060 vehicles a day on West 14th street. If the connector is built, that traffic projection drops 59 percent to an average of 11,880 vehicles per day.
For Clarke Avenue the drop is even more dramatic. If the connector is not built, ODOT projects that the average daily traffic there will be 19,680 vehicles. If the connector is built, that drops 70 percent to an average of 5,630 vehicles per day.
Assuming approximatley 12-hour days of operation, that works out to 875 cars per hour on the week days and 1,250 cars per hour on weekend days.
From The New York Times:
Having failed to unionize any Wal-Marts, American labor unions have helped form a new and unusual type of workers’ association to press Wal-Mart Stores Inc. to improve its wages and working conditions.
Belva Whitt, a Wal-Mart cashier, says a reduced schedule has at times forced her to choose between paying rent or putting food on the table.
With its first beachhead in Central Florida, the two-month-old group is already battling Wal-Mart, the nation’s largest corporation, over what it says is the company’s practice of reducing the hours that many employees work, often from 40 a week to 34, 30 or even fewer, jeopardizing some workers’ health benefits.
Belva Whitt, a cashier who earns $7.40 an hour, said she had joined the new group, the Wal-Mart Workers Association, largely because she was unhappy with her wages and because her hours were reduced to part time from full time many weeks.
I’m a single mother trying to raise my son, so not having that money makes it hard, said Ms. Whitt, 30. Sometimes I have to decide, am I paying the rent or will I have food on the table?
From the September issue of the Harvard Business Review, via Tom Peters:
Some observers have argued that Wal*Mart owes its superior returns to its enormous size and, as a consequence, its purchasing power. [But] if the purchasing power that comes with size were responsible for the company’s success, then Wal*Mart’s profitability should have increased as the company grew.
Yet its operating margins have not increased since hitting their high watermark in the mid-1980s. … As Wal*Mart has grown, its profit margins have suffered in comparison with those of more geographically concentrated competitors, such as Target. … Sam’s Club appears to be no more profitable than Costco and BJ’s Wholesale Club.
The fact that Sam’s Club is the least geographically concentrated of the three competitors appears to have offset any advantages derived from Wal*Mart’s efficiency. … Wal*Mart’s experience overseas tends to confirm the limited impact of the retailer’s operating advantage. Overseas returns are less than half its domestic margins. – Bruce Greenwald & Judd Kahn, All Strategy Is Local.
My Soundtrack: Combing My Hair In A Brand New Style by Jim White on WOXY.