from In These Times:
....snip....
The Arkansas-based company made their fortunes by cornering rural and suburban markets. But Wal-Mart sales in the U.S. have continued to decline in part because the company says its working-class base is grappling with the recession and high gas prices.
As a result, they’re looking to expand into cities like New York, Washington D.C. and Detroit, places that have shunned the company for its anti-union history.
The same was true in Chicago ever since Wal-Mart opened their first store on the West Side four years ago. The world’s largest retailer faced major opposition for paying low wages, contributing to the loss of American manufacturing jobs, and its tendency to drive out small businesses. In 2006, the City Council tried to enact a “living wage” bill, which was ultimately vetoed by Mayor Richard Daley, an ardent supporter of Wal-Mart.
But with the help of public relations and a bad economy, the city had a change of heart. With employment figures in Chicago at 10.5 percent compared to the 9.7 percent national average, community leaders, ministers and city alderman eased their vitriol.
Wal-Mart has been able to capitalize on economically distressed areas with what looks to be a panacea on the surface: new stores could also add 12,000 jobs and bring in $500 million sales and property taxes. Proponents also say the inclusion of a grocery store can help to eliminate so-called “food deserts,” depressed neighborhoods lacking supermarkets.
But as we’ve reported before, the existing Wal-Mart in Chicago hasn’t led to new jobs or economic activity. ........(more)
The complete piece is at:
http://www.inthesetimes.com/working/entry/6196/after_hard-fought_chicago_victory_wal-mart_eyes_urban_expansion/