[lbo-talk] A novel challenge to Walmart (was Re: one view of the Greens)

/ dave / arouet at winternet.com
Fri Oct 31 13:45:35 PST 2003


[A new twist on the "local currencies" theme...]

Local stores join to fight Super Wal-Mart Associated Press

Published October 31, 2003

ALBERT LEA, Minn. -- Local retailers are banding together to compete against a new 155,000-square-foot Super Wal-Mart.

Ron Kraus said he has persuaded 13 businesses to offer discounts at his Korner Marts and Dairy Queens. In return, he's offering discounts at their businesses.

It works like this: If someone buys flowers, or something else, at a participating store they can take their receipt to another store and get a discount, on gasoline for instance.

Several businesses said they would expand the cross marketing arrangement if it successfully encourages people to shop at locally owned stores.

Kathy Sabinish, owner of Dave's Phonebooth and Frames R Us, said local businesses help the local economy while money spent Wal-Mart goes to the company's home office in Arkansas.

Alfred Marcus, professor of strategic management at the University of Minnesota, Carlson School of Management, said he has studied Wal-Mart's strategies and never heard of local businesses reacting as they have in Albert Lea.

He called it a smart move. ``It's like fighting the gorilla with a virtual gorilla,'' he said.

Alan Suitts, manager of the Super Wal-Mart, he said he welcomes the competition. ``It makes us better merchants and makes us better for the community,'' Suitts said.

http://www.startribune.com/stories/462/4186267.html

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/ dave /



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