The continuing persecution of Walmart
In recent lectures on the incessant pressure group warfare over land rights in America, I’ve highlighted the legal hurdles that Walmart faces everywhere it tries to expand. Walmart’s low prices and non-unionized workforce pose big competitive challenges to high-price mom and pop stores as well as labor unions. Our legal system encourages such groups, as well as nearby landowners, to exert pressure on state regulators and courts to deny Walmart the zoning and development permits it needs to expand.
As far as I knew, however, other large chain stores typically refrained from trying to block Walmart’s expansion through local political pressure. Boy, was I wrong. According to this article in The Wall Street Journal, Walmart’s competitors are sometimes hiring outside consultants adept at “black arts” to block new Walmart projects, while disguising the true opponents’ identities.
In Mundelein, Illinois, near Chicago, a grocery store chain called Jewel-Osco became alarmed when a developer announced plans for a shopping center anchored by a 200,000-square-foot Walmart supercenter with a full grocery store inside. (Walmart is now the nation’s largest purveyor of groceries.) Jewel-Osco turned to the ironically named Saint Consulting Group for help. Saint appointed a project manager who, per company policy, adopted an assumed name. This manager then contacted landowners near the Walmart site and complained—falsely—about how construction of a Walmart had driven down the price of his parents’ home and ruined their planned retirement. Suitably riled up, neighbors climbed on the anti-Walmart bandwagon. Read the rest of this entry »

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