SBDC program director counsels businesses “How to Battle the Big Boxes”
Released: June 22, 2004
Wal-Mart’s impact on local business communities and the related media hype has been the subject of a unique workshop presented by Brian Pope, director of the Small Business Development Center (SBDC) at the University of Wisconsin-Whitewater. Speaking from a neutral perspective, Pope has addressed area chambers of commerce on “How to Battle the Big Boxes.”
“I discuss the impact of Wal-Mart and how you can compete and even use the situation as an advantage as a competing retailer,” says Pope. To prepare for his talk, Pope did a comprehensive review of the popular and academic literature on the subject. He found that many of the current newspaper and magazine articles put Wal-Mart’s business practices in an unfavorable light. He balances that information with a critical review of several major academic studies done on the impact of Wal-Mart and Wal-Mart Super Centers on small towns.
“My point to local business people is to not get caught up in the whirlwind of media attention that’s given to the next great ‘something,’” emphasizes Pope. “Right now Wal-Mart is the flavor of the day, but in another five or ten years, will we be asking – whatever happened to Wal-Mart?”
One of the most prominent Wal-Mart studies Pope cites was conducted by Kenneth Stone, economics professor at Iowa State University. Stone found that Wal-Mart had a negative impact of $2.5 billion over a 14-year period in 260 Iowa communities. Another UW extension study outlines Wal-Mart’s negative impact on the number of retail businesses in Wisconsin’s “tiny towns” of 800-1300 residents. Pope illustrates the “unpresented” side of both studies and warns his audience to take them with a grain of salt because “there’s always two ways to interpret numbers.”
The bottom line, Pope says, is that regardless of hype, there’s no “mystical way” to compete. Business success fundamentals never change. Retailers must take the time and effort to understand the customer’s needs and wants and then build a marketing strategy around them. They must also fully understand their competition.
“Walk in your local Wal-Mart or Shopko or Target and look around. How is it laid out? What products are offered? Maybe you can’t compete on price, but consider what you’re good at and they’re not,” Pope says.
Pope’s presentations to the Mukwonago and Elkhorn chambers of commerce were well received. He is available to speak upon request.
The SBDC services five counties and more than 22,000 businesses. The center offers a free “First Step” course for those who want to explore starting their own business. A 13-session Entrepreneurial Training Course is also available for anyone interested in developing a complete business plan. For more information, contact SBDC at (262) 472-3217 or visit their Web site at www.uww.edu/sbdc/ .
- Jane Provorse,provorsj@uww.edu
