The Big-Box Swindle 
I’ve just received a notice from the library that in two days this book I’ve checked out no less than three times is, once again, due. It’s the Big-Box Swindle by Stacy Mitchell. I admit, it took me two and a half of those checkouts to actually get it read. (I was also reading several other books, including the Brief Wondrous Life of Oscar Wao by Junot Diaz, which is so delightful that it can be read in one checkout.) But this isn’t to say that Big-Box Swindle isn’t a good read. It’s well written and fascinating. It’s also a bit uncomfortable. It’s sort of like watching the commercials asking for money for starving children or reading a diet book that tells you everything you’ve been eating is killing you.
Supplied with unbelievable stats and research from the Institute for Local Self Reliance, where the author is a senior researcher, Mitchell presents an iron-clad argument against Wal-Mart, Home Depot, etc. Anyone who reads this book will never step into a Target and buy a $10 t-shirt – even if it’s a very cute t-shirt– again without at least thinking about it. In fact, this book has made me think constantly about where I spend money.
Like so many people I’ve met, I only became interested in the issue of big boxes when, living in an L.A. exurb, another one was threatening to open in our area. I met a bunch of people who were fighting against the Home Depot and then gradually started to learn why it was so important to oppose the Depots of the world. I plan to cover this more in depth soon, but for now back to the Big-Box Swindle. As I’ve said, it’s due and I’m not planning to check it out a fourth time. My initial inclination was to finish the book and do a feature interview with Mitchell. I contacted her but her schedule prevented it. At first, I thought, “OK, she’s a researcher, not a media hound.” Later I found a bunch of places she’d been interviewed (including an audio interview that you can listen to below). I guess Ex/Urb, though, doesn’t yet have the clout to get authors to do interviews from their Paris hotel rooms or wherever. In an email, she urged me to use stats or other info from the book. So, instead of a feature interview, I’m posting an “Out Here” on it and, yep, I’ll use some of Mitchell’s fascinating stats…
For example, do you really believe Wal-Mart advertisements that they are the low-price leader? Lately, I’ve also watched ads where they claim they save the average family thousands of dollars a year. In 2005, a research firm called Zenith Management Consulting checked the prices of 3,800 items at Wal-Mart, Kmart, chain drugstores and chain supermarkets in 60 cities. On more than 80 percent of the items, Wal-Mart did not have the lowest prices. According to research cited in Big-Box Swindle, the chain pulls a lot of funny business, puts cheap stuff in the aisles to lure customers and thus makes us believe everything there is priced rock-bottom. Home Depot, Wal-Mart and other big chains have also been accused of going into communities with super-cheap prices to start and, once the local competition is put out of business, raising prices. This happens so gradually that few people really notice. Furthermore, despite what their public relations efforts claim, big boxes don’t treat their employees or the communities very well. A huge portion of big-box workers are on public assistance because while these companies are some of the most profitable imaginable, they don’t pay workers enough to live. At first blush you might think that’s the worker’s problem; he or she should get a better job. But think about it just one step further. What it really means is that while we frequent these stores to save money, they are actually doing us in. Big boxes help drive out local businesses (that tend to pay employees more and contribute more to local tax bases) and then taxpayers have to subsidize their workers. Big boxes have also figured out a gazillion tax loopholes so that very little of their profits stay in our local communities, according to Mitchell.
The big-box shopping plaza with the huge parking lot is what some call derisively the “suburban model.” If you read Big-Box Swindle, you’ll see that it all pretty much had to do with the way suburbs were planned and the way our government gave incentives to developers of these stores. And now Mitchell and others have pointed out that the suburban big-box trend is being imported into urban areas. West Hollywood and Manhattan are now home to the likes of Target and Home Depot. What a switch! The ‘burbs are influencing urban America.
I think the truth is that perhaps in so many shopping ways urban America and suburban America aren’t so different. Big boxes have figured that out. I’m not a huge fan of big box in general, but I’ll confess that I shop at Target occasionally (not without guilt thanks to Mitchell) and so do many city friends. However, if suburbia has helped start the problem my bet is that we’re also going to help turn the tide. People like those I’ll be profiling in the next couple of weeks are fighting back. Suburban community leaders are also starting to get it. We can’t offer enormous tax breaks to big boxes when they come into our communities! We can’t serve up loopholes to them so that they are ridiculously profitable while their workers are forced on public assistance! There is a place for big boxes but they can’t be given preferential treatment over locally owned businesses.
But, still, there’s the average suburban person. When I first heard that Home Depot wanted to move into my neighborhood, I didn’t think it was that big of a deal. One of my neighbors (who has since moved to the Boston burbs so she’s their problem now) told me she wanted a Wal-Mart instead of Home Depot because the prices were so great. Another friend wondered about a recent spate of foot massage shops opening on a main drag in our area. “How can they approve so many foot massage places and shoot down a Home Depot?” she asked.
If you’re wondering too, please read Big-Box Swindle. I’m returning it today. It’ll be waiting for you.
Click here to listen to Stacey Mitchell’s KUCI interview on the Big-Box Swindle.