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NEW WAL-MART STORES TO FIGHT BLIGHT IN U.S. NEIGHBORHOODS

By Brannon Boswell

In a move that combines good public relations with good business, Wal-Mart Stores has announced plans to open stores in some of the most underserved urban neighborhoods in the U.S., while at the same time encouraging mom-and-pop shops in those same neighborhoods to thrive.

“The American people are yearning for stronger and more vibrant communities,” said CEO H. Lee Scott Jr. at a news conference last month. “And they do not expect businesses to sit on the sidelines. One of the clear trends we’re seeing at Wal-Mart is the expectation for businesses to play a more active role in the community.”

Wal-Mart’s plan to become more community-friendly includes opening about 50 stores within the next two years in what it calls Wal-Mart Jobs and Opportunity Zones. These zones, 10 in all, are in neighborhoods struggling with high crime and unemployment rates or containing properties in need of revitalization or sites that are environmentally contaminated, the chain says.

Wal-Mart says it will work with small businesses in these areas to try to help them prosper. The company will spotlight five such businesses per quarter in newspaper ads, for example, and produce free radio spots for broadcast over its in-store radio network.

The company will also hold seminars on best practices that help small businesses succeed with a Wal-Mart in their community. “Small businesses have figured out that Wal-Mart is a positive force in the local economy,” Scott said. “They are seeing our presence as an opportunity to capitalize on things like increased customer flow and rising incomes.”

Wal-Mart will also donate a total of $500,000 to local chambers of commerce throughout the 10 zones. “We will work with those chambers to spend this money in ways that will have the most impact for small businesses in those surrounding neighborhoods,” Scott said.

The first of the stores broke ground in a neighborhood on Chicago’s West Side last month, on the site of a former manufacturing plant. The store will be Wal-Mart’s first within Chicago’s city limits, though it operates many in more-affluent suburbs of the city and has tried unsuccessfully to open on the South Side.

“We had been trying for some time to open a store on the South Side of Chicago,” said Scott. “This was very controversial. The local alderman supported the store, but it was denied by the City Council. And it was denied to the detriment of the working families of Chicago.”

The company says it will announce the locations of the remaining nine zones over the coming months. “The fact is that Wal-Mart has never been afraid to invest in those communities that are overlooked by other retailers,” Scott said. “Where those businesses see difficulty, we see opportunity.”