3 ms·

Another strength is that the stores just simply aren't that big. I've been to Wal-Marts in rural parts of the lower Midwest that are simply too huge for the pop

Another strength is that the stores just simply aren't that big. I've been to Wal-Marts in rural parts of the lower Midwest that are simply too huge for the population density. Somehow they manage to stay open, but I am never entirely sure how. DG, on the other hand, tends to be half to a third of the size and does very well on the basis that they pretty much only sell stuff that people are actually gonna need on a regular basis. Combine that with the logistics you mentioned, and it's bound to be able to at least sustain itself.

eberkund 9y ago
I guess since the land is cheap and they built the building they operate out the operating cost isn't much higher like it would be were they renting space in a developed urban area. Plus it is like they are investing in the real estate as I've seen a few small towns grow a lot in population after Walmart moved in.
throwawayjava 9y ago
Enormous TIF subsidies, mostly.
- jessaustin 9y ago
  TIFs are so evil. I avoid stores so sited (and their ~25% "tax") when I can, but their very existence harms the credit of every county and most municipalities I know. They don't even perform their supposed role of restoring "depressed" areas, because a third of them are out in the country and another third just replace one profitable business with another (with a ~3 year interim of nothing at all on the site while the lawyers and lobbyists do their evil shit). The whole phenomenon is just a scheme for zoning boards etc. to enjoy corruption.
- knz 9y ago
  https://en.wikipedia.org/wiki/Tax_increment_financing https://en.wikipedia.org/wiki/Tax_increment_financing for those who are not familiar with TIF.
taurath 9y ago
Its the last vestige of industry in small town america, it seems. Wonder what happens when it, too, goes away.
kevinmchugh 9y ago
Wal-Mart has tended to understaff its stores. Results are dirtier, messier, more crime-friendly stores. They've off-loaded their security/loss prevention expenses on to local police departments: https://www.bloomberg.com/features/2016-walmart-crime/ https://www.bloomberg.com/features/2016-walmart-crime/

eberkund 9y ago

I guess since the land is cheap and they built the building they operate out the operating cost isn't much higher like it would be were they renting space in a developed urban area. Plus it is like they are investing in the real estate as I've seen a few small towns grow a lot in population after Walmart moved in.

throwawayjava 9y ago

Enormous TIF subsidies, mostly.

jessaustin 9y ago
TIFs are so evil. I avoid stores so sited (and their ~25% "tax") when I can, but their very existence harms the credit of every county and most municipalities I know. They don't even perform their supposed role of restoring "depressed" areas, because a third of them are out in the country and another third just replace one profitable business with another (with a ~3 year interim of nothing at all on the site while the lawyers and lobbyists do their evil shit). The whole phenomenon is just a scheme for zoning boards etc. to enjoy corruption.
knz 9y ago
https://en.wikipedia.org/wiki/Tax_increment_financing https://en.wikipedia.org/wiki/Tax_increment_financing for those who are not familiar with TIF.

taurath 9y ago

Its the last vestige of industry in small town america, it seems. Wonder what happens when it, too, goes away.

kevinmchugh 9y ago

Wal-Mart has tended to understaff its stores. Results are dirtier, messier, more crime-friendly stores. They've off-loaded their security/loss prevention expenses on to local police departments: https://www.bloomberg.com/features/2016-walmart-crime/ https://www.bloomberg.com/features/2016-walmart-crime/