September 19, 2005

Oakland

Thomas Lifson writes that the new Oakland store (you know, the one that had 11,000 people apply for 400 jobs) is a big hit with consumers:

The East Oakland neighborhood houses many blacks, Hispanics, whites, and a growing Asian population. I take it as a very good sign that the welfare of the general public in the form of low prices is outweighing the special interest of the unions. Even in Oakland.
He links to this excellent piece in the SF Chronicle by Chip Johnson:
And a demonstration by community activists outside the store the day after it opened hasn't slowed the crowds of people shopping there.

On the day the Wal-Mart opened on Edgewater Drive, it reported more than $500,000 in sales revenues, said City Councilman Larry Reid, who supported the project from the start.

Since then, revenues at Wal-Mart stores in neighboring cities has fallen off -- a 32 percent drop in San Leandro and 22 percent in Union City, said Reid, quoting figures that Wal-Mart officials provided.

The overwhelmingly positive consumer response has also prompted other retailers, many of them national chains, to call Reid's office to inquire about business opportunities in the city, he said.

That's quite a bundle of ideas: activism is trumped by bargain hunting, people in Oakland have money to spend, Wal-Mart has cannabalized its other stores, and (not listed) traffic was terrible.

Posted by Kevin on September, 19 2005 at 04:48 PM