A meeting at Make the Road NY, one of the organizations working with local business owners to oppose Wal-Mart in Brooklyn, where members rallied for fair labor practices and living wages. Photo by Aaron Short for BushwickBK
The Wal-Mart backlash is in full bloom — and the megaretail chain hasn’t even opened a store yet.
Bushwick’s small business owners are growing restless as the global retail giant has begun lining up support from unions and other businesses for a proposed retail store in East New York.
Encouraged by groups such as Make the Road NY, 30 business owners from Myrtle and Knickerbocker Avenues are organizing against Wal-Mart’s inclusion in the Related Industries-owned Gateway II mall complex.
Francisco Acosta, owner of #1 Stop Grocery, called the store his "lifeline."
"It helps provide for my entire family here and abroad," said Acosta. "I know that I will compete directly with Wal-Mart to sell many of the goods I currently stock. I can’t keep up with their low prices. In tough economic times, this might be what puts me over the edge."
And Maria de los Santos, owner of Mary’s Jeans and Mary’s Flowers, said that Wal-Mart does not share her values.
"As a small business owner, I invest in my neighborhood because this is where I am raising my family as well. What I make gets re-invested in Bushwick. What Wal-Mart makes in sales will never get put back into the neighborhood."
They have a good reason to be worried.
A 2009 study touted by Make the Road showed that over a period of two years after a Wal-Mart opened in Chicago, 25 percent of independently-owned businesses within a four-mile radius of the retail store closed.
Make the Road organizer Dan Coates doesn’t think that’s a coincidence.
"You can’t peg it on a recession," said Coates. "Stores that were more directly in competition with Wal-Mart were hit harder. The idea of Wal-Mart coming in — this is the straw that breaks the camel’s back."
But Wal-Mart is lining up their own union support from some construction-worker and building-trade unions in a glitzy PR battle with retail workers, according to City Hall News.
And many Bushwick residents BushwickBK interviewed support a Wal-Mart in Brooklyn saying they would buy appliances there, but would still shop on Knickerbocker to buy every day items and groceries.
But Make the Road’s Director Javier Valdes said that aggressively priced items like air conditioners lure customers toward spending all their money on everything else.
"It’s what they call door busters," said Valdes. "You end up buying everything there that you would have bought at Knickerbocker or Myrtle. At the end of the day it’s only 15 minutes from Bushwick to Gateway. You’re going to see more and more people going there."
And that’s why Make the Road is working hard to organize small businesses and educate its membership base about the effects of patronizing the store as well as the corporation’s labor practices.
"We’re not in the business of telling members where to work or not to work," said Valdes. "We’re trying to raise the living standards of all workers and if Wal-Mart comes in, workers will take a step back."
Brandon March 7th, 2011 at 6:08 pm
Playing Devil’s Advocate a bit… is Wal-Mart’s adverse impact more likely to be lower in NYC vs an auto-dependent area? As most people here don’t drive, it seems convenience often comes before cost. Hauling piles of merchandise on a city bus doesn’t sound appealing.
Look at places like Brooklyn’s Natural which do just fine given their convenient location and hours, even though their prices are ridiculous, as an example.
I know I am less likely to get on the M train to KMart when I can just walk to the corner bodega (or Duane Reade/Rite Aid… oops) for something. I can’t imagine Wal-Mart is going to put bodegas out of business; won’t they realistically hurt Target, KMart, Costco, BJs etc more especially given the transportation realities?
gimme March 7th, 2011 at 7:15 pm
look, we need to have people of walmart photos: the bushwick edition – so yes this has to happen, mmkay?
poorhipster March 7th, 2011 at 7:29 pm
Where do bodegas purchase their stock?
Plazma March 7th, 2011 at 9:09 pm
Not too far from here is Target, K-Mart, and some other big box retailers and the area hasn’t gone under. Even if I had a car I would not drive to Gateway to shop at Walmart. But now that Walmart is coming to NYC all these small businesses have to up their game, that is, their customer service has to improve. They must provide white glove service to all customers. Otherwise, bad service combined with an shopping option will lead me to go elsewhere. What is white glove service? Go shop at Sahadi’s on Atlantic Avenue. Their service is impeccable.
I once went to a restaurant in the area. When I entered the restaurant the staff ignored me. Finally someone asked what do I want? I thought to myself, what do you think I want? I want a table, I want to order dinner, and I want good food is what I thought. I walked right out, jumped on the L train and had a good meal at Roberta’s.
Brandon March 8th, 2011 at 10:56 am
Wait, you got good service at Roberta’s? Mine there has been meh-worthy at best and multiple friends have horror stories.
Joseph March 8th, 2011 at 11:22 am
Its really ironic to have local merchants complaining about Wal-mart labor practices and wages. How many of the workers on Knickerbocker or Myrtle get a “living wage” or any insurance. Not too long ago the grocery store got in trouble because they were not even paying the legal minimum. At least at Wal-Mart you get decent wages and some basic coverage.
Gabrielle March 8th, 2011 at 11:41 am
There are a lot of stores on Knickerbocker Ave., and we all know that some them sell overpriced items–like furniture, for example. Some sell crappy made in China cheap clothing and sneakers. What I am getting at is that the stores on Knickerbocker are not realistically catering to people, and many of them are not paying their workers decently as well. I don’t like Walmart, nor do I want to see places go out of business, but this is a good opportunity for Bushwick businesses to re-think their game plans and re-vamp their stock, practices, customer service etc.
I WANT to buy my groceries on Knickerbocker, but recently Peach Farm stopped selling all their organic products–milk, eggs, yogurt, etc. This really stinks. I’d rather go there than a big supermarket. I don’t know why Peach Farm decided to shoot themselves in the foot.
Nick March 8th, 2011 at 12:37 pm
Actually, the wages aren’t decent. Wal-Marts encourage their employees to take advantage of state-run welfare programs instead of paying them living wages. Plus, if you’re a woman, look out for that glass ceiling. Class action lawsuit pending.
As for the other stores in the area, I can’t speak to that.
Garrett March 8th, 2011 at 12:58 pm
Hopefully the “threat” of a Wal-Mart moving in will motivate the many bodegas on Knickerbocker / Myrtle to raise the quality of there products / services. Say what you will about the evils of chain stores. They typically don’t feature obnoxious speakers blaring music outside their doors, expired produce and slow / unproductive checkers.
chillinoncentral March 8th, 2011 at 2:17 pm
I’m just looking forward to wandering into their gun department like Wal-Marts and handle a rifle while asking an employee where the anti-depressants are located… or maybe fill shopping carts with stuff and then just stranding them at strategic locations.
Professional Alternative March 8th, 2011 at 6:05 pm
This again, well, I will just point out again that aside from whatever issues we may have with Wal-Mart’s rent-seeking and other possibly immoral acts from a position of privilege, there’s no reason to oppose them just to prop up overpriced mom-and-pops. Or even workers. Shopkeepers:workers:customers = 1:5:1000. Hardly see why we should care that this or that businessman will have a harder time ripping off the more mobile of us (who has a car??) but not that the far more numerous and poorer actual customers will save tons of money on necessities.
It’s just poor economics all around in this piece. No, Wal-mart will not spend the profits from sales in Bushwick. But the Bushwick residents who SAVE money will have more of it to spend here on home improvement, food, and other stuff. Duh.
Brandon March 8th, 2011 at 6:43 pm
Gabrielle, I’m pretty sure Associated has organic eggs and milk last time I checked.
Professional Alternative March 8th, 2011 at 7:03 pm
Hah yeah, seriously. Does Roberta’s even serve locals anymore? Not that I have $8 for a PAPER cup of cider.
Nick March 8th, 2011 at 7:23 pm
So no investment in the community, depressed wages, an increase in small-business closings, and an increased burden on public programs is good economics? Duh?
Professional Alternative March 9th, 2011 at 12:35 am
Those things are not economics, they are some examples of what is studied in economics.
Wal-Mart does not depress wages for the people who are likely to take its positions — don’t compare utopia to reality. People who work on Knickerbocker, as pointed out above and previously, often make LESS than minimum wage. Wal-mart does not pay less than minimum wage, ever. Apples to apples please. Some small businesses may close; others may take their places, ones with better business practices. We can’t know. What’s for sure is Wal-Mart alone can’t decimate Knickerbocker or Myrtle, especially if K-Mart, Target, and other of the many big-box stores in NYC haven’t already. Finally, Wal-Mart doesn’t increase reliance on public programs; again, apples to apples — the people working there weren’t hired away from 40K/yr jobs to begin with.
Anyway for some reason, you seem to have ignored the substance of what I said while picking up on the soundbitey parts. Wal-Mart may not invest in the community. We don’t need it to. Our community already exists without it. Which is why our community may be even healthier financially if the consumer majority saves money buying necessities and then has it to spend on other items like making their homes better places to live, better food for their families, and whatever else they deem valuable. If Ripoff Grocery dude can’t pay his mortgage anymore, well, sorry but he’s one man compared to thousands. Maybe he could lower his prices somehow, or give better service/quality. Or maybe he can whine and bitch to the government to keep competition out and protect his profits. And get progressives to back his money grab on the backs of the poor.
Nick March 9th, 2011 at 7:33 am
Sigh, read some studies. You’re way off. Well, I can’t hold your hand through this (you are a professional, after all), so I’m going to get back to work. Although, I’ll leave on a few notes. If you think putting a huge investment into something that doesn’t invest back is a good investment… sure. That’s the answer. It’s the the wrong answer, but go nuts. Of course, low prices magically happen and have no hidden costs anywhere else. And if we’ve learned anything, it’s that short-term investments with long-term consequences are totally worth it. 100% every time. It’s just history, man.
If these Knickbocker/Myrtle stores are a huge problem, why not go specifically for them? That seems like a better solution than just dropping a big box on everyone.
Anyway, I’m done here. Back to work!
Bk MiKe March 9th, 2011 at 9:56 am
The store owners are not the only ones dealing with hard economic times. The people of Bushwick and other neighborhoods need relief too and saving on daily expenses are one way to tell with that. You have to think about it like this, is the benefit of the general populace worth the blow dealth to local business owners? For years we have been forced to pay the expensive prices imposed on us by local businesses who have cornered the market in our neighborhoods for deckades. Some local businesses do give back to the community but thats not always the case and more savings for our consumers, provided by stores such as walmart, would allow them to take part in more activities and eventually giving back to our community in more ways then these local businesses.
Professional Alternative March 9th, 2011 at 10:12 am
I’ve read the same studies — I did it last time we have this conversation. Walmart’s investment, whether long or short term, doesn’t need to “invest back” directly, which is something you seem to be caught up on, because its customers, by spending a lot less on things they buy every day, will have more money to spend on OTHER local things. And if they do NOT spend a lot less, why go? Ambience? Oh right we’re all just swept away like lemmings by the siren song of Madison Avenue — buy buy buy! whether we need/want it or not! If they’re that much smarter than us maybe we should live under corporatocracy.
Yes, low prices can have high costs hidden somewhere else, it’s due to a flawed regulatory structure. But it’s there. Walmart doesn’t change it, it exists already within the reality of that system. Again, Walmart is not the cause of these things, and it’s not the only big box. If people don’t like it, they won’t use it. I know I won’t, but then I don’t have several kids to feed on a modest salary and happen to have a car.
Ultimately, I am not a fan of the place, but I realize this is a personal aesthetic issue plus my distaste for their rent-seeking practices, and yes, as pointed out here, their wage doctoring (the welfare thing). It is not because I care about the stores on Knickerbocker, come on, they are horrible and only can exist because they have most of the population trapped here without a better alternative.
chillinoncentral March 9th, 2011 at 11:01 am
Wal-Mart is always a big target for criticism, mine included. Wal-Mart is not only bad for local neighborhoods; it may also be bad for America.
There was a PBS documentary (available here: http://www.pbs.org/wgbh/pages/frontline/shows/walmart/) that amazed me when they pointed out that Wal-Mart’s 2009 sales of $450 billion makes it the largest corporation by far in the US. There are more that 3,000 Wal-Mart’s in the US and over 100 million people shop there every week. That makes them very, very powerful. The guy that started Wal-Mart (Sam Walton, hence the store’s name; here is his Wiki page: http://www.pbs.org/wgbh/pages/frontline/shows/walmart/) believed in only buying American-made products but he died in 1992 and, after President Clinton signed the Free Trade Agreement with China in 1997-1998, Wal-Mart learned how to demand the lowest prices and American manufacturers cannot possibly compete with workers in China that make about $100 a month and actually live inside the factories that they work inside of. American unions would never allow for lower wages and American workers are too fat to live in factories, so, if Americans can’t compete with China, they cannot sell to Wal-Mart. Wal-Mart has actually managed to put many manufacturers out of business or change the manufacturing landscape (Thomson Electronics, for example, was an American vendor that Wal-Mart dropped in favor of doing business with China… and they are now back with Wal-Mart because they closed down their American factory and re-opened in China). Check out that documentary, you will also be amazed.
Gabrielle March 9th, 2011 at 2:41 pm
You are totally tight Garrett. This is a chance for bodegas and store to get their acts together!!!
Gabrielle March 9th, 2011 at 2:46 pm
They do, but I liked Peach Farm better. Oh wells..It’s also a block or two from me, whereas Associated is ten blocks. No biggie.
ricmac01 March 9th, 2011 at 3:13 pm
Are we really going to take train-train-bus to get to this geographically undesirable area to save a few bucks? Of course, for those already having access to a car, there already are a few Walmarts located within 10 miles from Bushwick. This Gateway location must be at least 5 miles away so I don’t get the big “whoop” this seems to be generating.
Many of our local merchants are struggling due to their inability to meet the needs of a more demanding clientele.
Saundra March 9th, 2011 at 3:18 pm
i totally agree, and sound like u really know what your talking about
Plazma March 9th, 2011 at 8:48 pm
These are all great comments. One thing is clear though: Local Small Businesses have to improve their product quality, prices, customer service, and store appearance–all things they should be doing anyway for us Bushwickers. Hopefully, they will respond and the neighborhood will be better because of Walmart.
The situation is like a lazy lover who takes their partner for granted. Once their is a little competition all of a sudden their appearance improves, they smell good, think of the little things, maybe even go out on a date and say they appreciate the person because they feel threatened by perceived competition.
Mario Rizzo March 15th, 2011 at 3:05 pm
I want others pay more for what they buy. Imports should be cut off, even if they are only from New Jersey. But, more importantly, competition should be tilted in the direction of the mom and pop store to avoid what has happened with supermarkets — cheap food and workers being oppressed. After all, the poor in American eat too much and are too fat. And the workers are as poor as the Mexicans.
makethewho? March 19th, 2011 at 10:02 am
Im glad make the road spends more money on purchasing those tshirts than actually doing real work. i love how they bribe people to go to these meetings.