Stealthy Retail Growth

I challenge anyone to read a sampling of newspapers in America, Europe, and the Far East and not find a story about Wal-Mart. The big box discount retailer is always in the news, garnering both good and bad press. The good press, usually driven by the local population, hails new job openings and increased availability of a multitude of products at affordable prices. The bad press, usually driven by national union and environmental advocates, disparages Wal-Mart for the lack of union representation, for the demise of locally owned shops because they can't compete against Wal-Mart, and for the litany of customary environmentalist complaints against anything that's associated with civilization. Simply put, through widespread condemnation and commendation, Wal-Mart is newsworthy.

The overwhelmingly massive amount of news coverage on Wal-Mart is also noteworthy. It literally sucks away any reasonable press interest in the success being achieved by other companies. Pretty much ignored is the recent growth and handsome return being realized by Home Depot, Kroger, Target, Costco, Walgreen, and others. With the spotlight on Wal-Mart, the success of others in the retail industry go largely unnoticed by the media and the general public. And, without the heat of the spotlight, other companies also benefit from not being thrust into contentious and expensive negotiations on a variety of state, local, and community issues. Others see additional benefit by being able to piggyback onto Wal-Mart's success in some locations while avoiding those locations that prove to be too expensive or too difficult.

In the United States, a country where it's estimated that the activist-to-issue ratio is approaching 1:1, it's no small favor that Wal-Mart is doing for the retail business world. Strategic planners are well aware that a measure of stealth during expansion and growth can forestall potential collateral costs. If a store can be up and running before the local moonbats have organized, total startup costs will be minimized. With Wal-Mart shining so brightly and fielding all the complaints, the exciting growth of other companies can be hidden in plain view. For this, Wal-Mart deserves a Thank You card.