MIKE MASTERSON: Costs of efficiency

Small-town woes

I read last week about Wal-Mart's decision to close 154 stores in 27 states, and a total of 269 worldwide. That caused me to consider the dire consequences their decision has had, not only on thousands of employees and their families, but on many smaller communities.

While the decision equates to an improved bottom line for the Godzilla of retailing, the stores it has shuttered mean locals will have fewer, if any, options or choices for fresh groceries nearby. Then there's the matter of what happens to economies in the affected towns, 11 in Arkansas, which include Van Buren, Gentry, Decatur, Gravette and Prairie Grove in Northwest Arkansas alone.

Other Arkansas communities with stores closed include Mansfield, Damascus, Charleston, Coal Hill, Maumelle and Mulberry.

The types of stores closed included 23 Neighborhood Markets, 102 Wal-Mart Expresses, 12 supercenters, four Sam's Clubs and six discount centers.

I believe the resulting problems for small-town America is best typified by little Whitewright, Texas, north of Dallas. Only a year ago folks there were celebrating the opening of their spanking new Wal-Mart store. Whitewright, with just over 1,600 residents (larger than Flippin) has steadily lost population over the last decade from its high of 1,740.

Before the new Wal-Mart began serving and employing locals, the good folks of Whitewright had relied on Pettit's market for their foodstuffs. That family-owned grocery couldn't possibly compete with the world's most influential retailer, so Pettit's locked its doors after 60 years of serving the town.

That sort of loss often happens when Wal-Mart arrives in the smaller towns. But a year ago much of Whitewright was pleased to have its very own one-stop shopping at reasonable prices under a single roof.

Today, those same Whitewright citizens are left with an hour's round-trip to stock up on groceries and produce. And I'm betting they're all wishing they had their once-reliable Pettit's back. The price of honing efficiencies in any corporation can be brutal to the people who enable them.

"The decision to close stores is difficult and we care about the associates who will be impacted," read a release from Wal-Mart's executive offices. "We invested considerable time assessing our stores and clubs and don't take this lightly. We are supporting those impacted with extra pay and support, and we will take all appropriate steps to ensure they are treated well."

CEO Doug McMillon said, "Actively managing our portfolio of assets is essential to maintaining a healthy business. Closing stores is never an easy decision. But it is necessary to keep the company strong and positioned for the future."

Wal-Mart expressed its sympathies, as its decision-makers strived to find displaced employees spots in other locations while planning for some 300 new stores worldwide.

It's obvious to me the loss of good will in the affected communities across Arkansas and America can't help but be an unseen, yet predictable, price for Wal-Mart's sweeping corporate decision. Wal-Mart had arrived to displace many mom and pops (like Pettit's in Whitewright) who folded because there was no way to compete.

So now what?

Chicago in Branson

While at my age I've never been much for carnival rides that tilt, rock and jerk, all at serious heights, I'm seriously considering a spin on the historic (yet new) ride that for decades graced Chicago's famous Navy Pier.

My friend, Lynn Berry of Eureka Springs, who directs communications for the Branson Convention and Visitors Bureau, sent a message last week saying her popular getaway city for thousands across our state, especially nearby Northwest Arkansas, has acquired the 150-foot-tall Ferris wheel that was the dramatic and much photographed focal point on the Windy City's Navy Pier.

By this summer, the 240-passenger Ferris wheel with 40 gondolas will become the city's newest landmark along busy Missouri 76.

If I do decide to board this charming piece of history to be slowly lifted, rocking into the clouds, rest assured it will be well after lunch and before dinner. Just sayin'.

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Mike Masterson's column appears regularly in the Arkansas Democrat-Gazette. Email him at mmasterson@arkansasonline.com.

Editorial on 02/02/2016

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