Curb on Big-Box Grocery Sales Would Harm Competition
The Ventura County Board of Supervisors is considering an ordinance that would dramatically impact Ventura County consumers, their shopping choices and their wallets. As one of the large retailers targeted by the ordinance, Wal-Mart would like to clarify its position.
The ordinance would severely limit the sale of groceries by big-box retailers such as Wal-Mart, Target, Sam’s Club and Costco. It is being pushed by the United Food and Commercial Workers International union and California’s largest supermarket chains. Their attempt to restrict the sale of groceries at big-box retail stores is an attempt not only to limit but to eliminate competition.
If the union and supermarket chains have the power to dictate what merchandise other types of retail stores can carry, competition will suffer and consumers will too.
As Wal-Mart sees it, the fundamental issue is consumer choice. Ventura County residents deserve a choice, and we believe we should be able to provide our customers with that choice--the goods and services they want.
This ordinance is bad for consumers. That’s why the union is trying to cloud the issue, arguing before the Board of Supervisors that the board should limit the sale of groceries at big-box stores because these stores buy produce offshore.
That argument is deceptive. Both supermarket chains and big-box retailers buy produce offshore. Some crops grown in the United States are seasonal and not available year-round. During those times, grocery stores look to markets outside the country to meet the demands of consumers.
Peaches are an example. In early spring, when peaches are not readily available domestically, grocery stores typically buy them from other countries such as Chile. In general, when Wal-Mart is buying peaches from Chile, so are Vons, Ralphs, Safeway and other chains.
It may surprise some people to know that in most instances and at most times of the year, importing produce is more expensive than buying it domestically.
Although Wal-Mart like other stores, imports produce at certain times, our company’s commitment is to buy produce locally and regionally whenever possible. Wal-Mart is one of the top five buyers of California produce, with suppliers in Ventura County such as Mission Produce in Oxnard. We also buy from other California growers, such as Sunrise Growers, based in Placentia, which works with approximately 25 Ventura County growers.
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Wal-Mart is proud to serve Ventura County residents with a Wal-Mart store in Simi Valley, and a Wal-Mart and Sam’s Club in Oxnard. Our Ventura County operations employ more than 700 people and paid more than $1 million in local sales tax revenue and more than $250,000 in county sales tax revenue last year--money that supports vital services and programs.
Our company offers competitive wages, comprehensive benefits and excellent advancement opportunities. About 70% of our employees are full-time. Both full- and part-time employees are eligible for benefits, including medical coverage, 401(k) retirement plans, profit sharing and a stock purchase plan. In addition, 65% of our California management team was promoted from within.
Our stores also believe in giving back to their communities and supporting local organizations through grants, scholarship programs, volunteer projects and other fund-raisers. In 1999, our California stores donated $6.8 million to community organizations and schools.
In Ventura County last year, our stores made contributions to groups including the Boys and Girls Club of Simi Valley, Salvation Army of Oxnard / Port Hueneme, Simi Valley High School, Cesar Chavez School, Simi Valley Police Department, Youth Theater for Ventura County, and Ventura High School Music Boosters.
Wal-Mart stands proudly behind its record and staunchly behind its customers. We support consumer choice and urge the Board of Supervisors not to adopt this ordinance. We hope the board is guided not by special-interest groups but by the interests of Ventura County consumers.
