Friday, May 30, 2008

October 11, 2007 - Development paradox puts Tier on hold

The question is as divisive as it is simple: Does Johnson City need a Wal-Mart?

From the forums on our Web site to water coolers around the Southern Tier, discussions about the proposed development of a second Superstore within 5 miles of the chain’s humongous Vestal location are a microcosm of an overarching issue: are superstores such as Wal-Mart responsible for the death of the Mom & Pop business?

Critics argue that the construction of a superstore will lower prices beyond levels that nickel-and-dime shops could compete with. While preservation of older, smaller businesses is beneficial to any community, affordable living is one of the main attractions for anyone considering moving to the area.

And although City Council and Mayor Matt Ryan are at odds over tax rates and other budget-related issues, the simple fact remains: the cost of living around Binghamton is among the lowest in the country. Especially for young workers (like myself) without tons of disposable income, it sure is convenient to get a lot of proverbial bang for the buck.

So when it comes to stocking the fridge every week, or picking up a light bulb, set of batteries or piece of furniture, the presence of superstores, such as Wal-Mart, helps me and the rest of the proletariat do so without breaking the bank.

These larger stores, as evil as they may sound, invoke the concept of the economy of scale, which states that having one larger store — instead of several smaller ones — decreases a lot of the inherent fixed costs. This, in turn, lowers prices — and subsequently, wages.

Keeping Wal-Mart out of Johnson City might keep open a handful of Mom & Pop shops around the town, but it would also preserve a sizable brownfield that in part represents the absence of development in the Southern Tier since the unfortunate end of the EJ era several decades ago.

It seems paradoxical that many of the same residents who lament the lack of economic growth in the area would reject the idea of bringing in a superstore such as Wal-Mart to Johnson City. A round-the-clock location would result in an influx of jobs to JC.

Meanwhile, the chain’s Vestal location annually brings in millions of dollars of business, and Vestal certainly hasn’t shriveled up economically. In fact, more and more locally owned businesses, such as Music City, are flocking to the Vestal Parkway.

Wal-Mart itself is the center of the Town Square Mall — a popular retail center that boasts a number of other successful businesses.

So as negotiations continue to possibly bring a second superstore to the area, it’s important to keep in mind the benefits of expansion — even large-scale expansion — in today’s quickly expanding economy.

Strub is a senior at Binghamton University and a part-time copy editor at the Press & Sun-Bulletin. His column appears Thursdays.

cstrub@pressconnects.com

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