Big-Box Swindle

September 11, 2006
Mitchell, chair of the American Independent Business Alliance, has produced a compelling indictment of Wal-Mart and other "big box" stores, based on numerous national examples. Deep-pocketed chains like Home Depot flood the market to drive out competition, she points out, then advertise some products at or below cost, while most other products may offer no better value than at independent stores. Meanwhile, she argues, independent businesses not only return profits to local communities and remain more civic-minded and accountable, but offer resiliency rooted in diversity, in contrast to the big-box "monocrop." She even provides evidence that Wal-Mart lowers, rather than boosts community economic well-being, and that firms with fewer than 100 employees give twice as much in charity per employee as those with more than 500 workers. Mitchell challenges Chris Anderson's Long Tail theory, suggesting that an indie bookseller's passion about a product can be more critical to its sales than wide access via a Web retailer. Mitchell catalogues diverse ways indie-minded consumers can fight back, by campaigning against government subsidies to big-box stores, and advocating for sales tax collection on Internet sales and stronger antitrust enforcement. Visible citizens' coalitions can fight big-box expansion, especially if communities fine-tune their land use policies. The big-box trend, she suggests, can be countered by increasing public awareness.