Dear Editor:
After reading the Wal-Mart open letter to the Gilroy Community,
I felt a need to speak out.
Dear Editor:
After reading the Wal-Mart open letter to the Gilroy Community, I felt a need to speak out. My credits come from living in Gilroy for over 40 years and working in the food industry all my working life. Wal-Mart belongs in Gilroy, as does any legitimate retailer in this country. The reason should be obvious. Wal-Mart prices are always far below most other retailers mainly because of buying power and margin mark-ups. Their service levels are mostly in advertising, however, they seem to loose some of that service at store level. But the bargains are there.
When Wal-Mart vacates their existing building it should be not a problem. Real estate opportunities will take its course. The incentives for their new building are not applicable because they have already received incentives on their existing building. Their grocery operation has been successful, but has not cause blight in communities of Gilroy’s size. Retailers like Nob Hill and Safeway will adjust to the loss of sales. Having been involved in this exercise for 30 years, believe me, they will adjust. Nob Hill and Safeway are solvent because of logistics – they are on the west quadrant of Gilroy, where most of the housing is being established.
Wal-Mart grocery pricing and services will be a warehouse operation – cheap prices (15 percent savings) on groceries but the quality of meat and produce are somewhat less than in conventional stores. Delis and Bakeries do not usually exist in their stores. Sales taxes in a grocery store only relate to about of 25 percent of sales but they have been up front on their assessments. The 500 jobs are realistic, but being a non-union environment they will pay a lesser rate than competitors. Their competitors will adjust because non-union is not new and it has been an obstacle in our industry. Is it fair or not is a larger issue to discuss at another time.
It is my opinion that “Most Admired Company in the U.S.” list (quoted from the open letter) is most likely weighted to the southern region of the United States where they are the most prominent retailer in the country and where the Sears catalog and Wal-Marts are a way of life and choices are few.
Wal-Mart has every right to be part of the Pacheco Pass Center and will not be detrimental to Gilroy’s economies. If you think back about 10 years, the Pacheco Pass Center was going to be Garlic Town, the entertainment center of northern California. Let the east side developed. It won’t hurt Gilroy. Most of these big box retailers want to be here because of the location. Morgan Hill, San Martin and Hollister represent over 100,000 people and Gilroy is right in the middle. That’s why they all want to come here.
Unfortunately, the downtown is a problem that will never be solved until those second and third generation non-resident owners, get involved with the community. Their interest to invest in buildings and create downtown excitement just doesn’t seem to be here. Hopefully it will be there in a few years.
Jim Oteri, Gilroy
Submitted Tuesday, March 4 to ed****@****ic.com
