Thursday, May 27, 2010

Costco= Home Depot

Looks like there's an argument brewing down in Ukiah about a proposed Costco coming to the area. I've heard some rumblings about this in the Ukiah Daily Journal before but I believe this letter to the editor is the the first I've seen in opposition. Does his argument sound familiar?

7 Comments:

At 8:55 AM, Anonymous Anonymous said...

That letter makes a vague all-encompassing quality-of-life argument. That's not what I hear from the anti-Wal-Mart crowd. Their argument is economics, and the more informed among them have data to back their positions.

My take is that we have to learn to live with big boxes. To that end, I support 'good' big boxes such as Costco that pay their employees living wages. Costco pays career-level wages. Wal-Mart? Umm, not by a long shot.

 
At 9:40 AM, Blogger Fred said...

While I appreciate the concerns about quality of life, I also find it ironic that Costco is probably one of the most visited businesses in Eureka. That, along with Winco.

As far as economics go, that works both ways. A few of the Topix comments to the letter point out- and I've pointed out here before- that many smaller businesses often depend on big box type stores to stock their own shelves since the large stores often sell things even cheaper than a smaller store can buy them from the distributors.

I mentioned here some time ago some lady that was clogging up the line at the Eureka Winco. She was telling me she had a small mom and pop type store and they bought nearly all their food items at Winco as it was much less expensive at Winco than if they'd used the standard distributors.

 
At 9:52 AM, Blogger Fred said...

Oh. As an aside, I noticed the other day they're beginning to demolish the old Sherwood Forest Nursery across from the Eureka Safeway at Harris and Harrison. This being done to make room for the new Safeway superstore. I was told they'll be taking all the medical buildings out between there and Walgreens to make room for it.

I was disappointed to hear they won't be selling gasoline. Some fire department guy told me that.

 
At 10:52 AM, Anonymous Anonymous said...

Fred, that's simply not true. Restaurants buy food supplies from big box stores, but show me a shred of actual credible evidence that retailers buy from big boxes and flip the sale in their stores. Any such store wouldn't last very long.

 
At 12:29 PM, Blogger Humboldt said...

I only know of some of the outlying little country stores that do that to some extent. I definitely know of some local restaurants that buy truckloads of stuff at costco- I don't have any idea of what percentage of their overall purchases that represents. But it's bunches of stuff.

 
At 1:52 PM, Blogger Fred said...

show me a shred of actual credible evidence that retailers buy from big boxes and flip the sale in their stores.

I'm not saying allretail stores by their goods from Costco or Winco. I am saying that a some of the teeny mom and pop stores do. They can't buy in large enough quantity through regular distributors to make it work.

Winco enables a number of smaller stores (and restaurants) to stay in business.

 
At 7:30 PM, Anonymous Anonymous said...

are you kidding anon. Just go to cash/carry and compare prices to Costco. Then stay in store and watch the retailers buy supplies form Costco and product. It a simple thing. Plus with Amex card you get back another 2-3 %.

 

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