BajaNomad

Wal-Mart Fights to Build in Cabo Paradise

BajaNews - 10-25-2006 at 08:11 PM

http://www.chron.com/disp/story.mpl/ap/fn/4288210.html

Oct. 25, 2006
By MARK STEVENSON

CABO SAN LUCAS, Mexico — Wal-Mart Stores Inc. apparently has no place in paradise.

The world's largest retailer won preliminary approval on Tuesday to build a store in Cabo San Lucas after an almost two-year battle, but opponents vow to continue fighting the project with demonstrations or by blocking roads.

The Los Cabos city council voted unanimously to give conditional approval for the store, requiring it to be nonintrusive, pass environmental studies and not excessively affect traffic in this fishing and resort town of about 80,000 at the tip of the Baja California peninsula.

Residents and shopkeepers, however, fear that the store _ first proposed, and rejected, at a site near the middle of the city _ could harm the resort town's laid-back atmosphere, where sports fishermen and tourists mingle with locals on the narrow streets.

Some are also worried that the store, or a proposed highway overpass for it, might replace the trademark stone sea arch as the first view people have when they drive into the city.

"If we have to hold demonstrations, we'll do it, and if it comes to that, block some of the access roads" to Cabo San Lucas, said Sebastian Alvarez, leader of The Union of Organized Businesses, a group of 350 small shopkeepers.

"We are very angry that they're favoring such a big company, without realizing that this is going to affect the people who live here, the small businesses, in a big way," Alvarez said. "The economic impact is going to be fatal, and that has been proven in many parts of the world."

Mayor Luis Armando Diaz, who governs both Cabo San Lucas and its twin city, San Jose del Cabo, said he believes the city council acted correctly in voting to give preliminary approval.

"I think we balanced out the (competing) interests," said Diaz, noting that two years ago, the city rejected a plan for a Wal-Mart store near the center of Cabo San Lucas.

But Diaz also said Wal-Mart may have to build highway overpass at the new site to handle the increased traffic, which could interfere with some views of the stone arch, a rock formation that reaches into sea.

Wal-Mart says the new store will be an important part of its Mexico operations. "We are convinced that we have a something valuable to offer Baja California Sur," said Antonio Ocarranza, a spokesman for Wal-Mart de Mexico, "and that our contribution to the community will be positive."

He said that Wal-Mart would "integrate into our development plans anything we need to, to answer the concerns of the city council," and indicated that the store would probably be part of a mall, not a stand-alone.

Regarding the fears expressed by small business owners, Ocarranza said that "we not only generate benefits for our customers, but also for businesses, who benefit from the traffic generated by our firm."

There are already Home Depot and CostCo outlets on the same highway near the proposed site, but neither has an overpass and it's unclear whether the Wal-Mart store would be larger than those stores.

Wal-Mart must still submit environmental impact and water studies before city officials grant any building permits. The proposed site is next to a dry riverbed that captures much of the area's sparse rains.

"We have asked them for an architectural design that won't severely impact the traditional style of the area," Diaz added.

But Alvarez said that in any form, the big-box store will finish off the small-shop atmosphere, the city's economic mainstay.

"I think that the councilmen haven't yet realized that (Wal-Mart) will, in less than a year, cause the disappearance of the small stores that have contributed so much to the development of this area," he said.

In 2004, another Wal-Mart-owned discount store quietly opened less than a kilometer (mile) from the ancient temples of Teotihuacan, just north of Mexico City, despite months of protests claiming the sprawling complex was an insult to Mexican culture.

Alvarez said that isn't going to happen in Cabo San Lucas without a fight. "Los Cabos isn't Mexico City," he said. "I think this is just starting, and we're going to get tough."

Paula - 10-25-2006 at 08:34 PM

Instead of a highway overpass I would like to see an underpass required to the first subterranean Wal-Mart.
I would also like to see an ordinance dissallowing signs at the entrances of underpasses.
And then I would like to see the permit denied, because I think it is so sad to see American (or any other) mega-corporations springing up all over the world.:(

Bruce R Leech - 10-26-2006 at 07:35 AM

It isn't all bad when the big box comes to town. sure some of the small shop owners are not going to like it. usually because they wont be able to get away with the price gouging they have been doing for years. and some will close. but for the consumer it is good. better selection and lower prices etc.etc. Cabo has gone from a very small town to a large city in just a few years and to do that and not expect to have changes is crazy. all of those people that are working to make things nice for everyone in Cabo need to buy things and food for there families and they cant afford to get it at the Fancy stores where the vacationers shop.

Don Alley - 10-26-2006 at 07:50 AM

OK, so I guess in my trips to Cabo I missed the part with the "laid back atmosphere." Also the "paradise" part. Or maybe they're talking about the area around the arch with all the boat traffic. Hey, instead of an underground Walmart, how about a floating Walmart?

I shop at Walmart. Oops, no dinner for me tonight.:lol:

Paula - 10-26-2006 at 07:56 AM

I guess Don will be dining at the Burger King in La Paz.:biggrin:

chino - 10-26-2006 at 08:22 AM

I'm with you Don I missed the" laid back atmosphere", I guess to each their own, maybe a wal-mart would bring some cheaper prices on day to day items for the locals?
Like the marina at Santa Rosalillita, it's good for some and bad for others, I would prefer to not see a paved road and a marina at my once upon a time surf/camp/fishing spot. Maybe the new marina will function and benifit some, Shari's friend has already benefited from the paved road.
I guess I would rather see a wall-mart along I-5 in the valley at 80 mph than in a beautiful spot?

NIMBY......

Cypress - 10-26-2006 at 08:26 AM

Wal-Mart.:yes:My favorite place to shop!:tumble: Folks in the Cabo area need all the help they can get.:tumble: Prices there are higher than in many parts of the US.:(

Loving Walmart

MrBillM - 10-26-2006 at 09:25 AM

Face It . Walmart isn't building stores in Mexico to sell products to the Gringos who moved to Baja. As others have pointed out, those expatriots in "Paradise" represent a small portion of the populace.

Whenever I go to Walmart in Mexicali, it is Packed with Mexicans, just like the MacDonalds, Burger King, Pizza Hut, etc. It's their country and, if they are happy shopping at Walmart, what Foreigner has the right to complain ?

comitan - 10-26-2006 at 10:12 AM

Bill

Tell me why they built a Costco and Home Depot in Cabo that has a population of 80,000 with a high majority of Gringos. They could have built those stores in La Paz population 250,000 mostly Mexican. It doesn't seem cost effective unless they were targeting the gringos, which every time I'm in those store there are many.

Demographics

MrBillM - 10-26-2006 at 11:07 AM

I don't have access any to official demographics for the Cabo area and the various "estimates" I've seen are for a population of 100,000 with the "Foreigners" making up around 30,000 of (or in addition to?) that number. Since most of what I see is from development interests, who knows how accurate that might be. In any case, I have no documented knowledge regarding the Walmart decision so It is impossible to know exactly what they intended. I do know that their planners have an excellent track record of defining their market.

In any case, I don't believe that the Foreign population would make up a "High Majority" of the population. To do so, they would have to constitute 60 % of more of the total.

On the other hand, If we are to accept your argument that it is being built primarily for the Expatriot population, then that would indicate that the "moaners and groaners" among that population are very much in the minority.

Paula - 10-26-2006 at 11:44 AM

My guess is that big-box stores and chain restaurants are built to appeal to ex-pats and tourists. The local population is seduced by low prices and availability of things previosly unknown. They like them, and patronize them. Many Americans who have enjoyed them are becoming disenchanted, and that could happen here too. I've noticed prices creeping up in the large stores as they corner more of the market. As local businesses become a thing long gone, prices will rise, selection will narrow, and profits will soar for the corporate biggies. The consequence will be a generic and bland world. Less local culture, less art, less enjoyment of life.

Cypress - 10-26-2006 at 12:19 PM

Paula. I'm guilty of being seduced by lower prices.:?:

Paula - 10-26-2006 at 01:15 PM

I am too, Cypress. That's why I know that Target's "low prices" are approaching the prices at more luxurious department stores. And they'll go up at the others too.
A nice Mexican family opened a taco stand for the summer in our Montana town, and lunch there was so much better than a Big Mac Combo at 1/3 the price.
And have you ever been so seduced by those bargains that you bought a whole bunch of stuff you never even wanted just because it was so cheap?

Sometimes less nice stuff is better than lots of cheap stuff. Or should that thought be on the wine thread?:dudette:

But sometimes a little cheap stuff is all we can afford.

Al G - 10-26-2006 at 01:21 PM

Low price seems to be the theme of this thread and would be interested if this is actually true. I have shopped in San Lucas Costco twice. The first time, the prices were so high I only bought a bottle of tequila. When I got to Todos Santos I found the same bottle for 50 Pasos less. The next trip down, My friend arrived later and I picked him up at SJD. He insisted we stop at Costco, because I must have been wrong. We left without buying a single thing. We bought a large load of supplies at CCC. Here in Concord CA, I buy maybe 70% at Costco....Some basics at Wal Mart.

Iowagal - 10-26-2006 at 01:34 PM

http://www.smalltownproject.org/expanded-annotated-links/

Don't know if this site will help, but Wal-Mart isn't comming to Mt Vernon Iowa.

bajalou - 10-26-2006 at 01:50 PM

In Mexicali almost all of the patrons that I see in Costco, Sam's Club, and Walmart are Mexican. If these were built for the American/Canadian population someone forgot to tell the local Mexican people.

Cypress - 10-26-2006 at 01:56 PM

I'm confused. My head hurts.:rolleyes:Trying to understand. It's better to pay more at places other than Wal-Mart because Wal-Mart is gonna raise prices at some point in the future?:?:Do I smell a conspiracy here?:O:D

comitan - 10-26-2006 at 01:59 PM

For me going to the Costco in Cabo, is to get things that the other stores here don't have. One example sourdough french bread.

[Edited on 10-26-2006 by comitan]

Iowagal - 10-26-2006 at 02:16 PM

It's the convenience for me. Everything you need under 1 roof, plus alot of stuff you never knew you needed. Wal-Mart has become so convenient here that I can choose form 6 super sized stores all with in a 25 mile drive and I live in a rural area. I have no idea if the impact in Cabo would be good or not just that you should choose wisely.

Paula - 10-26-2006 at 03:00 PM

Quote:
Originally posted by bajalou
In Mexicali almost all of the patrons that I see in Costco, Sam's Club, and Walmart are Mexican. If these were built for the American/Canadian population someone forgot to tell the local Mexican people.


What percentage of the population there is American/Canadian?

Earlier I guessed that big stores are built for a particular part of the population. Well, DUH... they are built for profit, and welcome all shoppers.

I do sometimes shop at Costco, Target and even the feared and loathed (by me) Wal-mart. My question is this: is it really a good thing to have tons of great stuff at unbelievably low prices under just a few identical rooves all over the world? At what point do cultures lose their identities to the generic product so realdily available? What is the long range impact of these businesses on the world economy? The environmental impact of producing more of everything than the world requires, and the fuel wasted by lots of people driving many extra miles to save a buck?

I'm not a social scientist or an economist or even an especially wise and educated person, but my instincts tell me that more locally based economies may in the long run be the better choice for humanity. And the decisions should perhaps be made by everryday people.

Big Box Love

MrBillM - 10-26-2006 at 04:49 PM

IF the Big Box stores and the U.S. Fast Food restaurants build and the (local) people DO come, then any local business that can't survive on a loyal customer base doesn't deserve anyone's tears. It's just Economic Darwinism and it is inevitable. Enjoy the past while you can.

Cypress - 10-26-2006 at 05:01 PM

Guess we can wax on the philosphy of it, but it all boils down to dollars and sense.:bounce:

Paula - 10-26-2006 at 06:50 PM

"Enjoy the past while you can"

I do like to live in the past, and I'm not even really old

:lol::lol:

Dave - 10-26-2006 at 10:37 PM

Quote:
Originally posted by MrBillM
On the other hand, If we are to accept your argument that it is being built primarily for the Expatriot population, then that would indicate that the "moaners and groaners" among that population are very much in the minority.


If COSTCO & Wal-Mart were intended primarily for the expat community they would stock their stores with the SAME product you can buy in the States. They don't. For the most part, the products are Mexican equivalents. Second rate stuff. That's why most Mexicans, at least in the border areas, shop at sister stores in the States.

Attn: Walmart Shoppers

MrBillM - 10-27-2006 at 08:39 AM

It is True that the Walmart in Calexico is the Busiest I have ever been in and the majority of vehicles in the Parking Lot have Mexican plates. However, the Walmart in Mexicali has always been packed with natives when I've been there so it seems to be a win-win proposition for Walmart. Dave is correct on the products, though. There are many things that I buy from Walmart in the U.S. that just aren't stocked in Mexico.

bajalou - 10-27-2006 at 08:45 AM

I have been told that Walmart Calexico is the busiest Walmart in the US based on size. (at least the old one was).

comitan - 10-27-2006 at 08:53 AM

When you live in BCS you do not have the option of going to the other side to do your shopping, and yes I have been told Walmart Mexico has mostly Mexican items. The Costco & Home Depot in Cabo have many US items could not give you a percentage.

The BIGGEST

MrBillM - 10-27-2006 at 09:06 AM

I have a friend who works for Walmart in Yucca Valley and I once asked him if there was any way he could find out which store had the highest volume. He replied that they have the sales figures available to the employees and brief them in meetings on a regular basis. At my request, he inquired and the Calexico store did have the highest sales volume.