I get so disheartened each time I hear of some big corporation buying out another one. I suppose it's not really a monopoly because there are still more choices than just one, so it would be an oligopoly. (Doesn't that word sound profane?) I hate that corporations and their subsidaries dominate our whole country, driving up prices and decreasing our choices. It seems this way in every line of business.
It has bugged me for a long time that here in Norman, and Oklahoma in general, we have such limited options to buy groceries. When we moved to Norman, I went to Buy-4-Less but that disappeared. The grocery store down the street from us has changed hands nearly every year. I've heard of a store named Crest and another named Aldi but they are about an hour away from Norman. There are two IGA Superthrifts left but it's a wonder they are still in business because I've never seen any customers in either store and they are filthy and overpriced. There are two Albertsons here which were the most expensive until Target turned into a SuperTarget (which has the most limited selection of brands). I never saw anyone at those Albertsons either. And then there are the two Homelands here which I like only because they double your coupons and carry a variety of brands you can't find anywhere else. Again I never see many people there either. All the customers are at Target or Walmart, mostly Walmart.
I just found out that Albertsons is leaving Oklahoma, "shedding 23 stores," 7 of which will be bought by Homeland. First of all, I never thought Alberstons would fail as those who avoid Walmart shop at Albertsons. Alberstons is deamed the upscale grocery store here so the shiney new SuperTarget was able to steal it's business. But then why would Homeland take over the failing Albertsons when the customers have already gone somewhere else? Secondly, why would Homeland install themselves in a town that already has two of themselves there already? FOUR Homelands in this Walmart-loving town?
I can't believe Homeland hasn't gone under yet here. I thought they had only remained because they were a regional chain (OK, KS, MO) so they could stand some loss in a town like Norman. I still don't think it'll fly. Walmart still remains cheaper for those who don't use coupons (and even for those who do) and it's just so much more convenient when you want to buy more than just groceries. But if they are planning on installing another 2 Homelands in this town, they must be doing better than they appear.
Whatever the case, I hate seeing so many businesses going under. Unless it's a franchise or a chain, businesses can't survive in Norman. Maybe that's the case everywhere. But we have so many vacant buildings and we see so many businesses open their doors only to close them again within a year. Except for churches. Mom and Pop Churches can thrive here -- that's what abandoned grocery store buildings are for!
1 comment:
I don't think that the oligopolies that make up most of American economics actually drive up prices. Consider the national hourly minimum wage, and compare that to the cost of the kinds of typical things you get at Wal-Mart or at the grocery store. How can they possibly afford to sell bananas for less than a dollar per bunch? Think of all the work involved in growing them, harvesting them, packaging them, shipping them, and keeping up the store where you sell them. Or a box of pencils. Or a cheap plastic timer (which I recently bought for a dollar something). It amazes me that you can buy stuff for so cheap. The only way I can explain it is either (a) they make it in china where people work for peanuts, or (b) they make them on machines, so that a finite amount of human labor produces a machine that can make millions of copies for very little additional human labor. Neither of those things is very convenient for small businesses.
Contrast with anything that requires a human to give you personal attention, like a plumper tightening a bolt on your toilet, $100. That's because the government gets maybe $40 of that, and the gas he used getting to your house might be another $5, plus the rent on the building he works out of, the secretary that answers the phone while he's at someone's house, and so on and so forth, and at the end of the day the plumber might only get $20 for the hour that it took him to get to your house, tighten a bolt, and get back to the office.
In my opinion, the number one force that drives prices up these days is the government, which takes a huge toll out of everything and wastes unimaginable amounts of money doing things it should have nothing to do with.
But that's just my opinion.
Johnny
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