This just in: Forget the glistening ocean, rows of towering coconut trees that provide shade upon the island’s beautiful beaches, or perhaps even the sight of a rare sea turtle’s silhouette gliding through the crystal clear waters. Because now, as airliners tip their wings on the final descent to the island of Guam, vacationers can now peek out their windows to revel in awe—over the sight of the second largest Home Depot in the world. Well, at least according to a number of Guam’s highest dignitaries.
Liuetenant Governor Mike Cruz believes that given the store’s location along Airport Road, tourists will have the great opportunity to “see a slice of Americana” as they approach the island by plane. Overly excited, local lawmakers even drafted a resolution to mark the opening of “the second largest Home Depot in the World.”
The Home Depot’s soft opening brought about a significant degree of fanfare to the island as a number of local residents and dignitaries alike eagerly waited to be one of the first to walk through the doors just moments after the final snippet of the ribbon’s cutting. Home Depot enthusiasts applaud the store’s opening; many are excited over the variety of items that the store carries and at such a low price—for many local business owners, however, perhaps at too low of a price.
At the store’s soft opening, some residents capitalized on the chance to score a number of picnic chairs at the unbelievably low price (for Guam) of $5 dollars a chair. Others searched for other bargains, quickly filling their carts. Items being sold at a fraction of what consumers are usually used to paying is usually a blessing for most. However, for the more skeptical and perhaps knowledgeable few, the enormous slashing of prices forebodes none other than disaster for competition.
Just years ago, Kmart opened its doors to the island offering their products at incomparable prices. Sure, every individual who walked out of the store remained enthused over the store’s bargain like prices in comparison to that of other local stores. Unable to compete with Kmart’s prices, many local businesses were forced to scale back or close, thus adding to the long list of casualties throughout the Kmart driven price war. Monopoly became the name of the game.
It has happened once, and it will definitely happen again. Huge American corporations with deep pockets have the power and financial backing to cut prices to such an extent that other businesses just cannot compete. Once the last formidable market competitor is finally driven to closure, prices magically begin to increase at a much quicker rate—too unproportionate to place the blame on inflation. With the opening of Home Depot, it is likely that this Kmart curse that once plagued the island has returned to elongate the business casualty list.
Only this time, Home Depot will do it, and local leaders and unsuspecting residents will be there to help.
Saturday, November 17, 2007
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2 comments:
There is a hilarious South Park that talks about the WalMart effect in Season 8. It perfectly illustrates all the concerns you brought up and also happens to be one of the best episodes in the show's eleven seasons.
Interesting that you brought that up; I actually saw that episode. I would really hate for Guam consumers to react in a similar fashion to the Southpark residents.
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