Wal-Mart stands amid praise and lawsuits in Puerto Rico
- Originally published by the Associated Press on Wednesday, August 11th, 2004.
By Leonardo Aldridge
SAN JUAN (AP) -- The Puerto Rican Chamber of Commerce on Tuesday came
out in staunch defense of the Wal-Mart interest on the island and
declared that the decline of small business cannot be blamed on a
single company.
Those views, given by Chamber of Commerce vice-president Cirilo Cruz,
diverged from those give by the Association of Community Pharmacist and
an independent economist, who assured that the expansion of the
meg-store chain on the island has had harmful effects on the economy.
Before the House Economic Development and Planning Committee, Cruz said
that "no small retailer goes under simply because a bigger chains
enters its market," and reminded that the chamber of commerce opposes
protectionist measures.
Cruz warned that campaigns directed at individual companies, mainly by
competitors, send foreign investors the message that they are not
welcomed to do business on the island.
"We are telling foreign businesses that wish to do business here to go home, that they are not wanted here," said Cruz.
The Economic Development and Planning Committee chair, Ferdinand Perez,
said he plans to meet with all the parties involved in the dispute to
ascertain the effect Wal-Mart and its subsidiaries, which include Sam's
Club and Supercenter, have had on the local economy.
In Tuesdays hearing, a study by economist Jose Alameda, said that
Wal-Mart's expansion between 1993 to 2002 cause 86 retailers and
wholesalers to go bankrupt.
"Our estimate is that for every $15.8 million in sales made by Wal-Mart
one small to medium business in Puerto Rico goes under," reads
Alameda's study.
The Association of Community Pharmacist president, Julie Hurtado, said
Wal-Mart has solicited permits, thru its subsidiary supermarket chain
Amigo, to establish pharmacies. Reneging on a pledge not to open
pharmacies in Amigo supermarkets.
Hurtado blamed Wal-Mart for the closing of dozens of pharmacies who
could not compete, due to the megastore's ability to buy products in
larger quantities which allow to offer consumers lower prices.
"I'm saddened by the fact that La Fortaleza missed the opportunity to
curve Wal-Mart's growth in the island, I am left wondering whether if
anyway will save us from this economic extermination we are going
through," said Hurtado.
Hurtado referred to the green light given by outgoing Secretary of
Justice Anabelle Rodriguez to the Wal-Mart/Amigo merger, with minor
restriction that are being minimally enforced.
Business sectors have criticized Rodriguez's decision to allow the
merger, even when, to their knowledge, it violated anti-trust laws in
Puerto Rico and 20 states stood in solodidarity with the island against
the merger.