Landscapes and Sweatshops
As this Washington Post article (registration required) notes, “Both companies have deep roots in American corporate history.” Like many American historians, I think of Sears in near-iconic terms. It’s catalogue interlaced the American plains with the rest of the nation as rapidly as rail line could be built.
Memory reinforces history. Sears was an important source of my family's clothes, my brother’s tools, and even my toys growing up.
I don’t think of K-Mart that way, but I should. It’s innovations also mark our history and my life. As the same article notes, K-Mart pioneered the big box stores that mark American suburbs, exurbs, and even downtowns now. In architecture it was a big step toward what I think of as disposable stores: buildings built with a limited life span that minimize the corporation’s investment in a community.
By the time I hit college, K-Mart and some of its imitators had become important sources of the cheap stuff that I bought. Years later, when I bought my first house, I got the new frig—the first large appliance I ever bought-- from K-Mart.
Wal-Mart has taken K-Mart’s innovation to a whole new level, of course. Cheap stuff, disposable buildings. Disposable communities.
Disposable lives, too. Another Post article today discusses the way new WTO rules are going to help China suck jobs away from its Asian neighbors. The"how" of this is simple. China’s government promises to help Wal-Mart and other international beneficiaries sweat the last possible penny out of people who makes pennies.
Of course the new Sear’s Holding Corp. (a grey name, isn’t it, for a marriage of convenience) will also benefit from the cheaper prices, though they won’t be as cheap as Wal-Mart’s market share gets them. What they probably can’t match are either Wal-Mart’s efficiencies of organization or Target’s marketing panache.
I hope they make it, but doubt if they will. Or as my wife, who’s a far better economic historian than I am, put it when I emailed her the news,:
“Wow--I’m not sure which the merger will screw up worse: Sears or K-Mart. I wouldn’t invest in either one, that’s for sure.”
Postscript: Just back from shopping. Has anyone out there succeeded in buying Christmas lights not made in China lately?