One year later, the hotly contested placement of a Wal-Mart store in the middle of one of Chicago’s neediest neighborhoods has produced a mixed grade, depending upon who you ask.
In its first year in operation, the city’s only Wal-Mart store, the 150,000-square-foot establishment at 4650 W. North Ave., produced $5 million in state and local taxes and is credited by its supporters with drawing other retail enterprise into the community.
Ald. Emma Mitts, whose 37th Ward includes the Austin community where Wal-Mart is located, said even though the city store is a nonunion one, it has lived up to its word of providing jobs to the community, generating revenue for the city and sparking more economic development for the area.
“Wal-Mart has proven to be a strong, economic engine for the West Side,” said Mitts. “The store has provided hope and opportunity for many residents and for that I say thank you Wal-Mart.” Edward Walsh, manager of media relations for the Chicago Department of Revenue, declined to reveal how much Wal-Mart is taxed by the city.
Seventy percent of the 440 employees at the West Side store are Austin residents, according to a Wal-Mart executive. “We had 30 sales associates who transferred to the Austin store from other stores because they wanted to work close to home,” said Roderick Scott, Wal-Mart’s senior manager for public affairs in Illinois.
The average wage for associates is $11.32 an hour and that’s nothing to sneeze at [when you consider minimum wage in Illinois is $7.50 per hour].” However, those wages are below the “living wage” workers need, according to unions who led the fight in city council to block Wal- Mart from coming into the city. “We oppose Wal-Mart from expanding in Chicago because they do not pay a livable wage,” said Christine Boardman, president of Service Employees International Union Local 73 in Chicago.
“They try to say they pay an average wage but probably got that ‘average’ figure by including high paying managers.” She added that $12 an hour is a more competitive livable wage. Another union said health insurance is another issue with the retailer.
“Wal-Mart may say they offer health insurance to its employees but what they do first before offering insurance is to encourage employees to seek health insurance through Medicaid. This way they won’t have to pay for it, the taxpayers do,” said Michael Rossow, business representative for Teamsters Local 710 in Chicago.
“We absolutely oppose Wal-Mart from opening any more stores in Chicago and will fight even harder this time to keep that from happening. Wal-Mart is known for many things and one of them is taking away good paying jobs from union employees,” Rossow added. It is not known exactly how much money the store makes.
Scott declined to give sales figures for any of its stores. “That is not something a retailer likes to give out because it let’s the competition know what cards you are holding,” said Scott. “I can tell you that the Austin store exceeded our sales expectations and all of our Chicago area stores continue to record strong sales.”
The Benton, Ark.-based retailer now wants to build a second Chicago store on the South Side at 83rd Street and Stewart Avenue, Scott said.
“We are waiting on the city to give us the green light so we can proceed with plans to break ground,” Scott said. Arnold Randall, commissioner for the Chicago Department of Planning and Development said in a March 14 letter to Ald. Howard Brookins Jr., whose 21st Ward includes 83rd and Stewart, that he does not approve of a Wal-Mart store at that location because it was not slated in the original development proposal given to the city.
The North Avenue corridor is quickly filling up with businesses. New retailers include Bank of America, CVS pharmacy and Aldi food store. All came to the area within the last year and a Menards home improvement store is under construction.
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