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Home · Articles · News · News · The Big Box-Off
August 2nd, 2006 Jacques Von Lunen | News
 

The Big Box-Off

IKEA shows Wal-Mart how to be a big box with little opposition.

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When Swedish furniture giant IKEA broke ground for a new store off I-205 last Tuesday, Portlanders responded with a resounding "Skol!"

What a difference from the angry reception another big-boxer, Wal-Mart, has faced when it has tried to plant its flag around these parts.

Portland City Commissioner Sam Adams, Wal-Mart's loudest opponent in City Hall, told WW he welcomes IKEA because it gives back to the community, treads lightly on the environment and encourages customers to take public transportation. Wal-Mart, he says, does not.

But is IKEA really such a different big box from Wal-Mart? While Portlanders count the days until next year's IKEA opening (when they'll no longer have to drive 160 miles north to get their fix of the company's sleek Euro design), here's a scorecard that compares IKEA with Wal-Mart.

WORKING CONDITIONS

Wal-Mart spokeswoman Jennifer Holder says its Oregon employees make $10.44 an hour on average, which would work out to about $18,450 a year for a "full-time" employee (as Wal-Mart views anyone working 34 or more hours per week). About 70 percent work full-time, and benefits are available after a six-month waiting period. Wal-Mart critics say the company drives up average-wage data by including managers' salaries and exaggerating its percentage of full-time workers.

IKEA doesn't release pay or benefit information, but spokesman Joseph Roth says, "Co-workers are paid a living wage," with no waiting period for benefits. Fortune magazine reports that IKEA salespeople earn $18,300 a year. Unlike Wal-Mart, IKEA regularly makes Fortune's "Top 100 companies to work for" but slipped from No. 62 to No. 96 this year.

A side note: Both list China, nobody's top choice for worker-friendly conditions, as their No. 1 supplier.

IMPACT ON THE LANDSCAPE

IKEA's Portland store will be 280,000 square feet, making even Wal-Mart's largest Supercenters (185,000 square feet) feel downright cozy by comparison. But the combined total of all seven Portland-area Wal-Marts is 959,000 square feet.

IKEA gets enviro props, proclaiming it "only buys wood from managed forests, never from natural forests." Roth says all new IKEA stores, including the one in Portland, will seek LEED green-building certification by meeting energy and environmental standards. Wal-Mart has moved recently to improve building and truck fleet efficiency and has become the world's biggest seller of organic milk and organic cotton. IKEA doesn't offer organic cotton in its line of bed-wear.

IMPACT ON THE ECONOMY

Wal-Mart is the world's largest retailer, employing 1.3 million in the United States and more than 10,000 in its 29 Oregon stores alone. IKEA has about 10,000 "co-workers" in all its 28 U.S. locations.

On its biggest day, the day after Thanksgiving 2002, Wal-Mart grossed $1.43 billion, nearly as much as IKEA took in that entire year. IKEA's U.S. earnings were $2 billion last year, barely 1 percent of Wal-Mart's $191.8 billion.

CULTURAL CACHET

IKEA offers salmon plates and Swedish meatballs in its cafeteria-style restaurants; Wal-Mart rents out space to McDonald's and Subway. IKEA toys include "Ratta," the stuffed rat, and "Krabba," the stuffed crab. Wal-Mart offers "Barbie's Jammin' Jeep Wrangler" and John Deere toy tractors.

CONCLUSION

IKEA seems ahead of the curve on issues people care about. Nobody has tried seriously to unionize a U.S. IKEA store. Wal-Mart has faced numerous labor lawsuits and only recently began to clean up its environmental record. IKEA comes out looking like your friendly neighborhood store compared with Wal-Mart.

 
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08.01.2006 at 09:00 Reply
The Big Box-OffCome on Willamette Week! What is the deal with having half assed articles?Look, I do not favor Wal Mart at all. I will never shop there and I look forward to the day they crumble. And yes, give them 10 years, and they will crumble. Regardless, why didn't you delve deeper in your article? Offer more critical thought and analysis? Ikea and Wal Mart pay virtually the same. Who knows what kind of benefits IKEA employees get? The fact that they get them 6 months earlier than Wal Mart is great, but it really doesn't make them a saint.What we really have here is this:I like to call the typical Subaru driving, Eric Sten Voting, Nature hiking Bird watching Portlander a member of the Granola Crowd. These people look so blindly to the left, they are just as bad as the ditto heads on the right. Anyway, this Granola Crowd is just another group of consumers. And I mean big consumers. (read: large wooden houses, multiple cars, etc.)This granola crowd will praise IKEA, because they sell stuff that appeals to them. Sure, they aren't interested in buying 12 quarts of Castrol GT Motor oil. They take their VW Golf TDI (Biodiesel only please) into the dealer to get serviced. The granola crowd is interested in a Komphloftapogh, or some other weird Swedish name that means "sleek contemporary sofa, for a very cheap price." Since IKEA sells this image, they are good. Wal Mart sells the White Trash image, so they are bad. And I thought the Granola Crowd was tolerant.The Bottom line is this:Both stores sell stuff that is made in China, and it is stuff we can do without.Both Stores pay nearly the same wage.Both stores drive out and hurt small local businesses.Wow, IKEA scores one advantage point on paying benefits 6 months earlier and is "environmentally friendly." Well, as environmentally friendly as a huge double decker box store can be, when it has to be air conditioned, and the area of the roof and gigantic parking lot provide acres of impermeable surfaces to create more runoff. Not to mention the resources involved to import their Chinese crap over here. Why didn't you investigate what they mean by environmentally friendly? Will putting that store there help the ducks that will be displaced from their wetlands? Will they hire the ducks to sit in a man made duck pond? —You know who I am!

 

08.02.2006 at 09:00 Reply
The Big Box-OffOk you two retards, do you know where the new IKEA will be? There aren't any wetland there, it's just a big empty field next to the airport as it has been since the flood dams went in. Before that is was the flood plain of the Columbia. They didn't tear down any historic buildings, but in New York that happens every freaking day. Land is what is valued! Have you ever even been to NEw York? And the ducks will be fine, Governemnt Island is right there in the middle of the Columbia and practially undeveloped as well as only accessable by boat. Further, sterotyping Portlanders as Gonala hippes is just stupid. Seeing as I actually live in Portland, I can say that very few of my neighbors are crunchy Gronala hippes driven VWs. We have a few older retired couples, an accountant who workd for a timber company, and a couple who had GWB signs on their lawn the last election.As you may have noticed though, all of the 100 year old houses in Portland are built out of Wood. Whether or not I live chose to live in a wood house is a stupid argument as the trees were cut down +100 years ago and nothing I do can change that. Resroting these old homes and making them nice places to live actually conserves resources by not requireing new houses to be built (which in case you missed it, all the new houses are still built out of wood). Even if I didn't want to live in a wood house, were the hell would I go to live? What would my options be? I bet you guys love those Condos they are putting up all over town, right? Anyone who makes the claims of "Wou know who I am?"...well I know you are a complete idiot and you don't know WTF you are talking about.Now here is one more clue. EVERYTHING cheap is made in China now. Wake up you idiots. Having been to the China industrial districts North of HK I can say that China has it's own issues. There are a ton of people there that need to eat. Yes there are bad and good factories just like everywhere else on the planet, but the fact of the matter is, unless you understand the Chinese situation, why don't you STFU about what you know nothing about. Good made in China aren't balcka nbd white good and bad. But I guess it is a little more complicated than your simple mind can grasp.Now here is a lesson in capitalism. IKEA is filling a demand that people have for goods. You can deride people's taste all you want and call them names, but what should IKEA do, say no we don't want to sell to those upper middle class people. It economics that drives the world, not your out of wack world view. And IKEA's furniture is no less affordable that what they have at Fred Meyer or I imagine in Walmart. It actually offers quite a bit of value if you had actually been there.Yeah, it's still a big store, but so what? Fred Meyer had giant stores all over town and who bitches about that? No one.It never amazes me how people run their damn mouths about stuff they haven't spent more than ten seconds logically analizing. While IKEA is still a corporation in it to make money, it does make a big difference that they at least try to pretend to care about people and the environment. Walmart can't even be botherd to fake it, and if they can't build stores in Portland it's their own damn fault for not knowing what they are doing. Now you two go play in the street, mkay? —Hating on asshats

 

08.02.2006 at 09:00 Reply
The Big Box-OffI am a long time IKEA coworker, my wife and I will be moving up to Portland to open this store. Now that that is out of the way, I will be honest with you, if you work in retail, you want to work with me at IKEA. I WOULD NEVER work at a Walmart, I have worked at many other retailers and IKEA is more then a company (being the worlds largest family owned business), but an ideal. Once we open you will see the difference immediatly.—"IKEA Rob"

 

08.02.2006 at 09:00 Reply
The Big Box-Offwhy does portland celebrate a big box store that sells nordic furniture to middle and upper class white folks, while discouraging a big box store that sells to lower income folks and peoples of colors. Big Box is Big Box, the two really have the SAME effect. In Brooklyn Ikea demolished historical buildings dating back to the civil war to sell their cheap plastic and particle board stuff.Is this article supposed to make the Ikea shoppers feel better? That if they shop at Ikea they are still "progressive" because at least they are not shopping Wall Mart. Big Box is Big Box—I make furniture out of lego's

 

08.02.2006 at 09:00 Reply
The Big Box-OffThe one thing I do not get is, who tells you where to shop and buy your products? If you do not like a corporation or company, do not shop or buy their products. Go elsewhere. You, the consumers, decide for yourself.—Bryan Dorr does not feed Wal-Mart

 

 
 

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