Wal-Mart – Costa Rica Monopoly Going Green

Walmart now has managed to take control of over 50% of the mega-shopping centers in Costa Rica and announced it is starting to go green.

Back in Feb, 2007 U.S. retail mega-giant Wal-Mart Stores Inc., the world’s largest retailer, said they would spend $49 million to open 14 new stores in Costa Rica and all within a year. The business hype was simple, it would create 1000s of new jobs, keep the government happy with additional tax revenue, keep prices down, and provide Costa Ricans with some of the US luxuries (like electronics) that otherwise they could not get at fair and reasonable prices.

So is Wal-Mart tending to the needs of the people?  Yes and No.

I will say one thing, Wal-Mart defiantly knows what they are doing with their monopoly (like ICE is) of a one-stop shopping center and cashing in on all the colons that otherwise would be going to José’s PC Service and Repair and Mendoza’s Buenos Appliances. The mom and pop stores are a bit cheaper in local products, especially the roadside stands selling fresh fruit and vegetables. And due to Costa Rica huge import taxes on luxury items, like cars, motorcycles, appliances, computers etc, you knew, unless the government reduced them, (which they did not because they would lose millions) luxury items weren’t the huge saving that many thought they would be.

Since that first foothold, in two years, their empire has grown to 152 stores, a far cry from the original 14 stores. What’s that you say dude?

Within the last two years, Wal-Mart has managed to take management control of  shopping stores,  like Pali, Maxi Bodega, Mas x Meno, Hyper Mas and Auto Mercado and NOW has control of over 50% of the mega-shopping.  Almost overnight the Mas x Menos stores now look like the typical US Wal-Mart inside and at some, they flaunt  gas stations, rent a car services, restaurants, etc and has pushed out (like in the US) the mom and pop businesses and culture that Costa Rica was known for. Bummer!

Wal-Mart territorial takeovers, has had its opposition. Many Blogs are crying “Greedy Corporate!” Anti-CAFTA (Anti-Central American Free Trade Agreement) in Costa Rica had massive boycotts of the above mentioned stores and labor bitched that Wal-Mart was using Sweatshops in places like Columbia where workers were getting $2.00 a day. And there were some claims/rumors that Wal-Mart imported local products, like bananas and pineapples (which they were not to do) since labor was cheaper outside of Costa Rica -  and/or paid local labor way below the minimum wage in places like Del Monte Costa Rica where Wal-Mart sells Del Monte products in its stores. Fact or Fiction?

However, I will say that Wal-Mart always seems to make the bad into good. Last month they announced they were going Green! Yes, they begin to substitute their Styrofoam containers that they used for fruit and vegetable for biodegradable/compostable containers. These eco-containers are made from natural fibers and being distributed in the Caribbean, Central and South America by the Costa Rican company, Musa Green Group.

Obviously, Styrofoam damages the environment being non-degradable, where these containers are degradable into a compostables within 90 days, well under favorable conditions. And tending to the environment to help gain more favorable PR …

Hummm, what’s next on Wal-Mart’s schedule for Costa Rica?

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