Basha decries Wal-Mart 'blitzkrieg'
Eddie Basha
Christine L. Romero
The Arizona Republic
Feb. 7, 2004 12:00 AM
When it comes to Wal-Mart, Arizona grocery icon Eddie Basha doesn't mince words.
"I call it the economic holocaust," Basha, chief executive of Bashas', the state's largest homegrown supermarket chain, said in an interview with The Arizona Republic. "It's no different than what the Nazis did in World War II. It's a blitzkrieg. They are doing economically what the Nazis did militaristically."
The remarks from one of Arizona's best-known businessmen reflect the growing bitterness and fear among competitors, labor unions and others at the rapid expansion of Wal-Mart stores into their cherished domains. His comments also reflect what Wal-Mart has said is a tendency of critics to paint one of the country's most successful companies in the blackest light, calling it a cultural predator.
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Basha compares Wal-Mart to Holocaust
Wal-Mart officials could not be reached for comment. The Bentonville, Ark.-based company, which has 55 locations in Arizona, has strongly denied claims that its low-cost, low-prices strategy has harmed the economy or been a detriment to employees. It touts its community benefits, noting it donated $140 million last year to U.S. charities, and it was recently recognized by Hispanic Magazine for providing opportunities to Hispanics.
Basha's words were the kind that Jewish community groups often object to, though Basha said he didn't literally mean Wal-Mart is made up of Nazis. He meant that its corporate tactics are wiping out small businesses and hurting workers.
Intent not questioned
"Knowing Eddie Basha, there are few great champions for justice in Arizona," said Bill Straus, Arizona regional director of the Anti-Defamation League. "With that said, I think the last thing in the world he intended to do is to trivialize the Holocaust. . . . We have dozens of Holocaust survivors living in Arizona. I can tell you any reference to the Holocaust strikes them extremely profoundly."
Basha once received an award from the league for his commitment to ending bigotry and racism. He was a 1994 Democratic candidate for Arizona governor.
Industry under pressure
Basha's shots at Wal-Mart came as union officials in Arizona and across the nation blame Wal-Mart's low prices and wages for pushing competitors to seek to cut workers' wages.
In Southern California, workers at stores owned by Kroger Co., Safeway Inc. and Albertsons Inc. are in their fourth month of a strike over proposed cuts in pay and benefits. Workers and grocery officials here are negotiating to avoid a strike.
The Valley's grocery market recently got more competitive with the debut of Wal-Mart Neighborhood Markets, its stand-alone grocery stores.
Wal-Mart plans to increase its Arizona presence in coming years. It is Arizona's largest non-government employer, with 23,784 employees in late 2003. It has 21 discount stores, 22 Supercenters, two Neighborhood Markets and 10 Sam's Clubs.
Wal-Mart's grocery-market share in Arizona in 2002 stood at 12.2 percent, according to Trade Dimensions International. Fry's Food Stores had nearly 25 percent, Safeway had 21.1 percent, Bashas' nearly 16.5 percent and Albertsons 13 percent.
Bashas' has more than 140 locations under Bashas', AJ's Fine Foods, Food City and Bashas' Dine Markets.
Basha said one of his stores expects to lose 10 percent to 20 percent of sales when a Wal-Mart Neighborhood Market opens nearby.
"(But) in the broad scope of things, Wal-Mart will cost you more," Basha said. "I don't oppose Fry's or Safeway. They are legitimate competitors."
'Not idea of citizenship'
About Wal-Mart's reputation for paying low wages and benefits, he added, "In the scheme of things, they exploit and take advantage of their people. That's not my idea of citizenship."
The Bashas' chain, which, like Wal-Mart, is not unionized, also has been criticized for its treatment of workers. Some workers have tried to organize union representation at Food City stores, a branch of the Bashas' chain aimed at the Hispanic market.
Basha declined to comment on the possibility of unions in his stores but said, "Bashas' is a company that doesn't need third-party representation."
He stresses that his company is built around giving back to the community and offering workers pay that's comparable to that paid by other grocers. Some grocery-industry observers say larger national competitors will someday snap up regional chains.
Basha contends he will never sell and will keep fighting the grocery battle.
"As long as I'm alive, I'll never sell," he said. "To our family and our philosophy, richness is defined in a different way."
Dennis
