If you've been paying attention to the stock market and Fed rate cuts this week, you may have noticed that a deadly ice storm has crossed the plains from Kansas to Oklahoma to Missouri. Over a million people have been left without power due to ice felling power lines, and schools across all three states have been closed almost this entire week. In Oklahoma alone, all 77 counties in that state have been declared in a "state of emergency." Not good.What to do when half of the town is without power and it's right at the freezing mark? Find relatives or friends to visit (and stay the night with), find a nearby hotel and check in (if it has power), or spend all day in retail stores to occupy the kids and keep them from climbing the walls in your powerless home. So, let's bring in the world's largest retailer -- Wal-Mart (NYSE: WMT). I visit one of the retailer's locations every week to perform research. Could not do this part of Monday and Tuesday of this week, though -- a loss of power caused a local Wal-Mart Supercenter to be completely shut down. See the picture to the right? Ever see a Wal-Mart parking lot that empty?
This brings me to a much larger point: it's hard to believe a large retailer does not have a power redundancy plan in place. In the Midwest, the weather can include destructive tornadoes and ice storms that can cause severe power outages at a moment's notice. Yet, retailers that are open 24/7 and, oddly, can be a lifeline for thousands of residents in need don't have emergency generators that can power themselves internally for 24 hours or so?
When I approached this particular Wal-Mart entrance yesterday, an employee guarding the entrance said that all the food in refrigerated cases would need to be thrown out (that's quite a loss) and that the store "should be opened by late Tuesday. She was correct, but it still leaves me wondering, Wal-Mart: is there a reason (cost, perhaps) that locations in high-risk-weather states don't have some kind of backup power source? Inquiring minds want to know.
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Reader Comments (Page 1 of 1)
12-12-2007 @ 11:37PM
Brockage said...
Great idea: Wal-Mart is already a central point for water and other emergency items. This would make Wal-Mart more prepared than the government in helping citizens during emergencies. Hope Mr Scott and other Walmarteers read the blog.
12-13-2007 @ 12:18AM
Fran Pipkin said...
I bet that Walmart will get their power on before homes and hospitals in the area. A disaster in the area means more sales and that's all they worry about.
12-13-2007 @ 12:40AM
mltodino said...
It must be some sinister plan of Wal Mart to close down when the power goes out. I can't imagine why they did think to put huge back up generators for every store (define high risk weather) to act as emergency shelters for the public. In this highly litigious society(think.... I tripped on some water from a now melting freezer, and I'm going to sue), letting the public live in your place of business, stocked with food and spirits(think post Katrina looting and riots) and all the best merchandise(think freebies the authorities are all busy taking care of some emergency), should sound like a fantastic Idea to all retailers...Again I can't imagine why nobody including wal mart wouldn't this is the best you have had yet. You have to be the biggest moron on the planet. With the exception of maybe myself, for having read this crap of a blog more than once. Quit pretending to be any kind of wal mart fan, and rename it for what it is, pro union propaganda site.
12-18-2007 @ 1:52AM
art said...
I used to work for Walmart and posed the same question when the power in the store when out for the 5th time since I worked there. The answer I received was: It cost about $150,000.00 for a generator of the correct size to keep the coolers and freezers in the store as well as the giant walk in freezers in the back of the store among other items like minimal lighting cash registers and security systems going. This cost does not include the 500.00/month to maintain the generator system. Since most power outages don't last more than a couple of hours, most food items are not lost. If the outage approaches 8-10 hours then company reefer trucks are brought in from a nearby DC to house the frozen food. Most of the refrigerated food is tossed ate that point. There are stores that actually do have backup generators and they are usually the top producing stores. There are also insulating blanket systems available as an option to the store Manager at a cost of 10,000 to keep the coolers and freezers colder for a longer power outage. In most cases it just doesnt make sense for the company to spend that kinda money on saving food and remaining open. It cost the company a lot more in theft per year than any other loss!
12-26-2007 @ 10:32AM
Col Samatoshi said...
The people at that walmart (and all of walmart in general) are morons!
Your power goes out because of an ice storm - there is ice outside - it's at or below freezing outside...
DUH! it's cold outside, there's ice outside! either grab some of that ice and toss it in the coolers, or put the food OUTSIDE!!!!!