PC 12/08/1993 - Laserfiche WebLink

Mr. Karn advised that the Walmart stores have a "just in time" merchandise delivery system. From the central distribution plant (near Fresno), one truck will be fully loaded with all merchandise needed for the Pleasanton store. Only one truck will make a delivery to the store, thereby eliminating truck traffic making deliveries from several different manufacturers. Chairman McGuirk inquired if there are other Walmart stores planned for this vicinity. Mr. Karn advised there are no plans for other stores. The Livermore store recently opened and the San Ramon site is no longer being pursued. Chairman McGuirk wondered what benefit there would be to having two Walmart stores so close together. Mr. Karn advised that the Walmart Corporation, being the most successful retailer in America, carefully chooses their development sites according to their analysis of potential sales and do not build their stores to be in competition with one another. Each store operates and functions on its own. In response to Commissioner Michelotti, Mr. Karn stated that the closest example of three Walmart stores within 50 miles of each other would be Vallejo, Fairfield and Vacaville (Solano County). In response to Commissioner Wright's question regarding the number of Walmart store failures, Mr. Kam believes that of the 1900 stores open, only two or three have failed in the nation. Chairman McGuirk asked if Walmart does any local buying, or if all buying occurs through the Central Distribution Center. Mr. Kam stated that there is some local buying, though most merchandise comes from the Distribution Center in order to take advantage of bulk buying. The Distribution Center for this area is near Fresno. The Distribution Center fully loads a truck for one specific store delivery, i.e., the truck would not make a delivery at both Livermore and Pleasanton stores. Commissioner Mahern asked if Walmart has any statistics on their impact on other retailers when they open a store. Mr. Karn stated that generally their impact is favorable, the reason being that they draw people in to shop and retailers offering other types of merchandise thrive on the increased traffic. However, retailers in head-to-head competition are forced to compete with Walmart or they will lose some of their sales. In response to Commissioner Hovingh, Mr. Kam stated that Walmart has not asked for an inducement to develop in Pleasanton and does not intend to. The computer generated video of the Walmart development site was shown. Chuck Bell, BSW Architects, One West Third Street, Suite 100, Tulsa, Oklahoma, is a design consultant for Walmart stores. He believes the Pleasanton project is one of the best projects in the whole country. Usually only one or two sides of a store has design focus, Planning Commission Minutes Page 5 December 8, 1993