There's
      really
      something
      special
      about
     
     
      working
      for
      an
      island
      owned
      business.
      It
     
     
      isn't
      something
      you
      can
      see,
      or
      notice
      in
     
     
      wages.
      It's
      on
      a
      much
      more
      personal
     
     
      level,
      where
      you
      can
      have
      a
      deep
      satisfac-
     
     
      tion
      for
      what
      you
      do.
      Sometimes
      it's
     
     
      apparent,
      and
      sometimes
      you
      have
      to
      take
     
     
      a
      few
      steps
      away
      from
      what
      you're
      doing
     
     
      to
      really
      see
      what's
      going
      on.
     
    
   
   
    
     
      As
      globalization
      runs
      its
      course,
      we're
     
     
      seeing
      big
      box
      stores
      such
      as
      Wal-Mart
     
     
      opening
      in
      even
      the
      smallest
      towns
      in
      the
     
     
      Canada
      and
      south
      of
      the
      border.
      Although
     
     
      there
      may
      not
      be
      an
      increase
      in
      demand
      or
     
     
      supply
      within
      the
      market,
      these
      compa-
     
     
      nies
      continue
      to
      expand
      and
      force
      smaller
     
     
      shops
      to
      close
      their
      doors.
     
    
   
   
    
     
      Home
      Depot,
      which
      is
      scheduled
      to
      open
     
     
      in
      October,
      is
      the
      latest
      addition
      to
      Prince
     
     
      Edward
      Island's
      big
      box
      economy.
      They
     
     
      recently
      had
      a
      job
      fair
      which
      attracted
     
     
      several
      hundred
      potential
      employees.
     
     
      With
      unemployment
      on
      the
      island
      level-
     
     
      ling
      off
      at
      11.2%,
      this
      must
      have
      looked
     
     
      like
      a
      miraculous
      feat
      to
      some
      politicians;
     
     
      but
      local
      businesses
      are
      learning
      to
      recog-
     
    
   
   
    
     
      nize
      the
      truth
      behind
      the
      trend.
     
    
   
   
    
     
      While
      Southport
      Home
      Hardware
      refused
     
     
      to
      comment,
      |
      managed
      to
      reach
      John
     
     
      Horrelt,
      manager
      of
      Schurman's
      Building
     
     
      Supplies.
      Horrelt
      explained
      that
      while
      his
     
     
      store
      is
      concerned
      about
      increased
      com-
     
     
      petition,
      it
      forces
      them
      to
      be
      better
      in
     
     
      many
      ways.
     
    
   
   
    
     
      "We've
      had
      a
      Home
      Depot
      strategy
      team
     
     
      in
      place
      for
      the
      last
      year.
      You
      have
      to
      be
     
     
      prepared.
      We're
      not
      the
      first
      small
      group
     
     
      they've
      come
      into,"
      explained
      Horrelt.
     
    
   
   
    
     
      It
      turns
      out
      Horrelt
      and
      his
      team
      have
     
     
      really
      done
      their
      research.
      They
      are
      well
     
     
      aware
      that
      their
      new
      competition
      is
      a
      pub-
     
     
      lic
      traded
      company
      based
      in
      Atlanta,
     
     
      Georgia
      and
      in
      the
      last
      year
      they
      recorded
     
     
      65
      billion
      in
      earnings
      with
      an
      astonishing
     
     
      12%
      net
      profit.
     
    
   
   
    
     
      "You
      have
      to
      be
      in
      the
      top
      three,"
      said
     
     
      Horrelt.
      "Number
      one
      and
      two
      do
      very
     
     
      well,
      and
      three
      can
      get
      by,
      but
      after
      that
     
     
      it's
      almost
      not
      worth
      being
      in
      the
      busi-
     
     
      ness.
      "
     
    
   
   
    
     
       
     
    
   
   
    
     
      With
      a
      home
      depot
      opening
      every
      48
     
     
      hours
      and
      figures
      like
      these,
      the
      fact
      is
     
     
      that
      most
      island
      owned
      companies
      can't
     
     
      compete
      with
      this
      sort
      of
      hostile
      takeover.
     
     
      We
      can't
      afford
      major
      television
      commer-
     
     
      cials
      or
      in
      some
      cases,
      even
      small
      budget
     
     
      for
      advertising.
      In
      today's
      free
      market,
      we
     
     
      have
      virtually
      no
      protection
      from
      large
     
     
      corporations.
     
    
   
   
    
     
      Though
      this
      scenario
      may
      be
      bad
      for
      busi-
     
     
      nesses,
      competitive
      markets
      can
      be
      bene-
     
     
      ficial
      to
      consumers.
      It
      can
      lead
      to
      short
     
     
      term
      jobs
      and
      potentially
      lower
      prices
      all
     
     
      around
      the
      board,
      but
      at
      what
      cost?
      The
     
     
      opportunity
      cost
      could
      be
      quite
      astronom-
     
     
      ical
      to
      the
      public.
      Each
      job
      created
      in
      a
     
     
      dormant
      market,
      a
      job
      is
      lost
      on
      the
      other
     
     
      end
      of
      the
      spectrum.
      If
      this,
      then
      not
      that.
     
     
      It's
      a
      fundamental
      principle
      in
      microeco-
     
     
      nomics,
      and
      one
      we
      may
      all
      learn
      very
     
     
      soon.
     
    
   
   
    
     
      Visit
      the
      cadre
      online
      for
      story
      updates.
     
    
   
   
    
     
        
     
    
   
   
    
     
      UPEI
      Cadre
      September
      28,
      2004
      page
      19