The Impact of an Urban WalMart Store on Area Businesses

Abstract

This study, the first on the impact of a WalMart in a large city, draws on three annual surveys of enterprises within a fourmile radius of a new Chicago WalMart. It shows that the probability of going out of business was significantly higher for establishments close to that store. This probability fell off at a rate of 6% per mile in all directions. Using this relationship, we estimate that WalMart's opening resulted in the loss of approximately 300 full-time equivalent jobs in nearby neighborhoods. This loss about equals WalMart's own employment in the area. Our analysis of separate data on sales tax receipts shows that after its opening there was no net increase in retail sales in WalMart's own and surrounding zip codes. Overall, these results support the contention that large-city WalMarts, like those in small towns, absorb retail sales from nearby stores without significantly expanding the market.

Is the Macy's in my mall going to close? Uncovering the factors associated with the closures of Macy's, Sears, and J.C. Penney stores

“…The first of these identified three phases of Walmart's diffusion. Walmart's rise, expansion, culture, and globalization have received much scholarly | 405 TOKOSH attention (Goetz & Swaminathan, 2006;Basker, 2007;Holmes, 2011Merriman et al, 2012 and is discussed in detail in Brunn's (2006) book Wal-Mart World. Phase two took place during the 1970s and 1980s and a combination of rapid store openings alongside acquisitions from competitors resulted in a significant enlargement of the firm's coverage.…”

“…Target followed a similar approach but targeted a more upscale niche than K-Mart. Walmart's rise, expansion, culture, and globalization have received much scholarly | 405 TOKOSH attention (Goetz & Swaminathan, 2006;Basker, 2007;Holmes, 2011Merriman et al, 2012 and is discussed in detail in Brunn's (2006) book Wal-Mart World.…”

Does Restricting the Entry of Formula Businesses Help Mom-and-Pop Stores? The Case of Small American Towns With Unique Community Character

“…In sharp contrast, some scholars argue that Walmart’s growth has had no statistically significant long-run impact on small businesses (e.g., Hicks, 2009; Sobel & Dean, 2008). Others report mixed results, demonstrating that the impact of a big box entry depends on the proximity, industry, and scale of the existing businesses (Basker, 2003; Haltiwanger et al, 2010; Hicks et al, 2012; Merriman et al, 2012; Sciara et al, 2018).…”

Decoding the Development Strategy of a Major Retailer: Wal-Mart's Expansion in the United States

“…Indeed, Wal-Mart's location decisions have been the subject of significant scholarly attention (Stone 1997;Brunn 2006;Goetz and Swaminathan 2006;Graff 2006;Basker 2007;Dean and Sobel 2008;Hicks 2008;Jia 2008;Holmes 2011;Merriman et al 2012). This body of research provides empirical evidence noting Wal-Mart's impacts on local markets.…”