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There’s no doubt about it. When a Wal-Mart opens or expands, the entire business community in the town is affected. There have been a number of studies conducted on the various effects Wal-Mart has on local economies. What are the findings?...

IF YOU COMPETE WITH WAL-MART, YOU WILL LOSE:

“Local merchants that sell the same merchandise as the big stores will probably face a reduction in sales because of the difficulty in competing with major chains.”[1]

“Studies in Iowa have shown that small towns lose up to 47 percent of their retail trade after 2 years of Wal-Mart [opening]".[2]

“’Partnering’ developed between the mega-retail discount chains and the manufacturers allowing these chains to buy ‘direct’. In many cases they eliminated the regional wholesaler who had traditionally served the small downtown retailer as well.” [3]

“The loss of locally owned stores and the pace of retail consolidation is staggering. 11,000 independent pharmacies have closed since 1990. Independent bookstores have fallen from 58 percent of book sales in 1972 to just 17 percent today. Local hardware dealers are on the decline, while two companies have captured 30 percent of the market. A single firm, Wal-Mart, now accounts for 7 percent of all consumer spending.”[4]

“Traffic density in older malls began to die as shoppers go to the newer and larger mega-retail discount stores, whether it be Target, Kmart or Wal-Mart. Within a year every second and third retail store is closed.” [3]

Q: Who competes with Wal-Mart?
A: Anyone who sells what Wal-Mart sells:

Books. Flowers. Candy. Toys. Clothing. Accessories. Jewelry. Home goods. Sporting goods. Groceries. Pharmaceuticals. Hygiene products. Glasses. Auto supplies. Stationary. Computers. Electronics. Cell phones. DVDs & Videos. CDs. Video games. Small appliances. And more!

If you sell these items, Wal-Mart will sell them for less than you can afford to.
What will that do to your business?

WAL-MART HAS OTHER INSIDIOUS EFFECTS ON THE LOCAL ECONOMY:

“The emergence of supercenters, which pay wages typical of the low-paying discount
retail sector, threatens to convert many high wage jobs into low wage jobs.”[5]

If people make less, they can spend less at your store.
They’ll spend it at Wal-Mart, with it’s everyday low prices.

[1] The Economic Impact of Wal-Mart Supercenters on Existing Businesses in Mississippi, by Kenneth Stone. Published by Mississippi State University, 2002

2 The Impact of Big Box Retail Chains on Small Businesses, Center for Applied Economic Research, Montana State University, Billings, 2001

3 Measuring the Economic and Sociological Impact of the Mega-Retail Discount Chains on Small Enterprise in Urban, Suburban and Rural Communities, Edward B. Shils

4 The Impact of Chain Stores on Community, a speech to the American Planning Association, April 2000, by Stacy Miller, Institute for Local Self Reliance

5 The Impact of Big Box Grocers on Southern California: Jobs, Wages, and Municipal Finances, prepared for the Orange County (CA) Business Council, by Dr. Marlon Boarnet, Depts. Of Urban Planning & Economics, UC Irvine, 1999.