This page contains just the summary of a BIG BOX ECONOMIC IMPACT STUDY

for the whole story, go to:
http://www.newrules.org/retail/econimpact.html

e-Mail this page to a Friend!

BIG BOX ECONOMIC IMPACT STUDIES

Download a PDF version of this page

Below
are summaries and links to key studies that examine the impact of
Wal-Mart and other large retail chains and, in some cases, the benefits
of locally owned businesses. For ease of use, we've organized these
studies into the following categories, although they do not all fit
neatly into one category. (Also see the Research section of the News Archive for more detailed stories on some of these studies).

• Economic Impact of Local Businesses vs. Chains
  
  Studies have found that locally owned stores generate much greater
  benefits for the local economy than national chains.
• Retail Employment
  
  These studies examine whether the arrival of a superstore increases or decreases the number of retail jobs in the region. 
  
  
  
• Wages & Benefits
  
  Studies have found that big-box retailers, particularly Wal-Mart, are
  depressing wages and benefits for retail employees.
• Existing Businesses
  
  These studies look at how the arrival of a big-box retailer displaces
  sales at existing businesses, which must then downsize or close. This
  results in job losses and declining tax revenue, which some of these
  studies quantify.
• Poverty Rates
  
  Counties that have gained Wal-Mart stores have fared worse in terms of
  family poverty rates, according to this study.
• Social and Civic Well-Being
  
  This study found that Wal-Mart reduces a community's level of social
  capital, as measured by voter turnout and the number of active
  community organizations.
• City Costs
  
  These studies compare the municipal tax benefits of big-box development
  with the cost of providing these stores with city services, such as
  road maintenance, police and fire—finding that cities do not always
  come out ahead.
• State Costs
  
  Because many of their employees do not earn enough to make ends meet,
  states are reporting high costs associated with providing healthcare
  (Medicaid) and other public assistance to big-box employees.
• Subsidies
  
  This study documents more than $1 billion in local and state development subsidies that have flowed to Wal-Mart.
  
  
  
• Consumers & Prices
  
  Are chains better for consumers?
  
  
  
• Traffic
  
  How do vehicle miles traveled and trips increase as a result of big box developments?
  
  
  

1. ECONOMIC IMPACT OF LOCAL BUSINESSES VS. CHAINS

The
following studies have found that locally owned stores generate much
greater benefits for the local economy than national chains.