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News From the Trenches!

Rockland, ME (December 18, 2008) - Residents voted to repeal a zoning change that would have made way for a Walgreens in this city of 7,500 people.

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Bloomington, MN (October 30, 2008) - The grassroots group, the Accidental Activists, stopped Target's plans of placing a 180,000-square-foot Super Target in the community.
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Key Studies
What have studies found about the impact of Wal-Mart and other big-box stores? Here we provide concise summaries and links to the best available research on the impact of these retailers on jobs, wages, local businesses, taxes, and more. (Download a PDF version of this page for printing and distribution.)

Retail Employment
These studies examine whether the arrival of a superstore increases or decreases the number of retail jobs in the region.
 
Wages & Benefits
These studies examine the effect of big-box chains, particularly Wal-Mart, on 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, resulting in job losses and declining tax revenue.
 
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.
 
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
Wal-Mart reduces a community's level of social capital, which has implications for civic participation and economic growth, this study found.
 
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
The expansion of big-box retailers has been financed in part by massive development subsidies handed out by cities across the country. This study documents over $1 billion in subsidies received by Wal-Mart.
 
Consumers & Prices
Do chains deliver the consumer benefits they claim to?
 
Traffic
Established trip generation rates for supercenters significantly underestimate the actual traffic impact, according to this study.
 

 

© 2009 Institute for Local Self-Reliance