Effects of Wal-Mart Supercenters
In an otherwise uninspired article, Artz and Stone (2006) cite some interesting studies on the effects on a community of opening a Wal-Mart SuperCenter:
Supercenters are Wal-Mart’s fastest growing store format. With more than fifty departments including a full-line grocery section and average size of 187,000 square feet, these stores compete with a wide range of existing retailers in the markets they enter. . .
This article examines the impact of Wal-Mart Supercenters on grocery stores sales in local markets in Mississippi. The findings suggest that Wal-Mart Supercenters located in nonmetropolitan counties capture, on average, 17% of the existing grocery market within the first two years of operation. In metropolitan counties, Supercenters capture about 4% of existing grocery stores’ sales one year after entry. . .
Several recent studies analyzing the impacts on employment and wages in the retail sector after Wal-Mart’s entry find that retail employment and earnings decline as a result of Wal-Mart. . . Studies focusing on consumer impacts have found that a Supercenter’s entry reduces grocery prices. Not only do Supercenters offer lower prices, but their entry may have the indirect effect of lowering prices at competing stores. Estimates of this indirect effect range from 3% overall to as high as 13% for specific items