The effects of Wal-Mart stores on the economic environment of counties in the Northeast PDF
Preview The effects of Wal-Mart stores on the economic environment of counties in the Northeast
UMASS/AMHERST 312066 0313 5209 0 University of Massachusetts Amherst B R A R Y I THE EFFECTS OF WAL-MART STORES ON THE ECONOM ENVIRONMENT OF COUNTIES IN THE NORTHEAST Department of Marketing/BIS & College of Business Industry University of Massachusetts Dartmouth PREPARED BY: w Nora Ganim Barnes, Ph.D. Professor Department of Marketing/BIS jjpfct 0. f"c*J'W^<^"^^rh!l^ * University of Massachusetts Dartmouth MA N. Dartmouth, 02747 uuf^--*^'^ (508) 999-8446 Allison Cormell Advanced Marketing Research University of Massachusetts Dartmouth MA N. Dartmouth, 02747 (508) 676-0296 Lisa Hermenegildo Advanced Marketing Research University of Massachusetts Dartmouth MA N. Dartmouth, 02747 (508) 990-4190 Luanda Mattson Advanced Marketing Research University of Massachusetts Dartmouth MA N. Dartmouth, 02747 (508)990-4059 I I I I We, at Umnss Dartmouth, otier the results of this study in an effort to enrich the ongoing discussion about Wal-Mart's expansion into the Northeast. This stud)' focuses on community demographics, retail sales and store closings and utilizes actual sales figures obtained from the Federal government. While we have found interesting and in some cases dramatic results, we know that many other variables will and should enter into the Wal-Mart debate. We recognize the concerns about environmental impact and issues of quahty of life in small towns. This study however, was designed to investigate the following questions about Wal-Mart's effect in the marketplace: 1. Does the introduction of a Wal-Mart store into a county have a positive or negative effect on the demographics of the community? 2. What is the impact of the store entry on the retail sales of other businesses in the area? 3. What is the impact of the store entry on the number of retail establishments operating in the area? ! 169 Table of Conlcnls Executive Summary 1 Introduction 3 Definitions 4 Methodology "7 Sales by Industry 10 Retail Sales for General Merchandise Stores 10 Retail Sales for Food Stores 10 Retail Sales for Automotive Dealers & Service Stations 10 & Retail Sales for Apparel Accessory Stores 11 Retail Sales for Furniture, Home Furnishings & Appliance Stores 11 & Retail Sales for Eating Drinking Establishments : 1 Retail Sales for Drug Stores 12 Number ofRetail EstablishmentsbyIndustry ..^ "16 BuildingMaterial Stores 16 General Merchandise Stores 1 Food Stores 17 Automotive Dealers &ServiceStations 17 Home & Furniture, Furnishings ApplianceStores 18 & Apparel AccessoryStores 18 ; , & Eating DrinkingEstablishments : 1 Drug Stores 19 Population, Unemployment, and Per Capita Income 22 Income and Population Growth 23 Overall Impact 31 Major Findings.. 34 , Comparative Findings 3^'^ Appendix The Effect of Wal-Mart Stores on the Lconoinic Enviromnent oi Counties in the Norilleast Executive Summary A study of fourteen Northeastern counties, that hosted a new Wal-Mart store between 1990 and 1992, was conducted by the University.ofMassachusetts Dartmouth (UMD) in order to determine the economic impact of the retailing giant on the region. Data were collected on retail sales, number of retail establishments, population, employment, and per capita income. All data were anaJ.yzed for changes over the six year study p>eriod. Special attention was focused on the year prior to and the year following the Wal-Mart storeopening. The following are the major conclusions of this analysis: • The number ofretail establishments showed only slight declines after a . one year Wal-Mart presence. The overwhelming majority of counties studied maintained thesamenumber of outlets or reported new openings. Even in those counties with fewerestablishments, sales were often higher indicating remaining establishments are growing. • Population and per capita income in constant dollars increased in eighty percent of thehost counties one year after Wal-Martopened. • The apparel industr}' reports growth of 16% the first year afterWal-Mart and 12% the second year. • Drug stores report growth of 10% the first year after Wal-Mart and 15% the second year. Digitized by the Internet Archive 2015 in https://archive.org/details/effectsofwalmartOObarn
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