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The best compendium of big box
studies comes from the
New Rules Project,
a site dedicated to promoting development that,
in both the short and long terms, most truly
benefits a community. It is a great
resource not only for studies but for
provocative articles on and analyses of the costs of
mega-retailers and the benefits of local
merchants.
Compiled below by the New Rules Project 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, they have organized these studies into the
following categories:
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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.
-
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.
-
Existing Businesses & Jobs
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.
-
Wages & Benefits
Studies have found that big-box retailers,
particularly Wal-Mart, are depressing wages
and benefits for retail employees.
-
Poverty Rates
Counties that have gained Wal-Mart stores
have fared worse in terms of family poverty
rates, according to this study.
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Subsidies
This study documents more than $1 billion in
local and state development subsidies that
have flowed to Wal-Mart.
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Consumers
Are chains better for consumers?
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