Quote:
Originally posted by ktsnake
Sure some businesses close, but how many new ones open as a result of the Wal-Mart's draw of foot traffic? Around here, when a Wal-Mart is opened, the area around is soon full of businesses being built. I'm sure it hurts some businesses, but it helps others. Are your figures based on a net loss/gain of businesses or just the fact that an average of 4-5 close?
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It's a net loss/gain not simply on an average of closing. May I ask what types of businesses open around there soon after a Walmart is built?
I studied Walmart over a semester in my Management Analysis class and I rarely found data to support business openings around a Walmart.
This is small business related considering hoosier said that Walmart "probably helps small businesses." If we are talking about the creation of new business around a new Walmart facility ti almost always means another large business chain and not a small business.
Chains such as Home Depot, Kohls Department Store, Menards, Wendys and other gas station chains will open around Walmart areas. Again, these are all larger chains. They do not reflect the closing of small business that hoosier seems to think are helped by Walmart.
It gets more and more complex but many of the businesses that flourish around a Walmart do so because they have no direct competition with the store. Walmart does not sell home building supplies as Home Depot or Menards do. They do not sell fast food as Wendys does, etc....
A few fun facts:
Walmart is on target to capture 50% market share on consumer staples by the end of the decade.
Ktsnake you are in Oklahoma right? 30 supermarkets have closed in Oklahoma City since Walmart first entered the city.
Walmart has a yearly turnover rate of almost 50% for hourly workers.
Walmart controls 37% of U.S. food sales and 25% of U.S. drug sales.
(BusinessWeek October, 2003, - "Is Walmart too Powerful?")
I guess the point is Walmart is bad for small business and bad for many medium sized businesses that have a direct investment in the many items that Walmart sells.
Anyway, this isn't a thread about Walmart.