Why SHOULD stores with higher costs and higher prices stay in business???They provide some replacement employment for jobs that walmart wipes out.
1. Wal-Martís Economic Impacts: Net Loss of Jobs, Fewer Small Businesses
Wal-Mart store openings kill three local jobs for every two they create by reducing retail employment by an average of 2.7 percent in every county they enter.
Wal-Martís entry into a new market does not increase overall retail activity or employment opportunities. Research from Chicago shows retail employment did not increase in Wal-Martís zip code, and fell significantly in those adjacent.
Wal-Martís entry into a new market has a strongly negative effect on existing retailers. Supermarkets and discount variety stores are the most adversely effected sectors, suffering sales declines of 10 to 40% after Wal-Mart moves in.
Stores near a new Wal-Mart are at increased risk of going out of business. After a single Wal-Mart opened in Chicago in September 2006, 82 of the 306 small businesses in the surrounding neighborhood had gone out of business by March 2008.
The value of Wal-Mart to the economy will likely be less than the value of the jobs and businesses it replaces. A study looking at the estimating the future impact of Wal-Mart on the grocery industry in California found that, ďthe full economic impact of those lost wages and benefits throughout southern California could approach $2.8 billion per year.Ē
Chain stores, like Wal-Mart send most of their revenues out of the community, while local businesses keep more consumer dollars in local economy: for every $100 spent in locally owned businesses, $68 stayed in the local economy while chain stores only left $43 to re-circulate locally.
New Study: Wal-Mart Means Fewer Jobs, Less Small Businesses, More Burden on Taxpayers | NYC Public Advocate