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Mom & Pop’s or Big Box Stores: Some evidence of Walmart’s impact on retail trade

Author

Listed:
  • Michael Hicks

    (Center for Business and Economic Research and Department of Economics, Ball State University)

  • Stanley Keil

    (Department of Economics, Ball State University)

  • Lee Spector

    (Department of Economics, Ball State University)

Abstract

This paper explores Walmart’s impact on the retail sector in the counties in which it locates, as well as those in surrounding counties, by examining such measures as retail outlets per 1000 population. Using state wide data as well as a case study, we find that the main impact of the entrance of a Walmart is primarily placed on competitive big box stores. Furthermore, we find that the long run adjustment to the entrance of a Wal-Mmart takes between 18 and 36 months.

Suggested Citation

  • Michael Hicks & Stanley Keil & Lee Spector, 2013. "Mom & Pop’s or Big Box Stores: Some evidence of Walmart’s impact on retail trade," Working Papers 201302, Ball State University, Department of Economics, revised Mar 2013.
    • Handle: RePEc:bsu:wpaper:201302
    as

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    File URL: http://econfac.bsu.edu/research/workingpapers/bsuecwp201302hicks.pdf
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    References listed on IDEAS

    as
    1. Stone, Kenneth E. & Deller, Steven C. & McConnon, James C. Jr., 1992. "The New Retail Environment in Maine," Staff General Research Papers Archive 11255, Iowa State University, Department of Economics.
    2. Emek Basker, 2005. "Job Creation or Destruction? Labor Market Effects of Wal-Mart Expansion," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 174-183, February.
    3. Michael J Hicks, 2008. "Estimating Wal-Mart's Impacts in Maryland: A Test of Identification Strategies and Endogeneity Tests," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 34(1), pages 56-73, Winter.
    4. Michael J. Hicks, 2007. "Job Turnover and Wages in the Retail Sector: The Influence of Wal-Mart," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 22(Spring 20), pages 137-160.
    5. Srikanth Paruchuri & Joel A. C. Baum & David Potere, 2009. "The Wal‐Mart Effect: Wave of Destruction or Creative Destruction?," Economic Geography, Clark University, vol. 85(2), pages 209-236, April.
    6. repec:rre:publsh:v:39:y:2009:i:1:p:73-83 is not listed on IDEAS
    7. Hicks, Michael J. & Wilburn, Kristy L., 2001. "The Regional Impact of Wal-Mart Entrance: A Panel Study of the Retail Trade Sector in West Virginia," The Review of Regional Studies, Southern Regional Science Association, vol. 31(3), pages 305-313, Winter.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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