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The Economic Impacts of Walmart Supercenters

Author

Listed:
  • Richard Volpe

    (Agribusiness Department, College of Agriculture, Food, and Environmental Sciences, California Polytechnic State University, San Luis Obispo, California, USA)

  • Michael A. Boland

    (Department of Applied Economics, University of Minnesota, St. Paul, Minnesota, USA)

Abstract

Our purpose is to review the economic impacts of Walmart's disruption of the food retailing industry. This review synthesizes the extant knowledge and research findings related to the economic impacts of Walmart's entry into, and subsequent domination of, food retailing in the United States and more broadly globally. The findings suggest five broad generalizations: (a) Walmart's physical growth in the United States has slowed considerably, but the company is growing rapidly in terms of total assets, digital capabilities, international presence, and sales per square foot; (b) Walmart's entry and presence are associated with lower food prices for households; (c) Walmart has considerable negative impacts on large competitors, particularly supermarkets, but the evidence for Walmart's deleterious impacts on small businesses is limited; (d) there is no consensus on the impact of Walmart on local employment, but most studies on the topic point to a modest increase in retail employment; and (e) Walmart likely increases food access but does not improve dietary quality.

Suggested Citation

  • Richard Volpe & Michael A. Boland, 2022. "The Economic Impacts of Walmart Supercenters," Annual Review of Resource Economics, Annual Reviews, vol. 14(1), pages 43-62, October.
    • Handle: RePEc:anr:reseco:v:14:y:2022:p:43-62
    DOI: 10.1146/annurev-resource-111820-032827
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    Cited by:

    1. Bauer, Anahid & Fernández Guerrico, Sofía, 2023. "Effects of E-commerce on Local Labor Markets," IZA Discussion Papers 16345, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    food; food access; food prices; grocery; retailing; Walmart;
    All these keywords.

    JEL classification:

    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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