Mom-and-Pops or Big Box Stores

Abstract

This article explores WalMart’s impact on the retail sector in the counties in which it is located, as well as in surrounding counties, by examining the number and size of retail outlets, by retail category. Using statewide data as well as a case study incorporating econometric modes, we find that the main impact of the entrance of a WalMart primarily falls on competitive big box stores. Furthermore, we find that the long-run adjustment to the entrance of a WalMart takes between 18 and 36 months.

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