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Wal-Mart Effect

What is 'Wal-Mart Effect'

The economic impact felt by local businesses when a large firm such as Wal-Mart opens a location in the area. The Wal-Mart effect usually manifests itself by forcing smaller retail firms out of business and reducing wages for competitors' employees. Many local businesses oppose the introduction of Wal-Marts into their territories for this reason.

Explaining 'Wal-Mart Effect'

The Wal-Mart effect is not all bad; it can also curb inflation and help to keep employee productivity at an optimum level. The chain of stores can save consumers billions of dollars, but may also reduce wages and competition in an area.


Further Reading


what is the local WAL-MART EFFECT?
search.proquest.com [PDF]
… There are three stylized descriptions of Wal-Mart effects that may occur during retail market adjustment … First, if Wal-Mart enters a market and signifi- cantly lowers prices, both for goods … in which the research is in agreement), consumers will experience an income effect for retail …

Wal-Mart and social capitalWal-Mart and social capital
academic.oup.com [PDF]
… There are three stylized descriptions of Wal-Mart effects that may occur during retail market adjustment … First, if Wal-Mart enters a market and signifi- cantly lowers prices, both for goods … in which the research is in agreement), consumers will experience an income effect for retail …

Effects of the existence and identity of major customers on supplier profitability: Is Wal‐Mart different?Effects of the existence and identity of major customers on supplier profitability: Is Wal‐Mart different?
meridian.allenpress.com [PDF]
… There are three stylized descriptions of Wal-Mart effects that may occur during retail market adjustment … First, if Wal-Mart enters a market and signifi- cantly lowers prices, both for goods … in which the research is in agreement), consumers will experience an income effect for retail …

Job creation or destruction? Labor market effects of Wal-Mart expansionJob creation or destruction? Labor market effects of Wal-Mart expansion
www.mitpressjournals.org [PDF]
… There are three stylized descriptions of Wal-Mart effects that may occur during retail market adjustment … First, if Wal-Mart enters a market and signifi- cantly lowers prices, both for goods … in which the research is in agreement), consumers will experience an income effect for retail …

The new Wal-Mart effect: The role of private contacting in global governanceThe new Wal-Mart effect: The role of private contacting in global governance
heinonline.org [PDF]
… There are three stylized descriptions of Wal-Mart effects that may occur during retail market adjustment … First, if Wal-Mart enters a market and signifi- cantly lowers prices, both for goods … in which the research is in agreement), consumers will experience an income effect for retail …

Analyzing the impact of Wal-Mart supercenters on local food store salesAnalyzing the impact of Wal-Mart supercenters on local food store sales
academic.oup.com [PDF]
… There are three stylized descriptions of Wal-Mart effects that may occur during retail market adjustment … First, if Wal-Mart enters a market and signifi- cantly lowers prices, both for goods … in which the research is in agreement), consumers will experience an income effect for retail …

Institutional and economic determinants of transnational retailer expansion and performance: a comparative analysis of Wal-Mart and CarrefourInstitutional and economic determinants of transnational retailer expansion and performance: a comparative analysis of Wal-Mart and Carrefour
journals.sagepub.com [PDF]
… There are three stylized descriptions of Wal-Mart effects that may occur during retail market adjustment … First, if Wal-Mart enters a market and signifi- cantly lowers prices, both for goods … in which the research is in agreement), consumers will experience an income effect for retail …


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