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Affects of Wal-Mart

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Submitted By jford123
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Just about everyone has shopped at a mega-retail store like Target, K-Mart, or Wal-Mart. No one mega-retailer has grown as fast or as large as Wal-Mart. It is safe to say that every major city has at least one Wal-Mart store, which is great when a city has a large enough population for several stores thrive. What about the small towns with the small town businesses? How does a mega-retailer like Wal-Mart affect those small town businesses? I believe that a mega-retailer, such as Wal-Mart, is not good for the small town business.
Mega-retailers like Wal-Mart are very business savvy. When they come to a small community that does not have an abundance of jobs for lower educated people, they provide more job opportunities. Upon opening a store in a small town community, they provide jobs from day one: jobs in construction when they put up their new building, to cashiers and shelf stockers when the store opens.
With more jobs comes more money for the local economy. This sounds great at first. But is it? With all this new money coming in, where does it go? Does it help the small local shops? Or does the money go right back to the mega-retailer?
According to a few employees who wish to remain anonymous, Wal-Mart does not have a policy that states their employees must shop at their store; although, it is strongly encouraged. With this encouragement, that takes money from the small local shops and puts it right back in the pocket of the mega-retailer. This is a good thing for the mega-retailer, but what does it do to the local shops?
According to Kenneth E. Stone, Professor of Economics at Iowa State University, studies have shown that small towns lose up to 47 percent of their local retail trade within 10 years of a Wal-Mart store opening nearby. That is nearly half of the business gone in less than 10 years, within 15 miles of a town with a Wal-Mart. General…...

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