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Revisiting WalMart’s Impact on Iowa Small-Town Retail

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  • Georgeanne M. Artz
  • Kenneth E. Stone

Abstract

Ken Stone conducted the first study of WalMart stores’ economic impact in Iowa in 1988. Since then, research on WalMart’s impacts has exploded. Recent studies employ sophisticated statistical techniques to more accurately measure the size and direction of effects. Many reach conclusions similar to Stone’s original work. This article updates the original Stone study with additional years of data. It draws on recent methodological advances to help account for the effects of WalMart’s strategic location decisions on estimated retail sales in Iowa. As is consistent with previous studies, we find that WalMart’s entry into smaller trade centers in Iowa had a big initial impact on host-town retail sales, with some categories experiencing significant increases while others saw declines in sales per capita. WalMart’s presence helped stabilize or even expand the local retail sector of most rural Iowa host communities. To conclude, we discuss policy implications for local economic development officials.

Suggested Citation

  • Georgeanne M. Artz & Kenneth E. Stone, 2012. "Revisiting WalMart’s Impact on Iowa Small-Town Retail," Economic Development Quarterly, , vol. 26(4), pages 298-310, November.
    • Handle: RePEc:sae:ecdequ:v:26:y:2012:i:4:p:298-310
    DOI: 10.1177/0891242412461828
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    References listed on IDEAS

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    Cited by:

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    2. Håkansson, Johan & Li, Yujiao & Mihaescu, Oana & Rudholm, Niklas, 2016. "Big-box retail entry in urban and rural areas: Are there productivity spillovers to incumbent retailers?," HUI Working Papers 118, HUI Research.
    3. Rudholm, Niklas & Li, Yuijao & Kenneth, Carling, 2018. "How Does Big-Box Entry Affect Labor Productivity in Durable Goods Retailing? A Synthetic Control Approach," HUI Working Papers 130, HUI Research.
    4. Klaesson, Johan & Nilsson, Helena, 2020. "Entry of malls and exit of stores - The role of distance and economic geography," HFI Working Papers 12, Institute of Retail Economics (Handelns Forskningsinstitut).

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