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New Rules Project -Retail -The Hometown Advantage -Big Box and Wal-Mart Econom... Page 7 of 11 tike WaMAart opens a giant store, N inwdably apturea a substamial slice of Me rebN pie, leaving smaNer potions for existing businesaea, which ere Men forced to dowrrsize a dose. This study of Wal- Mart's impad on Iowa towns found Met Me average auparotore Cost other marchanb in Me host town about Sit mNNOn a year M sales (as of 1995), while stores M smeller towns nearby also suffered sutrehn6el revenue asses. These sates losses resulted In Me doaure of 7,328 lase businesses between 1983 and 1993, Mdudkrg 555 grocery atorea, 291 apparel stores, and 298 hardware stores. While towns that gained a Wal-Mart store Inidely expedenced a rise in overalt mbN sales, after tlra ftrsl two or Mree years, retaN sales began to dedkre. About one M four towns ending up wiM e lower bvel of rebil a Wvity Man Mey had prior to Wal-Mart's amval. Stone attributes Mia to Wal- MarYS strategy of saturetlng regions wiM mu0iple stores. 36 Alban, VamoM Shb Emlronmantal Board Act 260 Dsebbn, 1994 A catlbenef8 anatysk of a proposed Wal-Marl stare h St Albans, Vermont, found that Me store would cause dozens of exbtlng buslrressea to dose, leading to a net loss of 110,000 square feet of retail apace. The 214 jobs sealed by the new superMae would be o0set by the ba of 381 jabs et other Duakresses. The aaysb also found Mst ttre owreN lax losses expecbd hen Me Smelt business hNUres wouM be greater Man Me tax rewrwe genereted by Me new WaFMart. Moreover, Me dry would Inax a wrlety of crew coati to provkb roads. sewers, polbe, and ttre proledlon to servke the aprswgng new development The anayW wnduded Malta awry doNar in tax berreM seated by the superotoro, Mere would be 2.5 doltaro M tax losses and Wblic coats. 0. POVERTY RATES Counties Mat haw pairretl Wal-Mart stores haw fared worse In terms of hmNy poverty reran, accoNing to Mb aody. Wal-Mart and County-Wide Poverty - by Stephan Goeh and frame SwaminMan, Soda) Sdena Quarterly, June 2006 The prosena of a WaEMart atom hinders a community's ablNty tomow htoi8esout of poverty, acceding to this study. After controBrrg fa oMa hdors thst krftuerra poverty rates, the strWy found Mat U.S. wuntlea Msl had more Wet-Mart afaes M 11187I1atl a higher poverty reb M 1989 Man did countlas Mat sbrled the parted wlth fewer a no We4AAert stores. The shMy abo brartl that countes Mat added Wal-Marl stores between 1987 and 1998 experienced higher poverty cabs and greater usage of food stamps Man counties where Wal-Mart dW not build, all Wher Mings being equal. ANqugh Me study does not attempt to draw a mrrcbabn about why WaFMart expands Poverty. the sWdy's auMoro suggest savant possibb hdoro, indutling a ties of aotld apNal Mat ocam when baby owned buasreaaes dose arM the shill from canparelhrey beta PeYin9lobs at indeperxlenl rebNers to tower paying joW al Wal- Mcrt (an eedier, unpublished dreft an be downloaded for tree hero.) Marry university Iltxarbs also arty Soda) Sderroe Quarterty. 0. SOCW. AND CMC WELL-BEING Thb study foraM Mat Wet-Mart radices a eommunltys level of nodal apitd, a measured by ester wmout and the number of actlvs corrrnaaaty oryanlzetlorrs. http://www.newrules.org/retaiUeconimpact.html 9/5/2007