New Research Reveals Strong Local Economic Benefit of Walmart Stores
The local business climate in communities throughout California benefits significantly from the presence of Walmart stores, according to a study released by an international consulting firm, Navigant Consulting, Inc.
"The presence of Walmart in any California community enhances as it relates to local revenues and business development," said Lon Hatamiya, a Director at Navigant Consulting and former Secretary of California's Technology, Trade and Commerce Agency.
The study found:
- Walmart Increases Local Taxable Sales - In every city where Walmart has opened a store with groceries in California, the city-wide taxable retail sales (including apparel stores, general merchandise stores, grocery stores, home furnishing and appliance stores, and other retail stores) have increased in the year following the opening of Walmart as compared to the taxable retail sales of the year prior to the opening. Moreover, the city-wide taxable retail sales have continued to increase in each subsequent year in all communities that have had a Walmart for multiple years.
- Walmart Stimulates New Business Growth - In 18 of the 21 communities, the number of retail business permits increased in the year following the opening of the Walmart when compared with the year prior to the opening. The average increase in the number of retail business permits was 32.7 per community. Slight declines occurred in Gilroy, Palm Desert and Palm Springs. However, these were offset in those communities by sizeable gains in retail business permits two years following the opening of the Walmart.
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