Wal-Mart Location Study

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Executive Summary Memo To: Prof. T. Schuyler Hale From: Rodolfo Nolasco, Miguel A Quiroga Jr., Anthony Ramirez, and John Ramirez Subject: Hello, Wal-Mart? Case Study 2 Restatement of Problem: Wal-Mart is the largest retail corporation in the world. While many welcome its location in their communities, others do not. Suppose Wal-Mart has announced plans to seek the approval from the planning commission of a small town to build a new store. Develop a list of the main arguments, pro and con, that could be present at a public hearing on the matter by members of each of these groups: Owners of small businesses located nearby: o Increased Traffic = Increased Business (pro) o The Anchor Effect (pro)…show more content…
Small Businesses: Threats Inability to Compete Wal-Mart has had immense success since its inception in the early1960s, having been able to expand globally by offering a large selection of products at low prices. While Wal-Mart has enjoyed this success, many independently owned businesses have been unable to compete with the retail giant’s economies of scale. Local businesses, such as grocery stores, pharmacies, pet stores and flower shops, have suffered from the creation of a Wal-Mart in many cities across the United States. According to a report released by Wal-Mart Watch back in 2005, Wal-Mart’s expansion in Iowa is “solely responsible for the extensive closings of mom-and-pop stores, including 555 grocery stores, 298 hardware stores, 293 building suppliers, 161 variety shops, 158 women’s stores, and 116 pharmacies” (Sobel). Then there is also the Chicago area WalMart that casued “82 of 306 small businesses in the surrounding neighborhood” to shutter their doors “within 18 month’s” (Casey). Its because of events like this that New York City has fought hard to keep Walmart out of its city and shows how a Wal-Mart in the Houston Heights will be no different. Closures of small businesses will cause a ripple effect, causing suppliers and supporting businesses to close and consequently cause pains that may be felt for years to come in the

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