Study Calls Into Question Walmart's Economic Development Bona Fides

A study just published in Economic Development Quarterly documents the geographical destruction on local businesses wrought by a new Walmart store, and raises questions about its long-term impact on sales tax revenues, reports Nate Berg.

1 minute read

September 17, 2012, 7:00 AM PDT

By Jonathan Nettler @nettsj


The study, authored by a team led by University of Illinois Chicago economics professor Joe Persky, looked at the effect of the opening of a Walmart store on existing businesses and found a direct geographic correlation with rates of closure.

"No matter which direction you go from Walmart, there's a very high rate
of business closures in the immediate vicinity, and the further away
you get there's less and less," says Persky. According to Berg, "Persky and his colleagues found that for every mile closer to the
Walmart, 6 percent more stores closed. Close in around the store's
location, between 35 and 60 percent of stores closed." 

"The research also shows that during the study period, from 2006 to 2008,
overall sales tax revenues went down in the two ZIP codes closest to or
encompassing the Walmart," notes Berg. 

Granted the study only focused on the effect of one Walmart store, located in the Austin neighborhood of Chicago's West side. It also failed to "include any data on stores that opened during the 2006 to 2008 period, just those that closed."

"Walmart disputes these findings and argues that its stores are magnets for both growth and economic development," says Berg.

Friday, September 14, 2012 in The Atlantic Cities

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

November 11, 2026 - Zachary Whalen

A road in north eastern Nebraska with power lines on either side, and grassy fields.

Eastern Nebraska is running out of electricity

Data centers and electrification are straining eastern Nebraska’s grid, throttling economic development.

November 6, 2026 - Grist

People walking and cycling on a street in Boston.

Study reveals best places in the U.S. for cycling, walking

New research from Streetlight Data examines bicycle and pedestrian miles per capita in the 100 largest U.S. cities by population.

November 8, 2026 - Smart Cities Dive

Two workers in high-vis jackets look at a melted portion of the I-95

Why does it take an emergency for the U.S. to expedite infrastructure projects?

In June 2023, Philadelphia repaired a melted interstate in 12 days thanks to an emergency order.

November 14 - Vox

Mark, an older white man in a blue jacket, smiles in front of a plaque that commemorates his scholarship.

Federal government nominates new FTA administrator

Mark Aesch is currently the founder and CEO of a transportation management consulting firm.

November 13 - Mass Transit

A rendering of people walking through a park to the chicago bears stadium, which is large and dome shaped.

Developers reveal $10 billion stadium plan as ‘Hail Mary’ to keep Bears in Chicago

The plan would also boast a public park, high- and mid-rise buildings and a youth sports complex.

November 13 - Chicago Sun Times

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.