White Paper by Analysis Group Consultants Details Walmart’s Impact on US Economy and Communities
August 16, 2024
As the largest retailer in the US, Walmart sells a wide variety of products and services to tens of millions of consumers across the country. An Analysis Group team led by Vice President Juliette Caminade and Managing Principal Jee-Yeon Lehmann and including Managers Juan Carvajal and Jenny Shen synthesized an extensive body of empirical research on how Walmart influences the US economy and the local communities in which it operates. Their findings are detailed in a white paper authored by Drs. Caminade and Lehmann that details how Walmart impacts consumers, workers, suppliers, and local labor markets. Among other findings, the economic studies they examined show that:
- Walmart’s “Every Day Low Price” pricing strategy and its product variety significantly benefit consumers generally, and low-income families in particular. Walmart’s presence in a community also incentivizes other local businesses to price competitively or improve their shopping experience.
- Retail workers at Walmart earn wages that are competitive with and sometimes higher than those of other retail workers in the US. They also have access to non-wage benefits (such as stock options) and educational and career advancement opportunities.
- Walmart’s ability to reach millions of customers enables both small and large suppliers to disseminate their products widely and reach new markets.
The researchers also find that available economic evidence suggests that Walmart’s entry in a local market has limited impact on small businesses, as Walmart competes more directly with other large retailers rather than with smaller local businesses.