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Study Confirms that Walmart Supercenters Have Positive Economic Impact in California

Press Kit

Communities with Walmart Supercenters experience increase in small business growth and sales tax revenue when compared to communities without Walmart Supercenters

SACRAMENTO, Calif. (Jan. 28, 2014) - Walmart Supercenters in California benefit communities by supporting additional job creation, small business growth and more robust sales tax revenues, according to a new economic impact report. The study was conducted by economist Lon Hatamiya of the Hatamiya Group and announced today by Walmart.

“I first launched this study in 2008 and found similar results,” said Lon Hatamiya. “I added an element to the current version by looking at communities without Walmart Supercenters and comparing the results. It’s clear that communities with a Walmart Supercenter experience overall positive economic benefits to a local economy when compared to a community without a Walmart Supercenter.”

The research revealed that on average California communities with Walmart Supercenters experience positive gains in taxable retail sales and an increase in the average number of retail business permits. What’s more, similar-sized communities in both northern and southern California without Walmart Supercenters either experienced a decline in average taxable retails sales or fell short when compared to a similar-sized community with a Walmart Supercenter. And in some cases, both occurred.

Key findings from the study include:

  • On average, California communities with Walmart Supercenters fared far better on taxable retail sales than those communities without Walmart Supercenters.

  • Total taxable retail sales in California communities with Walmart Supercenters increased by an average of 20.3% after the opening of those stores. 
  • Total taxable retail sales in California communities without Walmart Supercenters decreased by an average of 11.7% over the same time period.
  • On average, California communities with Walmart Supercenters experienced even stronger gains in the number of retail business permits issued than those communities without Supercenters.
  • Total retail business permits in California communities with Walmart Supercenters increased by an average of 48.5% after the opening of those stores.
  • Total retail business permits in California communities without Walmart Supercenters also increased, but only by an average of 20.3% over the same time period.

“Walmart is focused on the facts when it comes to talking about our presence in a community and evidence shows that California communities win with Walmart, particularly in regions of the state that have fewer economic opportunities,” said Kim Sentovich, senior vice president of the Pacific Division for Walmart.

Lon Hatamiya with the Hatamiya Group conducted the study. Mr. Hatamiya previously served as California’s Technology, Trade and Commerce Agency Secretary in Governor Gray Davis’ Administration. In this role, he was the state’s primary promoter of economic development, job creation and business retention.  Additional background on Mr. Hatamiya can be found at http://www.hatamiyagroup.com.



FACTS ABOUT WALMART’S ECONOMIC OPPORTUNITY STUDY

Study Findings on Taxable Retail Sales:

  • On average, California communities with Walmart Supercenters fared far better on taxable retail sales than those communities without Walmart Supercenters.
  • Total taxable retail sales in California communities with Walmart Supercenters increased by an average of 20.3% after the opening of those stores.
  • Total taxable retail sales in California communities without Walmart Supercenters decreased by an average of 11.7% over the same time period.

Study Findings on Retail Business Permits:

  • On average, California communities with Walmart Supercenters experienced even stronger gains in the number of retail business permits issued than those communities without Supercenters.
  • Total retail business permits in California communities with Walmart Supercenters increased by an average of 48.5% after the opening of those stores.
  • Total retail business permits in California communities without Walmart Supercenters also increased, but only by an average of 20.3% over the same time period.

Economic Impact Methodology:

  • The data for this study was pulled from the California Board of Equalization (BOE), which provides detailed reports on each of California’s 58 counties and 272 of the largest cities.
  • The study examined six communities in California where Walmart has opened Supercenters, which include:

-  Population over 100,000: Modesto (north) and Lancaster (south)
-  Population between 50,000-100,000: Yuba City (north) and Rosemead (south)

-  Population less than 50,000: Dixon (north) and La Quinta (south)

  • The study examined six California communities where Walmart Supercenters do not exist, which include:

-  Population over 100,000: Vallejo (north) and El Monte (south)
-  Population between 50,000-100,000: Alameda (north) and Whittier (south)

-  Population less than 50,000: Hollister (north) and Lawndale (south)

  • The study compared cities of like sizes and geographic locations with Walmart Supercenters versus cities without Walmart Supercenters as follows:

-  Population over 100,000: Modesto vs. Vallejo (north) and Lancaster vs. El Monte (south)
-  Population between 50,000-100,000: Yuba City vs. Alameda (north) and Rosemead vs. Whittier (south)

-  Population less than 50,000: Dixon vs. Hollister (north) and La Quinta vs. Lawndale (south)

 

About Walmart
Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save money and live better – anytime and anywhere – in retail stores, online, and through their mobile devices. Each week, more than 245 million customers and members visit our more than 11,000 stores under 69 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2013 sales of approximately $466 billion, Walmart employs more than 2.2 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting http://corporate.walmart.com, on Facebook at http://facebook.com/walmart and on Twitter at http://twitter.com/walmartnewsroom. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.