Kenneth Stone Study on WalMart
Kenneth Stone, in his study of the impact of WalMart on smaller cities, developed two primary conclusions that are worthy of note.
- Businesses that sell goods or services other than what WalMart sells tend to experience higher sales because of the spillover effect. The additional traffic attracted to town by WalMart will shop at these stores.
- Businesses that sell the same goods as WalMart tend to experience reductions in sales after WalMart opens.
As a response to concerns, Stone offered a number of what he calls "Prescriptive Measures for Merchants." They include the following pieces of advice:
- Be prepared to make changes.
- Take proactive action, anticipate a period of declining sales and prepare both a short- and long-term business plan.
- Identify market niches that aren't currently filled.
- Improve your level of customer service.
- Carefully evaluate your ability to compete on price.
