The Impact of Big Box Stores on the Economy

1. Abstract

The purpose of this essay is to analyze the impact of big box stores on the economy. The main argument is that while big box stores have contributed to the growth of the economy, their negative effect on small businesses and local communities cannot be ignored. It is important to seek a middle ground to reduce the negative effect while enjoying the benefits that these stores bring.

2. Introduction

The term “big box store” is used to describe a large chain store or supercenter. These stores are typically found in suburban areas and offer a wide variety of goods and services under one roof. Big box stores first appeared in the United States in the 1970s with the opening of Walmart Supercenters (now just called Walmart) and have since spread to other parts of the world (Dhru & Wiersema, 2005). In recent years, there has been a debate about the positive and negative effects of big box stores on the economy. This essay will discuss both sides of the argument and conclude that while big box stores have contributed to the growth of the economy, their negative effect on small businesses and local communities cannot be ignored. It is important to seek a middle ground to reduce the negative effect while enjoying the benefits that these stores bring.

3. Big box stores in the U.S. economy

There are both positive and negative effects of big box stores on the economy. The most obvious positive effect is that these stores create jobs. For example, Walmart alone employs 2.2 million people in the United States (Walmart, 2016). This creates employment opportunities not only for people who work in the store but also for those who work in supplier companies or provide other services to Walmart (Dhru & Wiersema, 2005). Big box stores also contribute to economic growth by providing low-cost goods and services to consumers. This is especially beneficial for low-income families who are able to save money by shopping at these stores (Dhru & Wiersema, 2005). In addition, big box stores generate tax revenue for local governments (Dhru & Wiersema, 2005).

However, there are also negative effects of big box stores on the economy. One of the most controversial effects is that these stores put small businesses out of business. This is because big box stores are able to sell goods and services at lower prices due to their economies of scale (Dhru & Wiersema, 2005). As a result, small businesses that cannot compete with these prices are forced to close down (Dhru & Wiersema, 2005). In addition, big box stores often receive government subsidies in the form of tax breaks or other financial incentives (Dhru & Wiersema, 2005). This gives them an unfair advantage over small businesses which do not receive such subsidies (Dhru & Wiersema, 2005). Finally, big box stores can have a negative impact on local communities by causing traffic congestion and pollution and by contributing to urban sprawl (Dhru & Wiersema, 2005).

4. Conclusion

In conclusion, while big box stores have contributed to the growth of the economy, their negative effect on small businesses and local communities cannot be ignored. It is important to seek a middle ground to reduce the

FAQ

Big box stores are large, multi-departmental retail stores that typically sell a wide variety of merchandise at discounted prices.

Big box stores have had a profound impact on the American economy, both in terms of job creation and destruction, as well as overall economic growth.

There are both benefits and drawbacks to having big box stores. Some of the benefits include increased competition which can lead to lower prices for consumers, as well as more convenience and selection. However, some of the drawbacks include the negative impact on small businesses and local economies, as well as potential negative environmental impacts.

Small businesses have been affected both positively and negatively by the presence of big box stores. On one hand, small businesses may benefit from increased foot traffic from customers who are visiting the big box store. On the other hand, small businesses may be harmed by the competition from big box stores selling similar products at lower prices.

Consumers have benefited from the advent of big box store shopping in terms of lower prices and increased convenience and selection; however, they have also been harmed in some ways such as decreased customer service and quality control issues associated with mass production/consumption models.

The future of the American economy with regards to big box store growth and development is uncertain; however, it is likely that we will continue to see an increase in big box store development due to consumer demand for low prices and convenience. A big box store is a large retailer that typically has a wide range of merchandise, including general merchandise, groceries, and sometimes even electronics or other items. These stores are usually found in suburban areas or on the outskirts of cities.

The advent of big box stores has had a mixed impact on the economy. On one hand, these stores have created new jobs and opportunities for growth in many communities. On the other hand, they have also put small businesses at a disadvantage and contributed to income inequality.