Retail changes associated with Wal‐Mart’s entry into Maine

Abstract

The state of Maine was selected for study, since adequate sales tax records were available during the early 1990s, when Wal‐Mart entered the state. The sales tax reports were used to document the retail sales of Wal‐Mart towns, neighboring towns, and other towns in the state, in the years before and after a Wal‐Mart store’s arrival. The change in each community’s various categories of retail trade (building supply, food stores, general merchandise, other retail, auto and restaurants) was examined. The results indicate that the towns in each of the three categories were affected in the same manner: Wal‐Mart towns attract new shoppers and total retail sales increased at rates substantially higher than other towns in the state, while neighboring towns’ retail sales levels declined or increased at very low rates.