Retail Sector Concentration, Local Economic Structure, and Community Well-Being

Abstract

The rise and expansion of large retail firms mark a significant shift in economic organization across communities in the United States. In this article, we describe this shift and discuss implications for local economic structure and community well-being. We present theoretical perspectives on the concentration of productive resources and review findings from empirical studies linking retail-sector concentration to wages, jobs, and small firms as well as a host of community well-being outcomes, such as poverty, civic participation, health, and crime. Although most scholarly and public attention to this issue has focused on understanding impacts of Walmart in particular, our review seeks to highlight more general processes of rationalization, concentration, and a changing industrial structure. We conclude with a critique and directions for future research.