Introduction
The market economy is a complex, multi-level mechanism that requires assessment from various perspectives. One reason for the complexity is the presence of numerous players in the market, including both large and small businesses eager to compete. As an argument for this essay, it is essential to emphasize that Walmart harms the market rather than benefits it. Despite Walmart’s advantage in scale for supplying products to consumers, its impact on the economy is ultimately harmful in the long run.
Negative Impact
In her article “In Praise of Chain Stores,” Virginia Postrel cites Chandler as one of the fastest-growing cities in the United States. However, the author notes that such growth should be qualitative and be formed not by shopping centers and stores but by factors such as history and culture. As Postrel states, “stores don’t give places their character. Terrain and weather and culture do” (2). Hence, while Walmart can attract more consumers through its chain stores, this economic growth is not qualitative and ultimately harms people’s lives.
Due to its scale, a significant adverse effect that Walmart has on the economy is its impact on the functioning of other small businesses. It is essential to emphasize that, due to substantial financial resources, large chain stores can afford to introduce a range of marketing tools for their products and offer significant discounts to buyers (Hoover). In contrast, smaller businesses cannot compete with Walmart because they cannot apply such approaches (Hoover). Consequently, the market is losing variety of supply, another factor negatively affecting the city’s economy.
Positive Impact
On the other hand, the article discusses the significant economic benefits that chain stores can bring. In particular, the Walmart chain of stores is considered. According to Hoover, “the typical Walmart supercenter carries well over one hundred thousand different items from tens of thousands of suppliers” (1). The author emphasizes that marketing goods to meet people’s demands is complex (Hoover). Consequently, companies such as Walmart provide significant assistance and add value to the region’s economy.
In addition to meeting customers’ broad demand, companies such as Walmart offer a wide range of features that make purchases more affordable, comfortable, and profitable. Gary Hoover, in particular, emphasizes aspects of trading with big chain stores, such as the possibility of returning goods within a specified time, as well as various systems of shares and discounts for buyers (Hoover). As a result, such trade approaches not only attract more consumers, which positively impact financial benefits and local economies, but also increase the overall welfare of the region’s residents.
Counter Argument
The preceding two paragraphs have addressed the positive and negative aspects of chain stores such as Walmart. Despite their negative characteristics, chain stores, such as Walmart, help meet strong consumer demand, especially in large cities and megacities (Stacy). Therefore, as a counterargument to the essay, one should highlight the significant economic benefit Walmart provides to the economy in the short term through mass sales to consumers.
Conclusion
In conclusion, it is essential to emphasize that when evaluating the advantages and disadvantages of Walmart chain stores, examining these indicators in terms of time characteristics is crucial. Through the use of articles in the essay, it was found that such giant stores, while meeting demand, have a negative long-term impact on city development. Additionally, large chain stores negatively impact small local businesses, reducing market variety. Therefore, Walmart’s impact on local economies and cities can be considered unfavorable.
Works Cited
Hoover, Gary. “The Wonders of Chain Stores and Franchises.” American Business History Center. 2022.
Mitchell, Stacy. “The Impact of Chain Stores on Community.” ILSR. 2000.
Postrel, Virginia. “In Praise of Chain Stores.” The Atlantic. 2006.