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Yama Niwand

Socio-Economic Implications of A Wal-Mart on an Inner City Location: Dufferin Mall Neighbourhood, Toronto © 2009

Wal-Mart has been subject to many debates regarding its role in impacting the socioeconomic conditions of communities. Though many studies have focused on the Unites States, and primarily on Wal-Mart's negative impacts on small towns in the United States, this study aims to provide a more balanced approach to understanding an inner- city Wal-Mart in the Canadian market place. Motivated partially by assisting communities in better understanding the role Wal-Mart plays in their local economy, this paper utilizes empirical techniques with respect to trend series analysis, multivariate regression analysis, choropleth mapping and observational studies to gain insight into the existence of an inner-city Wal-Mart located in a high-density metropolitan (Toronto CMA) area. The aim of this study is to show plausible impacts –positive and negative-- of Wal-Mart on the surrounding businesses, property values, population income levels, employment rates, and retail development in and around Dufferin Mall. The findings indicate that the existence of an inner-city Wal-Mart positively affects nearby businesses by creating more traffic in the area, raising purchasing power of the local residents and by providing more employment by heightening the retail economy through retail agglomeration, multiplier effect and several pull factors that are associated with a big-box retailer. The importance this study lies in assisting local community authorities, namely city councillors, Business Improvement Associations and Economic Development Associations, to better understand the implications of a big-box retailer in their community which would allow for more informed decisions to take place when it comes to supporting community opposition to these conglomerates or issuing tax incentives.

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