The Causes and Consequences of Wal-Mart's Growth¶
Basker, E. (2007). The Causes and Consequences of Wal-Mart's Growth. Journal of Economic Perspectives, 21(3), 177-198.
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Mechanisms¶
- Reinvestment Cadence
- A grocery chain runs a scale flywheel: more stores and volume win better supplier terms, the savings fund lower shelf prices, lower prices pull more shoppers, and more shoppers justify more stores.
This sourceExplains that retail-chain scale increases input-market power and lowers procurement and operating costs.
- A grocery chain runs a scale flywheel: more stores and volume win better supplier terms, the savings fund lower shelf prices, lower prices pull more shoppers, and more shoppers justify more stores.
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