2IMPACT OF THE WAL-MART PHENOMENON ON RURAL COMMUNITIES

There is strong evidence that rural communities in the United States have been more adversely impacted by the discount mass merchandisers (sometimes referred to as the Wal-Mart phenomenon) than by any other factors in recent times. Studies in Iowa have shown that some small towns lose up to 47 percent of their retail trade after 10 years of Wal-Mart stores nearby (Stone 1997). Overview The discount mass merchandisers are not the only threats that small town retailers have faced. In the more distant past, mail order catalogs distributed by Montgomery Ward and Sears Roebuck in the late 1800s caused quite a stir at the time (Mahoney). The mail order catalogs offered large selections at competitive prices. Coincidentally, a well-established railroad system provided nation-wide delivery of mail order goods within a few to several weeks. At its peak, Sears Roebuck offered over 100,000 items through its catalog and captured some sales from local merchants. The next major threat to rural retailers was the automobile. In the 1920s and 1930s automobiles and roads developed to the point where rural residents gaine