Implications of Supersizing a Box Store: Localized Effects in the Inner City

Abstract

ABSTRACTThe impact of big box stores on existing retail systems has been subject to considerable contention. It is debatable whether midsized box stores have the same impact on local communities as that of supersized box stores. Additionally, when a box store increases significantly in size and extends the range and depth of goods and services that it offers, it seems reasonable to consider that it can noticeably amplify its impact in a community or neighborhood. This study is unique in that it examines the localized impact of a Walmart that underwent conversion from a discount store to a supercenter in Toronto, Canada, in 2009. Before 2010, property values of the store, known as Dufferin Walmart, were considerable, but they increased dramatically afterward due to its supercenter conversion. The store has had a positive impact in providing new grocery space to an area of the city that previously resembled a food desert. There have been a number of adverse outcomes, however, with storefront closures and vacancies increasing considerably in nearby surrounding areas in the years immediately following Dufferin Walmart's conversion to a supercenter format.