The Price Impact of Wal-Mart: An Update Through 2006

Wal-Mart's growth in the U.S. market has sparked increasing debate about the economic impact of its expansion.

In 2005, Wal-Mart commissioned Global Insight to undertake an independent research effort to analyze this issue. The goal of that research was to independently and credibly document Wal-Mart's national and local impacts in terms of jobs, wages, prices, consumer buying power, productivity, and gross domestic product.

That report found that the existence of Wal-Mart between 1985 and 2004 resulted in a 3.1% cumulative reduction in consumer prices by 2004. This translated into consumer savings amounting to $263 billion in 2004—$895 per person and $2,330 per household.

During 2007, Wal-Mart asked Global Insight to update portions of this work. Our new study, titled The Price Impact of Wal-Mart: An Update Through 2006, looks at Wal-Mart's cumulative price impact and total cost savings as of 2006.

Our findings continue to support the claim that an economy without Wal-Mart would have meant higher prices for consumers. It also concludes that the reduction in the price level due to the presence of Wal-Mart translates directly into consumer savings amounting to $287 billion in 2006—$957 per person and $2,500 per household.

Study Details

• The Price Impact of Wal-Mart: An Update Through 2006
• Understanding the Economic Impact of Wal-Mart on the U.S. Economy (2005 Study)