When Walmart pulls out of town, the stores next door don’t pick up its shoppers — their sales are down 20% a year later | Fortune
A common belief among critics of large retail chains is that the departure of a Walmart store provides a financial boost to surrounding local businesses. The theory suggests that once the retail giant leaves a community, customers will naturally redirect their spending on groceries, household goods, and various services to the smaller shops remaining in the area. However, a new study conducted by marketing scholars reveals a much grimmer reality for these neighboring enterprises. According to the research, businesses located near a closed Walmart actually experience a significant slump in both sales and foot traffic, with revenue dropping by approximately 20% just one year after the anchor store shuts its doors.
THE Impact of Anchor Closures
The researchers analyzed data from 39 Walmart locations that ceased operations across 20 different states between 2019 and 2026. By comparing these areas to regions where Walmart stores remained open, the scholars identified a dual role played by the massive retailer. While Walmart certainly competes with local shops for consumer dollars, it also functions as a vital anchor that draws people to a specific shopping district in the first place. When this primary draw disappears, the resulting loss of shared customer traffic frequently causes more financial harm to the neighborhood than the benefit gained from having one less competitor.
Economists refer to this phenomenon as an agglomeration effect. This principle suggests that businesses benefit from being clustered together because the collective presence of multiple stores makes the location itself a destination for shoppers. In many cases, a consumer's primary reason for a trip is to visit Walmart, but that journey often results in secondary stops at nearby pharmacies, hair salons, restaurants, or specialty retailers. Without the main attraction, the total pool of visitors to the area shrinks, leaving the remaining businesses with a larger share of a much
Source: fortune.com · 2026-11-14