An Examination of Pull Factor Change in Non-metro Counties in Kansas:

1. An Examination of Pull Factor Change in Non-metro Counties in Kansas: A Study of the Economic Impact of Wal-Mart Construction Presented by Manjula Boyina Master of Regional and Community Planning

2. These stores often come with a sea of parking spaces surrounding a rectangular building that looks the same almost in any city. The Bigbox Stores General Merchandising Category Killers Figures Wal-Mart-4,300 in all 50 states of USA and international locations Target -1,107 in 47 states of USA K-Mart -1,512 in 49 states of USA

3. Impacts • Market saturation, drives retail prices lower and gives consumers many more choices. Immediate consequence: • Makes more difficult for small businesses to operate profitably” (Stone, 1995). • “Impacts character of the community” (Duerksen, Blanchard, 1998). • Impacts can be both visual and economic. Community concerns: • Monotonous visual character of the big boxes. • Displacement of the mom and pop stores of rural America.

4. Economic Development and Bigboxes Important aspect of small town planning City Officials work towards building effective economic development strategies extending within and outside the town Interrupts the growth of local businesses

5. Bigbox like Wal-Mart comes to the town with a size disproportionate to the shopping needs of the town. “An oversupply exists when there is more than one acre of commercial land for every 150 residents” (Perry and Noonan, 2001). Economic Development and Bigboxes… Effect on the local businesses is more than obvious and its dominance is extremely vivid.

6. The Study • Economic aspect • Investigates any change in the retail environment • Examines • The dominance of Wal-Mart • Economy of the community

7. Wal-Mart Pull Factor values of Host County Pull Factor values of Non-host County Years Methodology • Pull Factor, a relative measure used in studying the business of a county or region will be used to study this effect. Value around 1.00 • Tracks any positive change in the value of the Kansas county Pull Factors after the location of Wal-Mart in the county. Dr. Kenneth Stone’s research observation

8. Methodology • There are 105 counties in the state of Kansas. • Counties are assigned number codes (called Rural-Urban Continuum Codes) from “0” to “10” based on their location and urban population size. • Codes, “0”, “1”, “2” and “3” are included in the MSA’s • The MSA’s have more than one big box store- blurs the retail picture shown by the Pull Factor. • Ideal counties to include in this study would be ones with urban populations below 20,000. These include counties with RUCC of “6” and “7”

9. Wal-Marts in Kansas

10. Methodology Contd… Trade Area Boundary The geographic area that generates the majority of the customers for a business district The average of the Pull Factors of all counties within the trade area boundary of a city are used to see how much change a Wal-Mart has brought about to the Pull Factor values of the county when compared to its surroundings. Dr.Stone’s observation applied to Kansas Counties

11. Study Counties

12. Location of Selected Counties

13. Sample cases-Pull Factor trends Showing increase in value of Pull Factor-Atchison County Showing decrease in value of Pull Factor-Barton County

14. Summary

15. HOST • Addition of Wal-Mart Discount Store • 1987 • Increase in Pull Factor values • NON-HOST • No increase in Pull Factor values Atchison Doniphan Trade Area Boundary and Non-host Counties

16. HOST • Addition of Wal-Mart Discount Store • 1987 • Increase in Pull Factor values • NON-HOST • Decrease in Pull Factor values McPherson Rice Marion Trade Area Boundary and Non-host Counties…

17. Trade Area Boundary and Non-host Counties… • HOST • Addition of Wal-Mart Discount Store • 1988 • Increase in Pull Factor values • NON-HOST • Decrease in Pull Factor values Allen Woodson

18. HOST • Addition of Wal-Mart Discount Store • 1987 • Increase in Pull Factor values • NON-HOST • Decrease in Pull Factor values Barton Pawnee Rush Stafford Trade Area Boundary and Non-host Counties…

19. HOST • Addition of Wal-Mart Super center Store • 1989 • Increase in Pull Factor values • NON-HOST • Decrease in Pull Factor values Cloud Jewell Mitchell Republic Trade Area Boundary and Non-host Counties…

20. HOST • Addition of Wal-Mart Super center Store • 1985 • Increase in Pull Factor values • NON-HOST • Decrease in Pull Factor values Seward Meade Morton Stevens Trade Area Boundary and Non-host Counties…

21. HOST • Addition of Wal-Mart Super center Store • 1997 • Increase in Pull Factor values • NON-HOST • Increase in Pull Factor values Sherman Cheyenne Wallace Trade Area Boundary and Non-host Counties…

22. HOST • Addition of Wal-Mart Discount Store • 1988 • Increase in Pull Factor values • NON-HOST • Decrease in Pull Factor values Thomas Gove Logan Rawlins Sheridan Trade Area Boundary and Non-host Counties…

23. Summary

24. Results Atchison, Barton, Seward and Sherman counties did not follow the classic profile Allen County showed a percent change difference of 34 percent McPherson County showed a percent change difference of 30 percent Cloud County showed a percent change difference of 13 percent Thomas County showed a percent change difference of 45 percent

25. Conclusions Wal-Mart is a positive addition to the non-metro counties of Kansas that were included in the study Similar studies will be important in assessing the local economy At the county or city level Examination of Pull Factor trend lines while planning for Economic development

26. Recommendations Regional level plans-Mutually beneficial Wal-Mart size Pull Factor analysis

27. Questions