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Economic & Fiscal Impacts of Walmart 1 on Washington, DC
Economic & Fiscal Impacts of
Walmart 1 on Washington, DC
Economic & Fiscal Impacts of Walmart 1 on Washington, DC Walmart at 5939 Georgia Ave. NW

Walmart at 5939 Georgia Ave. NW

1 – Wal-Mart Stores, Inc.

Walmart at 99 H St. NW

January 2015

Table of Contents Introduction 2 Executive Summary 5 Background Key Findings 10 14 HR&A Advisors, Inc.

Table of Contents

Introduction 2 Executive Summary

5

Background Key Findings

10

14

INTRODUCTION HR&A Advisors, Inc. Economic Impacts of Walm art on Washington, DC 2

INTRODUCTION

About HR&A

HR&A Advisors, Inc. (HR&A) is an industry leading real estate, economic development, and public policy consulting firm based in New York City, with offices in Washington, DC, and Los Angeles.

The firm has worked with numerous public agencies, non-profit civic organizations, and private sector corporations across the country to assess the economic and fiscal benefits of business operations, real estate developments, tourism, infrastructure projects, and public policies.

Walmart engaged HR&A to analyze economic and fiscal impacts of its open and planned stores in the District of Columbia.

HR&A investigated a series of hypotheses at the scale of the District and neighborhood levels. The impacts HR&A studied included:

– Walmart’s role in providing retail offerings to a generally underserved market;

– Jobs created through construction and operations in open and planned stores;

– The benefit of bringing fresh and affordable food to neighborhoods lacking options;

– The anchoring impact of bringing a large retail amenity to neighborhoods; and

– The impact of Walmart and the Walmart Foundation’s charitable contributions.

EXECUTIVE SUMMARY HR&A Advisors, Inc. Economic Impacts of Walm art on Washington, DC 5

EXECUTIVE SUMMARY

Executive Summary

The District of Columbia has long lacked sufficient retail options for its diverse and growing base of residents. For years, District residents have had to travel to surrounding jurisdictions to shop for basic goods, costing the District lost sales taxes and undercutting the City’s efforts to support more vibrant, mixed-use neighborhoods. Unmet retail potential in Washington, DC is estimated at over $3 billion per year.

Walmart’s arrival in the District in December 2013 is stemming that negative trend, while delivering an array of other benefits to the District and its residents. One year after the first two Walmart stores opened in the District, a study commissioned by Walmart and conducted by HR&A Advisors defines these benefits.

Executive Summary

Walmart can save a DC family of four approximately $1,300 per year – 18% of the average DC household’s annual grocery store bill – on food and other typical grocery store items. 1 In addition, each District Walmart will bring fresh food at affordable prices to areas identified by the U.S. Department of Agriculture as food deserts.” Every District Walmart store is or will be in locations where healthy food shopping options make up less than 10% of the current neighborhood retail offerings.

Walmart will generate more than $6 million in taxes to the District this year based on the operations of its 2 open stores. These net new revenues can help the District meet a wide array of needs. By way of example $6 million in District revenue could support the annual costs of:

Salaries for nearly 120 teachers or police officers;

Refurbishments of 6 playgrounds; or

Debt service on bonds for the construction of 6 new or significantly modernized community centers. 2

  • 1 - Based on HR&A anal ysis of industry benchmark market comparison data published in 2013.

  • 2 - Assumes a level-debt service payment over a 20 year period with a 5% interest rate.

Executive Summary

Construction of the first two stores and the Fort Totten store, which is currently under construction, supports 630 direct and multiplier jobs. In addition to direct construction industry employment, ancillary jobs are supported in the architecture, engineering, food service, and health care industries.

Walmart’s two stores employ more than 700 people, of which 65% are District residents. Walmart is responsible for half the growth in retail jobs in the District in 2013. Walmart stores in the District hire more people per foot of store space than other grocery or convenience stores on average. A higher percentage of Walmart employees live in the same ward as the store than is typical for all employment in the 2 wards with open stores.

810 total jobs (direct employment by Walmart plus multiplier jobs) are supported by Walmart’s first two stores. In addition to direct retail industry employment, ancillary jobs are supported in the real estate, food service, and health care industries.

Executive Summary

Walmart is catalyzing additional community investment in parts of the District that need it. More than 26,000 SF square feet of additional new development including restaurants, banks, and retailers – and more than 300 new residential units are directly attributable to the open Walmart stores.

Walmart and the Walmart Foundation’s support for District community-based social service organizations has also generated significant economic and fiscal benefits for the city. HR&A estimates that Walmart and the Walmart Foundation’s $14 million philanthropic investment in the District between FYE 2010 and FYE 2014 has generated 160 jobs and $16.5 million in total compensation at more than 200 organizations.* These organizations generate additional benefits to the District through their activities.

For example, the Walmart Foundation’s $3 million investment in the Washington@Work customer service training program was created to help District residents get the skills and training they need to gain employment. The Community Foundation for the National Capital Region has reported that Washington@Work has resulted in 618 job placements and 30 promotions since 2011.

*Note: Walmart's fiscal year starts Feb. 1 and ends Jan. 31.

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 99

BACKGROUND HR&A Advisors, Inc. Economic Impacts of Walm art on Washington, DC 10

BACKGROUND

Walmart opened two stores in the District of Columbia in December 2013 and plans to open three additional stores.

Georgia Ave NW OPENED: December 2013 105,000 Sq. Ft. Fort Totten Under Construction 118,000 Sq. Ft.
Georgia Ave NW
OPENED: December 2013
105,000 Sq. Ft.
Fort Totten
Under Construction
118,000 Sq. Ft.
H St NW
OPENED: December 2013
85,000 Sq. Ft.
Capitol Gateway
Planned
130,000 Sq. Ft.
Skyland
Planned
125,000 Sq. Ft.
Walmart opened two stores in the District of Columbia in December 2013 and plans to open
Walmart opened two stores in the District of Columbia in December 2013 and plans to open
Walmart opened two stores in the District of Columbia in December 2013 and plans to open
Walmart opened two stores in the District of Columbia in December 2013 and plans to open
Walmart opened two stores in the District of Columbia in December 2013 and plans to open

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 1111

These stores will be highly accessi ble to over half the District's population.

Georgia Fort Ave Totten H St Capitol Gateway Skyland Source: KLNB Retail; US Census; HR&A
Georgia
Fort
Ave
Totten
H St
Capitol
Gateway
Skyland
Source: KLNB Retail; US Census; HR&A

62% of the City

Trade areas cover 42 of the District’s 68 total square miles.

57% of the Residents

370,000 of the 647,000 DC residents live in these trade areas.

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 1212

Walmart store locations are or will be easily accessible by public transportation, facilitating access by residents and workers.

Georgia Ave Fort Totten H St Capitol Gateway Skyland Source: WMATA; HR&A
Georgia
Ave
Fort
Totten
H St
Capitol
Gateway
Skyland
Source: WMATA; HR&A
 

Average

Average

Walmart Location

Buses / Hour

Trains/Hour

Urban Locations

Georgia Ave, DC

22

0

H St, DC

61

0

Fort Totten, DC

46

14

Capitol Gateway, DC

6

10

Skyland, DC

31

0

Suburban Locations

Landover, MD

8

0

Alexandria, VA

7

0

Compared to nearby suburban locations, all the Walmart locations in DC are more accessible by transit. Having reliable access to

employment helps workers obtain and keep jobs.

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 1313

KEY FINDINGS HR&A Advisors, Inc. Economic Impacts of Walm art on Washington, DC 14

KEY FINDINGS

Finding #1: Walmart is providing much needed new retail in Washington, DC. HR&A Advisors, Inc. Economic

Finding #1: Walmart is providing much needed new retail in Washington, DC.

The District loses out on approximately $3 billion in spending each year due to a lack of shopping opportunities.

 

$6 B

 

$3 B

$6 B $3 B

$3 B

Lost

Spending

Potential Spending

Current Spending

Note: A 2008 study by Social Compact estimated that the District misses out on $1 billion per year on retail spending. Publically available information on this study does not describe the methodology employed by this study. A similar recent study has shown a retail gap estimate of $2.8 billion for the District (DC Development Report, Washington, DC Economic Partnership, 2014).

Source: ESRI, 2013; ICSC; U.S. Census Bureau LEHD; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 1616

Like many, but not all, other cities, the District is experiencing a shortage of retail options.

$30 $12.6 B $25 $20 $2.2 B $4.6 B $15 Surplus $7.3 B $2.2 B $10
$30
$12.6 B
$25
$20
$2.2 B
$4.6 B
$15
Surplus
$7.3 B
$2.2 B
$10
$5
$0
Billions

Washington, DC

Charlotte, NC

Chicago, IL

San Francisco, CA

Like many, but not all, other cities, the District is experiencing a shortage of retail options.

Potential Spending

Like many, but not all, other cities, the District is experiencing a shortage of retail options.

Current Spending

Source: ESRI, 2013; HR&A

Seattle, WA

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 1717

On a per resident and worker basis, the District is more under-retailed than other cities.

Retail Gap, per Individual

$8,000 $6,000 $4,000 $2,000 $- $(2,000) $(4,000)
$8,000
$6,000
$4,000
$2,000
$-
$(2,000)
$(4,000)

Washington,

DC

Charlotte, NC

Source: ESRI, 2013; HR&A

Chicago, IL

San Francisco, CA

Seattle, WA

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 1818

Retail growth in DC has primarily been in specialized sectors, with a decline in supermarkets and department stores.

Percentage Change in the Number of Stores, 2006-2012

Office Supplies and Stationery Sporting Goods Cosmetics and Beauty Pet and Pet Supplies Convenience Beer, Wine, and Liquor Department Home Centers Supermarkets Clothing Specialty Food Hardware Nursery and Garden Florists Discount Department Sewing and Needlework -100% -80% -60% -40% -20%

Retail growth in DC has primarily been in specialized sectors, with a decline in supermarkets and

0%

20%

40%

60%

Source: US Census County Business Patterns; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 1919

The shortfall in potential spending in the District is seen across all major Walmart supply categories.

Current Spending vs. Potential Spending

$2,500 $2,000 $1,500 $1,000 $500 $- Grocery Health & Personal Care General Clothing Merchandise Electronics &
$2,500
$2,000
$1,500
$1,000
$500
$-
Grocery
Health &
Personal Care
General
Clothing
Merchandise
Electronics &
Appliances
Current Spending
Potential Spending
Millions

Source: ESRI, 2013; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 2020

Walmart’s market entry aligns with the priorities of several key District wide retail initiatives.

Walmart’s market entry aligns with the priorities of several key District wide retail initiatives. 2010 –
Walmart’s market entry aligns with the priorities of several key District wide retail initiatives. 2010 –
Walmart’s market entry aligns with the priorities of several key District wide retail initiatives. 2010 –
 

2010

– Retail Action Roadmap

Filling in the gaps in neighborhood markets;

Creating new business concentrations;

Cultivating and strengthening locally owned small businesses.

2012

– Retail Action Roadmap

Providing a greater selection of products and services; Supporting thriving retail streets in the District.

2012

– Retail Action Strategy

Strengthening the city’s retail base at both the citywide and local scale; Promoting vibrant commercial districts with a broad range of retail

businesses; Creating expanded opportunities for small and local retailers.

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 2121

Finding #2: Walmart is providing needed affordable shopping to the District. HR&A Advisors, Inc. Economic Impacts

Finding #2: Walmart is providing needed affordable shopping to the District.

Between 2011 and 2013, DC housing costs grew steadily, while disposable income flattened, driv ing the need for affordable retail.

Household Income vs Housing Cost

Disposable Income Housing Cost 1 2010 2011 2012 2013
Disposable Income
Housing Cost 1
2010
2011
2012
2013

1 - Indexed housing prices are uses as a proxy for housing cost.

Source: Housing Prices - HFHA House Price Index; Disposable Income - Bureau of Economic Analysis, Disposable Income Summary, DC; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 2323

Retail growth has been concentrated in higher end stores.

Retail growth has been concentrated in higher end stores. CITY CENTER GEORGETOWN 14 STREET PENN QUARTER

CITY CENTER

Retail growth has been concentrated in higher end stores. CITY CENTER GEORGETOWN 14 STREET PENN QUARTER

GEORGETOWN

Retail growth has been concentrated in higher end stores. CITY CENTER GEORGETOWN 14 STREET PENN QUARTER

14 th STREET

Retail growth has been concentrated in higher end stores. CITY CENTER GEORGETOWN 14 STREET PENN QUARTER

PENN QUARTER

Images: BadWolfDC; DC UrbanTurf; Washington CityPaper; ThreadConscious.com

Items for sale at Walmart are more affordable than in most grocery stores in the District.

In a comparison of a basket of off-brand items, Walmart offered the lowest price when compared to the largest competitors in the DC market.

Items for sale at Walmart are more affordable than in most grocery stores in the District.

$54

$75
$75

Off Brand Basket Price

Items for sale at Walmart are more affordable than in most grocery stores in the District.
Items for sale at Walmart are more affordable than in most grocery stores in the District.

$83

$88

$93 $94
$93
$94
Items for sale at Walmart are more affordable than in most grocery stores in the District.

$95

Difference from Walmart

- 28%

0%

+11%

+17%

+24%

+25%

+27%

Source: Estimates are based on 2014 HR&A analysis of October 2013 industry benchmark data from Checkbook.org, Super Market Comparison as reported in "Guess Which DC Grocery Store is Cheapest and Which is Most Expensive", Anthony Sodd, October 2013, Streetwise Media. http://dcinno.streetwise.co/2013/10/24/guess-which-dc-grocery-store-is-cheapest-andwhich-is-most-expensive/; HR&A.

Walmart can save a DC family of four approximately $1,300 per year, based on industry benchmarks.

Average annual cost of food for a household in the District

=

$7,300

Average discount below other DC chain grocery stores

Average annual savings for a DC household

=

18%

=

$1,300

Source: Estimates are based on 2014 HR&A analysis of October 2013 industry benchmark data from Checkbook.org, Super Market Comparison as reported in "Guess Which DC Grocery Store is Cheapest and Which is Most Expensive", Anthony Sodd, October 2013, Streetwise Media. http://dcinno.streetwise.co/2013/10/24/guess-which-dc-grocery-store-is-cheapest-andwhich-is-most-expensive/;Washington, DC Economic Partnership; HR&A.

Finding # 3: The economic and fiscal benefits from Walmart in the District begin with store

Finding # 3: The economic and fiscal benefits from Walmart in the District begin with store construction.

The construction of 3 Walmart stores will support 630 jobs over the construction period.

630

Jobs 480 150 Direct Multiplier Jobs Jobs
Jobs
480
150
Direct
Multiplier
Jobs
Jobs

Source: Walmart; IMPLAN; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 2828

Finding # 4: The opening of 2 stores in December 2013 has produced immediate benefits to

Finding # 4: The opening of 2 stores in December 2013 has produced immediate benefits to the District.

The two open Walmart stores currently support 810 jobs in the District from direct and multiplier impacts.

810

Jobs 740 70 Direct Multiplier Jobs Jobs
Jobs
740
70
Direct
Multiplier
Jobs
Jobs

Source: Walmart; IMPLAN; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 3030

The two open stores will generate approximately $6.4 million in annual tax revenues to the District.

$6.4 Million

Annual Tax Revenues Corporate Sales Property Business Tax Tax Personal Income Tax Tax
Annual Tax Revenues
Corporate
Sales
Property
Business
Tax
Tax
Personal
Income Tax
Tax

Source: Walmart; IMPLAN; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 3131

$6.4 Million in taxes can fund a range of ongoing District costs and initiatives.

For example:

$6.4 Million in taxes can fund a rang e of ongoing District costs and initiatives. For

Salaries for nearly 120 Police officers

$6.4 Million in taxes can fund a rang e of ongoing District costs and initiatives. For

Salaries for nearly 120 teachers

6 playground renovations

Debt service on bonds for the construction of 6 new or significantly modernized community centers*

Note: *Assumes a level-debt service payment over a 20 year period with a 5% interest rate. Source: Walmart; IMPLAN; DC Office of Tax and Revenue; Alex Waza (Icon); DCPS; MPDC; HR&A

Finding # 5: Walmart’s two stores are employing DC residents. HR&A Advisors, Inc. Economic Impacts of

Finding # 5: Walmart’s two stores are employing DC residents.

Walmart is bringing jobs to the District.

Over 700 people are employed at open locations The majority are full-time employees Over 65%
Over 700 people are employed at open
locations
The majority are full-time employees
Over 65% of current associates are DC
residents

Source: Walmart; Image: Massa Montalto Architects

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 3434

Walmart is supporting local hiring by employing a higher percentage of ward residents compared to the average in all wards.

Percentage of Workers Living and Working in the Same Ward

25% % Walmart Employees 19% 20% % Ward Workers that Live in Ward 14% 15% 11%
25%
% Walmart Employees
19%
20%
% Ward Workers that Live in Ward
14%
15%
11%
10%
10%
10%
9%
8%
6%
5%
5%
5%
0%
Ward
Ward
Ward
Ward
Ward
Ward
Ward
Ward
4
6
1
2
3
5
7
8
Workers
14,930
123,952
23,312
369,258
37,102
48,386
5,461
11,953
in Ward

Ward 4:

Ward 6:

Ward 1:

Ward 2:

Ward 3:

Ward 5:

Ward 7:

Ward 8:

Brightwood

Capitol Hill

Adams Morgan

Downtown

Cleveland Park

Bloomingdale

Benning

Anacostia

Crestwood

Capitol Riverfront

Columbia Heights

Dupont Circle

Friendship Heights

Brookland

Capitol View

Congress Heights

Fort Totten

NoMa

Howard University

Georgetown

Tenleytown

Eckington

Hillcrest

Douglass

Petworth

Southwest Waterfront

LeDroit Park

West End

Woodley Park

Trinidad

Skyland

Washington Highlands

Source: Walmart; U.S. Census Bureau LEHD, 2011; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 3535

Walmart accounted for over half of the growth in retail trade jobs in the District of Columbia due to its two store openings in 2013.

5.3% Percentage Change in Employment, Retail Trade, 2013 3.4% 2.2% 1.1% -3.8% Total 2009 2010 2011
5.3%
Percentage Change in Employment, Retail Trade, 2013
3.4%
2.2%
1.1%
-3.8%
Total
2009
2010
2011
2012
2013
Retail
17,800
18,400
18,600
19,000
19,300
Jobs

Walmart

Employment

Source: BLS; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 3636

Jobs at the open stores contributed to the retail trade sector outpacing total job growth by almost 4x in 2013.

Employment Changes

5.3%

3.4% 2.2% 2.0% 1.5% 1.4% 1.1% 1.2% -0.3% -3.8% 2009 2010 2011 2012 2013 Total Retail
3.4%
2.2%
2.0%
1.5%
1.4%
1.1%
1.2%
-0.3%
-3.8%
2009
2010
2011
2012
2013
Total
Retail Trade

Source: BLS; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 3737

Each Walmart in the District supports more employment than an average grocery or food store.

Employees per 1,000 Square Feet

3.6

2.0 1.1
2.0
1.1

Walmart DC Store

Average Grocery Store

Notes:

Convenience Store

(Grocery, food mart, & convenience store)

Buildings used for retail or wholesale of food: grocery store or food market, gas station with a convenience store, convenience store. The average grocery store is 33,000 SF Data include all jobs, full time or part time, not full time equivalents.

Source: Walmart, Progressive Grocer, U.S. DOE Commercial Buildings Energy Consumption Survey; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 3838

Finding #6: Walmart and the Walmart Foundation are providing significant support to DC charities. HR&A Advisors,

Finding #6: Walmart and the Walmart Foundation are providing significant support to DC charities.

Between FYE 2010 and FYE 2014, Walmart and the Walmart Foundation have awarded over $14 million to no t-for-profit organizations in DC.

Community Development $0.4 M Environment & Sustainability $0.2 M Education $0.9 M Other $2.3 M Workforce
Community
Development
$0.4 M
Environment &
Sustainability
$0.2 M
Education
$0.9 M
Other $2.3 M
Workforce
Development
$6.6 M
Health &
Wellness
$3.7 M

Source: Walmart; Walmart Foundation; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 4040

HR&A estimates these contributions have created and supported jobs at recipients, affiliated not-for-profits, and local businesses.

185

Jobs

140

Direct +

45

Multiplier

$16.5 M

Employee Compensation

$13.0 M Direct

+

$3.5 M Multiplier

Source: Walmart; IMPLAN; HR&A

$197,000

Tax Revenue 1

$93,000 + $104,000

Direct

Multiplier

1 – Sales + income tax. Income tax from employees and sales tax from multiplier activities.

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 4141

The $3 million Walmart Washington@Work Work Readiness Initiative supported a range of individuals in the District.

As reported by the Community Foundation for the National Capital Region, based on the $1.5 million grant they received:

 

739

1,047

Individuals

370

618

Program Graduates

Improved their

Job Placements

Basic Skills

  • 464 Enrolled in Post-

Earned a Credential

Secondary Education or Training

30

Earned a Promotion

Note: Education and employment results as reported by The Community Foundation for the National Capital Region. The Community Foundation received $1.5 million from the Walmart Foundation. The University of the District of Columbia (UDC) also received $1.5 million . The numbers reported above do not include data from UDC's grant award.

Source: The Community Foundation for the National Capital Region

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 4242

As a result of the Washington@Work partnership, the Community Foundation's five subgrantees successfully raised $13.7 million from additional sources.

Walmart Washington@Work

Additional Grants

As a result of the Washington@Work partnership, the Community Foundation's five subgrantees successfully raised $13.7 million
As a result of the Washington@Work partnership, the Community Foundation's five subgrantees successfully raised $13.7 million
As a result of the Washington@Work partnership, the Community Foundation's five subgrantees successfully raised $13.7 million
As a result of the Washington@Work partnership, the Community Foundation's five subgrantees successfully raised $13.7 million

Source: The Community Foundation for the National Capital Region

As a result of the Washington@Work partnership, the Community Foundation's five subgrantees successfully raised $13.7 million
As a result of the Washington@Work partnership, the Community Foundation's five subgrantees successfully raised $13.7 million

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 4343

Finding #7: Walmart is increasing access to fresh and healthy foods. HR&A Advisors, Inc. Economic Impacts

Finding #7: Walmart is increasing access to fresh and healthy foods.

Each Walmart is located in a USDA identified food desert, meaning the areas have limited access to grocery stores.

Each Walmart is located in a USDA identified food desert, meaning the areas have limited access

Residents live more
than ½ mile from a grocery store

Residents live more
than 1 mile from a grocery store

Food Desert:

A census tract with a substantial share of residents who live in low-income areas with low levels of access to a grocery store or healthy, affordable food retail outlets.

Source: U.S. Department of Agriculture (USDA) Economic Research Service (ERS); Food Environment Atlas; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 4545

In fact, Walmart stores are in locations where healthy food shopping options make up less than 10% of the local retail offerings.

In fact, Walmart stores are in locations where healthy food shopping options make up less than

Source: United States Centers for Disease Control and Prevention; HR&A

Modified Retail Food Environment Index

  • No healthy food

  • 0.1% - 5%

  • 5.1% - 10%

  • 10.1% – 37.5%

Modified Retail Food Environment Index (mRFEI):

The CDC’s Division of Nutrition, Physical Activity and Obesity, measure of the number of healthy and less healthy food retailers in an area.

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 4646

Access to healthy food is a pressing problem, but 4 out of 5 Walmart stores are located in wards with obesity rates over 60%.

Percentage of Overweight or Obese Residents per Ward

Ward 4: 66% Ward 3: 44% Ward 1: Ward 5: 62% 69% Ward 2: 52% Ward
Ward 4:
66%
Ward 3:
44%
Ward 1:
Ward 5:
62%
69%
Ward 2:
52%
Ward 6:
43%
Ward 7:
86%
Ward 8:
76%

Source: DC Department of Health; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 4747

Walmart provides a range of grocery items and sales in this category are 41% of the total.

Grocery Sales Non-grocery Sales 41% 59%
Grocery
Sales
Non-grocery
Sales
41%
59%

Source: Walmart; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 4848

Finding #8: Walmart enhances economic development in neighborhoods. HR&A Advisors, Inc. Economic Impacts of Walm art

Finding #8: Walmart enhances economic development in neighborhoods.

Walmart stores in the District are serving as development anchors and bring a range of development types.

Freestanding along a retail corridor. Georgia Ave NW
Freestanding along
a retail corridor.
Georgia Ave NW
Integrated within a mixed-use building. H St NW & Fort Totten
Integrated within a
mixed-use building.
H St NW
&
Fort Totten
Anchoring a large scale development. Skyland & Capitol Gateway
Anchoring a large
scale development.
Skyland
&
Capitol Gateway
Georgia Ave NW Fort Totten Capitol Gateway
Georgia Ave NW
Fort Totten
Capitol Gateway

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 5050

Benefits are derived from the construction of Walmart stores, but also as anchors to larger developments.

Walmart stores at H St. and Fort Totten provide a retail amenity to over 650 residential units.

At Capitol Gateway Marketplace, Walmart is anchoring 26,000 square feet of retail and 312 residential units.

The Walmart at Skyland Town Center will anchor over 200,000 square feet of retail and 476 residential units.

There is a precedent of big box retail development in the District revitalizing neighborhoods.

There is a precedent of big box re tail development in the District revitalizing neighborhoods. Columbia

Columbia Heights is located in

Northwest

DC and is considered today to be one of the

District’s

most

diverse

and

economically

strong neighborhoods.

Facing

economic

challenges between the 1970’s and 1990’s,

the area was designated an Enterprise Zone

in

1997

and Columbia Heights received a

range of tax-incentives and District financing

to encourage private development. Redevelopment was focused around the Columbia Heights Metro stop, which opened

in 1999 and served to anchor future

residential, retail, development.

and commercial

In early 2008, DCUSA opened the largest retail development in DC at the time, with 890,000 SF of retail adjacent to the Columbia Heights Metro. The retail building is anchored by a two- story Target, along with other retailers such as Bed Bath & Beyond, a Best Buy, and a Washington Sports Club. Since opening, the DCUSA site has served to anchor the development of 1,300 multifamily units with ground floor retail, and a 55,000 SF Giant supermarket open 24 hours a day.

There is a precedent of big box re tail development in the District revitalizing neighborhoods. Columbia

The successful redevelopment of Columbia Heights serves as a benchmark for the anchoring effects of affordable big-box retail.

Georgia Fort Ave Totten Columbia Heights Capitol Gateway H St Skyland
Georgia
Fort
Ave
Totten
Columbia
Heights
Capitol
Gateway
H St
Skyland

Source: CoStar; site surveys; Walmart; HR&A

Retail Stores per 1,000 Residents

10 9 8 7 6 5 4 3 2 1 0 Columbia H St. Georgia Ft.
10
9
8
7
6
5
4
3
2
1
0
Columbia
H St.
Georgia
Ft. Totten
Skyland
Captiol
Ave
Gateway
Heights
Number of Stores

Residents around Columbia Heights have up to 10x more retail stores than residents in other areas of the District.

Compared to established retail areas, Walmart is entering into under- retailed neighborhoods.

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 5353

A diversity of business types co-locate around Walmart stores.

Walmart’s arrival brings foot traffic, and signals to other retailers the potential strength of a location.

A diversity of business types co-locate around Walmart stores. Walmart’s arrival brings foot traffic, and signals
A diversity of business types co-locate around Walmart stores. Walmart’s arrival brings foot traffic, and signals

Art Supplies

Beauty Supplies/Salon

Books & Comics

Childcare Services

Clothing Related

Florists

Food & Beverage

Home Furnishings

Mail/Shipping

Pet

Professional Services

Stationary

Specialty Grocers

Vitamin and Nutrition

Source: Walmart; HR&A

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 5454

The new Walmarts are catalyzing new retail investment in the surrounding neighborhoods.

Georgia Ave Walmart New retail establishments have opened in the commercial area adjacent to and around
Georgia Ave Walmart
New retail establishments have opened in
the commercial area adjacent to and
around Walmart, including a bank,
restaurants, a gym and a salon.
The Fitness
Factory
Decadence
Restaurant
B Forever
Flawless Salon
Source: Walmart; JBG; HR&A
99 H St. Walmart 4 out of 5 store spaces in the 10,000 SF of ancillary
99 H St. Walmart
4 out of 5 store spaces in the 10,000 SF
of ancillary retail are occupied by a
range of businesses serving local
residents and workers.
CH Brite
Cleaners

HR&A Advisors, Inc.

Economic Impacts of Walmart on Washington, DC 5555

Economic & Fiscal Impacts of Walmart on Washington, DC HR&A Advisors, Inc. 2101 L Street, NW

Economic & Fiscal Impacts of Walmart on Washington, DC

HR&A Advisors, Inc. 2101 L Street, NW Suite 800 Washington, DC 20037

202-903-0725