Beyond the Big Box: Understanding the True Impact of Suburban Retail Development

As the population of cities in the United States continues to grow, so does the number of suburban developments, including big-box retail establishments. In many Western cities, the retail structure in metropolitan areas has become dominated by suburban arterial strips and shopping malls. This trend of retail suburbanization has had positive and negative impacts on US cities. On the positive side, suburban retail developments have brought convenience and affordability to residents of suburban areas by providing access to a wide range of goods and services. Additionally, these developments have generated job opportunities for individuals residing in suburban areas.

On the other hand, this trend has led to a decline in the role of central business districts as many retailers have moved out to the suburbs. This decline has resulted in a concentration of retail trade in suburban areas and an erosion of the CBD’s retailing role, creating a more dispersed urban form. Furthermore, the growth of suburban retail establishments has contributed significantly to urban sprawl, increasing car dependency and traffic congestion. As smaller ‘mom-and-pop’ shops continue to face stiff competition with large-scale discount stores, the domination of suburban retail establishments has led many small businesses to close their doors, further contributing to the decline of central business districts.

Zooming In on the Positives

In small towns, introducing commercial suburban developments such as big box retail stores can have many positive impacts that residents often appreciate. These developments bring new businesses and job opportunities to the area and provide consumers with more options for goods and services. In addition, these retail stores frequently serve as community gathering places where locals can interact and engage with one another. Yu et al. report a clear correlation between the development of large-scale retail centers in suburban areas and an increase in citizens’ quality of life in terms of shopping convenience.

Furthermore, these establishments could increase the tax base, allowing local governments to fund social programs or citywide initiatives that encourage growth throughout the town. Additionally, bringing in outside visitors may result directly from large commercial entities arriving in previously known areas providing an even wider reach and broadening potential economic stimulation through tourism, among others. Below are more potential positive effects that suburban retail establishments can have on US cities:

1. Improved Access to Products and Services: Before the advent of big box stores, residents of small towns might have had to travel long distances to find certain items or were limited to what was available in local mom-and-pop shops. For instance, a small town without a dedicated electronics store might have seen the opening of Best Buy to be a major convenience. Now, residents can buy their town’s latest electronics, appliances, and gadgets. Since big box stores also strive to be ADA-compliant, they are accessible to people with disabilities, as retail stores tend to install a wheelchair ramp at their entrances, making shopping a more inclusive experience.
2. Job Creation: These developments often create jobs for residents. For example, when a Walmart opens, it typically hires hundreds of employees. The person-hours needed can be a boon in small towns with limited job opportunities.
3. Economic Stimulus: These retail giants contribute to local taxes, which can help improve infrastructure, schools, and public services. If a Home Depot moves into a small town, the increased tax revenue could help fund the repair of local roads or the expansion of a public library, benefiting the community.
4. Increased Property Value: Commercial development can sometimes increase nearby property values because of the increased convenience and desirability. Homeowners in the town could see the value of their homes increase as a result.
5. Community Engagement: Some big box stores engage with the local community by sponsoring events, contributing to local charities, or partnering with schools. For instance, Target might support a local Little League team, improving the resources available for youth sports in the town.
6. Consumer Savings: Big box stores often sell products at lower prices than smaller retailers because they can take advantage of economies of scale. As a result, small-town residents might enjoy significant cost savings; savings when shopping could be particularly important in a community where many live on tight budgets.
7. Tourism and Attraction: While not often considered tourist attractions, big box retailers in small towns can draw visitors from surrounding areas who come to shop, leading to secondary spending at local restaurants or smaller stores. The increased foot traffic can invigorate a small town’s economy.

While these benefits can be substantial, it’s essential to remember that the impacts of big box stores on small towns can also be mixed, with some potential downsides, especially for small local businesses that may struggle to compete. It’s always a delicate balance between embracing growth and development and preserving small-town life’s unique character and economic diversity.

Don’t Count Out the Downsides

While big-box retail establishments can benefit small towns and local economies significantly, it is also important to recognize some potential downsides. One of the most significant drawbacks is that big box stores can put small local businesses at risk by taking away their customers and reducing sales. Research by Haltiwanger, Jarmin, and Krizan found that the entry of big box retailers can lead to a substantial decline in existing smaller local stores.

This decline in business can ultimately lead to a decrease in property values and tax receipts, impacting the entire community. Another potential downside is that big box stores often paid lower wages than other local employers, resulting in a depressed local economy and decreased spending power.

While commercial suburban developments such as big box retail stores can bring certain benefits to small towns, there can also be significant negative impacts. Here are a few examples:

1. Competition with Local Businesses: Perhaps the most cited disadvantage is the pressure these large stores put on small, locally-owned businesses. A Walmart moving into a small town can offer lower prices due to economies of scale, making it difficult for a local grocery store or clothing retailer to compete. Over time, these local businesses might close, eroding the town’s economic diversity and unique character.
2. Job Quality: While big box stores create jobs, they are often low-paying with limited benefits compared to positions at small businesses. For instance, an experienced employee at a local hardware store may opt for a lower-paying, entry-level job at a new Home Depot.
3. Impact on Local Character and Community: The influx of generic, national chain stores can detract from a town’s unique identity and sense of community. For example, the closure of a locally-owned coffee shop that was a community gathering spot because of competition from a new Starbucks can alter the feel of the town and displace community events.
4. Urban Sprawl and Environmental Impact: Big box stores, with their large parking lots and sprawling floor space, can contribute to urban sprawl, leading to potential environmental degradation. The sprawl can have an impact on local natural resources and wildlife. For example, constructing a large Lowe’s store might require the removal of a wooded area, displacing local wildlife and altering the town’s landscape.
5. Infrastructure Strain: Increased traffic due to commercial suburban developments can strain local infrastructure, such as roads and public services. For instance, the increased traffic from a new Walmart could lead to more road maintenance and traffic congestion, impacting residents’ quality of life and possibly increasing taxes to cover the costs.
6. Economic Instability: Dependence on a single large employer can lead to financial instability if the store decides to close or relocate. For instance, if a small town becomes dependent on the jobs and tax revenue provided by a big box retailer and that retailer closes, the city could suffer significant economic and social impacts.

These potential negative impacts underscore the need for balanced, thoughtful city planning and economic development strategies that consider both the benefits and drawbacks of commercial suburban developments in small towns.

In the grand theater of urban development, commercial suburban developments are a double-edged sword, both a protagonist and antagonist in the narrative of small American towns. On the one hand, they are like golden geese, laying eggs of convenience, affordability, and economic vitality. They introduce an expansive horizon of goods and services that was once beyond the reach of these communities. They function like beating hearts in these towns, pumping jobs and circulating prosperity throughout the arteries of local economies.

However, every story has its shadow, and the rapid proliferation of these commercial giants is not without its dark side. The presence of these large retailers is often a bitter pill for the local ‘mom-and-pop’ shops to swallow, leaving them struggling to compete, sometimes to the point of extinction. The result is an erosion of local character and uniqueness, akin to planting a generic monoculture where a diverse ecosystem once thrived.

Moreover, like unchecked vines, they contribute to urban sprawl, extending the reach of the concrete jungle while increasing our dependency on cars and the resulting traffic congestion. They act as dams, diverting the economic lifeblood from central business districts, and like giants, their steps can strain and crack local infrastructures due to increased traffic and pressure.

In the ebb and flow of small-town life, these commercial developments indeed bring in a tide of possibilities, lifting all boats in the harbor. Yet, they can also cause a riptide, sucking the vibrancy from the heart of these communities and local businesses. Balancing these effects requires a wise navigator to chart a course that capitalizes on the tide while guarding against the potential whirlpool. It’s a delicate dance, a tightrope walk, a story still being written on the pages of American cities and small towns. As cities and small towns navigate the impact of commercial suburban developments, it is crucial to consider both the immediate benefits they provide and their long-term consequences.

Cities and towns must weigh the benefits of convenience and affordability against potential negative impacts such as loss of local character, increased traffic congestion, and economic strain on local businesses.

Not only can the unchecked proliferation of large retailers cause economic strain on local businesses, but it may also lead to a loss of community character and an increase in traffic congestion and urban sprawl. Finding a balance between the convenience and affordability provided by large retailers and preserving local character, and promoting economic growth for small businesses is essential. Cities and towns need to approach the issue of suburban developments carefully, considering both short-term benefits and long-term consequences. At the end of the day, it is necessary to ensure that suburban developments are carried out responsibly, with a focus on sustainability and community well-being.