STORES Magazine - February 2008 - (Page 16) trEnDS COMPILED BY STORES EDITORS Casting Doubt on the “Wal-Mart Effect” For years, Wal-Mart has been dogged by critics enumerating the alleged negative economic effects its stores have on local communities. Now, research conducted by the Federal Reserve Bank of Minneapolis finds that the world’s largest retailer has actually had a negligible economic influence. Senior economist Terry J. Fitzgerald writes in the bank’s fedgazette newspaper, after examining a number of measures, “Wal-Mart’s impact is probably a net positive, and overall its footprint on a community’s well-being appears smaller than most perceive. “Wal-Mart is not the threat that many fear, at least in terms of economic benchmarks commonly associated with healthy, growing communities,” he wrote. The study examined 40 counties that saw Wal-Mart come to town between 1986 and 2003 and compared them with 49 similarly sized non-Wal-Mart counties on benchmarks like jobs, population, income and poverty. According to the findings, Wal-Mart’s entry slightly boosted business growth, employment and earnings compared with counties without a Wal-Mart. “We cannot say that Wal-Mart is directly responsible for any particular outcome, positive or negative, in the counties investigated,” Fitzgerald wrote. “Proving a causal relationship between Wal-Mart and local economic trends is rife with complications. Indeed, such complexity is one of the reasons controversy continues to swirl around the company.” Additionally, fears that Wal-Mart’s arrival cripples local businesses were not borne out, Fitzgerald said. Median business establishment in Wal-Mart counties was stronger than in non-Wal-Mart counties during the period under review. A “Beary” Virtual World Move over, Webkinz: there’s a new kids’ community in the virtual world. In December, Build-A-Bear Workshop became the first children’s retailer to have a virtual world presence. Children can bring their furry friends to life in the company’s aptly named buildabearville.com. Kids are able to create a unique character and decorate their own Cub Condo. By participating in games and quests, citizens of buildabearville can earn BearBills, the currency of this kid-friendly online space. Membership to the site is free and does not expire. More than 53 million stuffed animals have been made at Build-A-Bear Workshops in North America and the U.K. over the last 10 years, says founder and chief executive bear Maxine Clark. “We feel that buildabearville.com is a great way for guests to continue to enhance their relationships with their furry friends and with our brand.” Buildabearville “reflects the core values of Build-A-Bear Workshop,” she says. “It allows children to have fun as they grow their friendships and learn about being an active participant in the community.” Buildabearville.com debuted with plenty of fanfare, including an in-world appearance by Clark, who handed out exclusive virtual prizes. Last month, Huggable Heroes from the last four years arrived to encourage and empower kids to be young leaders and change the world. Build-A-Bear Workshop is helping to ensure the safety of WWW.STORES.ORG 16 STORES / FEBRUARY 2008 http://buildabearville.com http://buildabearville.com http://Buildabearville.com http://WWW.STORES.ORG
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