The Economic Impact of a Walmart Store in the Skyway Neighborhood of South Seattle Christopher S. Fowler PhD. • C.S. Fowler Consulting LLC April 5, 2012 This report was produced by C.S. Fowler Consulting LLC for Puget Sound Sage. Special thanks to the United Food and Commercial Workers 21 for 2009 wage and contract data. Over the course of 2012 Puget Sound Sage will be releasing a series of briefs and reports examining the impact of service sector industries on the Puget Sound regional economy. Author: Christopher S. Fowler PhD. C.S. Fowler Consulting LLC (206) 920-1686
[email protected] Executive Summary Recent analyses conducted in support of • Although the direct impacts resulting Walmart store development plans in the from the renovation of the site contribute Pacific Northwest are irreparably flawed by a net positive effect of $2.67 million in their failure to address offsetting losses in economic output and $1.12 million in employment and employment income that labor income during construction, this is would be the result of new store development not nearly enough to offset other changes in the saturated retail environments for which over the twenty year life of the project. these projects are proposed. • The net present value of all changes Following standard practice in regional estimated in our Base scenario over a 20 analysis, we consider the redistribution year project lifespan is projected to be in consumer sales that would occur if a a net loss of $13.07 million in economic new Walmart “neighborhood market” of output and a loss of $14.51 million in approximately 40,000 square feet were to labor income.