Why they receive concessions.
"Why they receive concessions."
They receive concessions because they pitch their story to municipalities, saying the they will create jobs, increase tax base, etc. In reality, they don't create jobs, they transfer jobs, frequently from businesses that have closed. And they usually pay less and/or only allow their employees to work a certain number of hours a week (less than 40 hours per week). They usually have minimal benefits. Wal-Mart also employs fewer people per dollar sold than smaller retailers. They may cause a rise in tax revenues for the town that has the Wal-Mart located in it because shoppers will come from outlying areas, but it causes a drop in revenues for the businesses in outlying areas and a consequent drop in tax revenues in those areas.
The bottom line is: There is only "X" amount of merchandise that is going to be purchased at Wal-Mart, or any other retailers. So there is a finite amount of tax revenue possible. It is mostly commodity merchandise. If Wal-Mart sells it cheaper, there is less tax revenue. Wal-Mart has the effect of "consolidating": shoppers buy more at one location and fewer employees to sell the merchandise. Anyone looking for high quality merchandise will need to shop outside of the locale if the specialty retailers were not able to stay in business.
I'm all for the free market but I am not for Wal-Mart gaining concessions that are not available to all businesses, especially since having a Wal-Mart lowers the number of people required to sell the merchandise and Wal-Mart does not create sales of more merchandise, it just takes the sales from other retailers. If a business can't compete on a level playing field, then so be it. Many specialty retailers could compete by providing superior service and products. But since they are working on the slimmest of profit margins, just a small loss of business to Wal-Mart can make it not worthwhile keeping the lights turned on.
Wal-Mart is a great American success story but their propaganda about benefiting the community is 99% lies.