October 30, 2012
There have been studies that show small businesses located near a Walmart that sell similar items are more likely to fail, said Jenny Schuetz, assistant professor with the USC Price School of Public Policy.
"Wal-Mart is the 800-pound gorilla of the retail industry," Schuetz said. "The mom and pop stores don't have the same kind of bargaining power and so they are paying a higher price directly from the suppliers and that gets passed along to consumers in a higher markup."
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