Critics used outdated, faulty studies in their attack on Walmart

In an effort to further educate residents of Tacoma about the economic benefits a Walmart store would bring to the area, we’d like to take the opportunity to set the record straight about claims made in a recent Viewpoint, “Research indicates new Walmart store could hurt Tacoma’s economy” (TNT, 1-22).

A new Walmart in Tacoma would provide approximately 350, mostly full-time jobs. That number goes even higher when the jobs associated with building a new store are taken into account. Bard Luippold and Justin D. Leighton dismiss these jobs as insignificant, referencing a study that claims for every two jobs Walmart creates, three would be lost. Not only is the study largely based on data from 1995, it is also based on incomplete information.

When the overall job picture is considered – the one that includes jobs in hospitality, construction, services, nonprofits and specialty retailers, etc. – the net outcome is overwhelmingly positive. More recent and complete studies by independent parties have shown this to be the case.

The authors also recycle the same, old talking points regarding wages, citing a flawed paper written by researchers at the University of California Berkeley (in this case, the study was eventually deemed to be partially based on newspaper accounts rather than verifiable research).

Not only do our average, full-time hourly wages far surpass the federal minimum wage, they exceed the Washington state minimum wage – the highest in the nation – by some 40 percent. As of October 2011, the average wage for regular full-time hourly Walmart associates in Washington is $12.79 per hour. Our wages and benefits are competitive and meet or exceed those offered by a majority of our competitors.

The Loyola University Chicago study that the authors reference has been discredited so many times that it’s surprising they would even try to resurrect its findings. A complete analysis can be found at walmartchicago.com/loyola – but one doesn’t have to look much further than an editorial from the Chicago Sun-Times that calls it “a cheap shot at Walmart.” The neighborhood’s own alderman wrote Walmart “has been a boon to (her) constituents.”

The bottom line is this: Anyone who has been to the west side of Chicago and walked the neighborhood that surrounds our store knows the tremendous positive impact Walmart has had on the community. Perhaps the authors should pay a visit.

Lastly, the authors criticize Walmart for requesting a value reassessment for our five Pierce County properties.

First of all, requesting reassessments are common practice, especially when there is a downturn in the market. More importantly, though, we follow all state and local rules and regulations, including those involving taxes and fees. To that end, in fiscal year 2011 we collected on behalf of the state of Washington more than $235.9 million in sales taxes, and we paid more than $44.2 million in state and local taxes in the state.

We’re finding that the more people learn facts about the company – as opposed to the urban myths peddled by the Viewpoint authors – the more they see the value in bringing a Walmart store to their community. We’re proud of the contributions we make in communities across the country – from creating jobs and generating tax revenue to helping customers save and contributing to local nonprofits – and look forward to engaging with Tacoma residents to listen, answer questions and share information about our company.

Steven V. Restivo is senior director of community affairs at Walmart.