Final answer:
The introduction of a Walmart Supercenter into a small trade area is potentially negative for the local quality of life, as it can outcompete and harm local businesses, negatively impact the local economy by sending profits out of the community, and potentially lower wages and reduce benefits for its employees.
Step-by-step explanation:
The entry of a Walmart Supercenter into a small trade area with a population of fewer than 200,000 people can be viewed as having negative consequences for the community's quality of life.
Walmart's business model can harm local economies by outcompeting locally owned businesses, leading to a decrease in local economic activity and diversity. The money spent in Walmart tends to leave the local economy rather than circulating within it, as it does with small businesses. Furthermore, the Wal-Martization of the economy, characterized by lower wages and fewer benefits, leaves working families with less income to spend locally, potentially reducing the overall economic activity.
Walmart's ability to use economies of scale to offer lower prices often comes at a cost to vendor businesses through squeezing, and the lower prices may not compensate for the broader negative economic impacts. The concept of threshold population, as explained by Christaller, indicates that smaller retailers require far fewer customers to stay sustainable, while Walmart's larger threshold population allows them to dominate market spaces, pushing out these smaller entities. Additionally, the entry of a Walmart could potentially dissuade other types of businesses and services, like Internet providers, making the area less attractive to both residents and businesses.