Center for Community and Economic Development

CCED

BIG BOX Retailers

One of the most common issues facing many smaller communities is whether to embrace or oppose big box retail development.

Typically, the battle lines are quickly drawn. The debate is often emotional and unfortunately, opinion rather than fact is othen the basic for much of the discussion.

In an attempt to gain a better understanding of of the big box phenomenon I examined the annual reports of several publically held big box retailers.

Did i just suggest that you read corporate annual financial statements? Yes, I did and don't worry, I am presuming that you do not have an MBA in finance and that most of you have never read a corportate annual report. If you can read and know how to do simple arithmetic (not math) you can do this. I promise.

Although these documents are designed to provide information to current and potential investors, they also provide information that can help us understand how these companies will impact our local communities..

I use Wal-Mart in these examples because it is the biggest box on the block and generates the most questions. The general methods used here can be used to analyze any publically held company.

Tools and resources to help you better understand Big Boxes.

wmt 2006 annual report cover

Sources of Information: Corporate annual reports and other financial filings are available free online through EDGAR, the online filing system of the U.S. Securities and Exchange Commission. Most Corporate websites also provide financial reports. Simply click on the Investor, or Investor Relations tab. For these examples I used the Wal-Mart corporate website, the 2006 Wal-Mart Annual Report . and the 2006 Wal-Mart 10-K Report