Wal-Mart's first year in D.C., by the numbers

Mar 18, 2015, 12:28pm EDT UPDATED: Mar 18, 2015, 12:56pm EDT

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Courtesy of CBRE Group Inc.

Wal-Mart's two open D.C. stores are having a positive impact on D.C.'s economy, according to a new report.

Michael Neibauer

Staff Reporter-Washington Business Journal

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Wal-Mart's entry into the D.C. market was celebrated by its fans and condemned by its critics. A new report on Wal-Mart's impact on the District's economy will likely get the same reception.

HR&A Advisors Inc. was retained by Wal-Mart (NYSE: WMT) to review the retail giant's economic impact after one year in operation in D.C. The findings are entirely positive in the area of jobs, tax revenue and consumer savings.

"It's my understanding that Wal-Mart commissions these studies in most if not all of the markets that it enters," said Candace Damon, HR&A vice chairman. "There was genuine curiosity within Wal-Mart as to whether the performance in an urban area and the benefits to an urban area would be greater and/or different."

Wal-Mart opened its first two D.C. stores, one on H Street NW and another on Georgia Avenue, in December 2013. A third, in Fort Totten, will open later this year. Two additional stores are planned, one at Skyland Shopping Center and the other at Capitol Gateway, both in Ward 7.

"The reaction to our stores has been overwhelmingly positive, and we're pleased with the feedback we've received from our customers and the community," saidAmanda Henneberg, Wal-Mart spokeswoman. "We have thousands of customers shopping our stores in D.C. every day, and it's clear that D.C. residents and customers in surrounding areas are responding to our convenient and affordable merchandise and fresh food."

Let's get to the results. The numbers come from HR&A, which, according to Damon, had unfettered access to Wal-Mart data.

• Wal-Mart generated more than $6 million in taxes in 2014 for the District, though the study does not break down sales versus income versus property tax revenue, and Wal-Mart would not release that information, citing its proprietary nature.
• Construction of the H Street, Georgia Avenue and Fort Totten stores supported 630 direct and multiplier jobs.
• The two open stores employ more than 700 people, of which 65 percent are D.C. residents. According to the report, "A higher percentage of Walmart employees lives in the same ward as the store than is typical for all employment in the two wards with open stores."
• Wal-Mart was responsible for half of the retail job growth in D.C. in 2013.
• Wal-Mart is "directly attributable" for more than 26,000 square feet of ancillary development and 300 new residential units.
• In a comparison of a basket of "off-brand items," only Aldi came in with lower prices than Wal-Mart — $54 for Aldi and $75 for Wal-Mart. Target was third, followed by Shoppers Food Warehouse, Giant, Safeway and Harris Teeter.
• The annual cost of food for a D.C. household is $7,300. Wal-Mart off-brand items sell for 18 percent on average cheaper than most other chains, according to HR&A, so Wal-Mart can save a family of four about $1,300 a year.