How Should Retailers Like Walmart Handle Local Communities?

In the ever-evolving landscape of retail, Walmart continually pushes boundaries to enhance customer experiences. Despite recent corporate adjustments, the retail giant remains steadfast in its commitment to technological advancement. Recently, the retailer has been pioneering drone delivery services in Dallas-Fort Worth and integrating AI-powered shopping assistants. As the company grows more lucrative and expands its footprint, local communities in Bentonville experience the transformation like a boomtown.

Sam Walton opened the first Walmart store in Rogers, Arkansas, in 1962, and almost a decade later in 1971, the first distribution center and home office opened in nearby Bentonville. The once quiet, rural Bentonville has since transformed into a bustling hub of growth and innovation, challenging its small-town roots with the dynamics of a booming city.

The catalyst for Bentonville’s metamorphosis can be traced back to Walmart’s relentless expansion. As the retail giant has competed with e-commerce behemoths like Amazon, it has transformed into a tech-driven powerhouse. This evolution has not only reshaped Walmart’s business model but also Bentonville’s landscape and economy.

The physical transformation is evident, with Bentonville now boasting more cranes per capita than any other U.S. city, according to Cushman & Wakefield/Sage Partners — a clear sign of ongoing construction. Walmart’s new headquarters, which will spread across 350 acres of land, epitomizes this growth, with plans for offices, a hotel, a food hall, and extensive recreational trails. Parts of the campus are already open, including a daycare and fitness center, with other parts opening next year in phases.

Over the past decade, Bentonville has seen its population surge from 36,000 to 58,000 residents, with projections hinting at exponential growth reaching 200,000 by 2050. This influx has been fueled by not just Walmart but also other major corporations like J.B. Hunt and Tyson Foods, alongside countless Walmart vendors setting up shop in the area.

And it’s not just corporate infrastructure that’s booming. Bentonville’s cultural scene has blossomed, resembling “startup hubs like Austin, Texas, or major cities like New York,” according to CNBC, with artisanal coffee shops, craft cocktail bars, and chef-driven restaurants.

The Walton family, descendants of Walmart’s founder Sam Walton, has played a pivotal role in this transformation. They’ve introduced mountain biking trails, upscale dining establishments, and even an American art museum named Crystal Bridges.

However, Bentonville’s rapid ascent hasn’t come without challenges. The cost of living has soared, making housing less affordable for longtime residents and newcomers alike. What were once modest neighborhoods now host million-dollar homes, a stark contrast to Bentonville’s humble origins. Despite the challenges, Bentonville continues to attract diverse talent from across the country.

Local officials and organizations are grappling with these changes, aiming to mitigate issues such as traffic congestion and housing affordability. Efforts are underway to develop mixed-price housing projects and preserve the town’s unique character amid the urbanization.

Late last year, Walmart’s renovation of its museum in Bentonville sparked controversy over the demolition of historic buildings housing the museum. While Walmart asserted that the demolition was necessary for safety and compliance with modern standards, community members, including local historian Randy McCrory, expressed surprise and concern over the lack of transparency.

McCrory emphasized the importance of preserving historic buildings and hopes the community will invest in their preservation. Walmart spokesperson Scott Pope underscored the company’s commitment to preserving the area’s historical integrity while ensuring safety. Despite the demolition, Walmart promised the renovated museum would maintain the community’s familiar aesthetic while offering expanded amenities.

Last month, Walmart announced significant layoffs, impacting several hundred corporate employees at its campus offices. The retailer also revealed plans to consolidate its workforce by requiring most remote workers to relocate to primary offices.

As Walmart prepares for employee relocations, the housing market in Northwest Arkansas is poised for substantial changes. Mike Duley, chairman of Keller Williams Market Pro Realty, anticipates an increased use of short-term rental properties in Northwest Arkansas as incoming employees assess the area before committing to long-term housing. He noted that families might stagger their moves, with one partner relocating first to evaluate local schools and amenities such as biking trails and proximity to the university.

The housing market in Northwest Arkansas, which traditionally follows an annual bell curve, has seen a significant rise in home prices. The average home price has nearly doubled from $225,000 in 2016 to over $400,000 today. Duley attributes this increase to the growing population and varying price ranges sought by new buyers.

Despite the rapid changes and challenges, Bentonville stands as a testament to growth and innovation, blending its small-town charm with the dynamic opportunities of a thriving city. With continued efforts to address housing and infrastructure needs, the community is set to remain a vibrant and welcoming home for both longtime residents and new arrivals.