The Skinny on Big Box Retailing: Wal-Mart, Warehouse Clubs, and Obesity

Abstract:     
We estimate the impacts of county-level Walmart Discount Store, Walmart Supercenter, and warehouse club presence on individual body weight, obesity status, food consumption, and exercise. Contrary to the conventional wisdom that cheap food causes weight gain, we find no evidence that any of these stores increase weight or lead to less healthy eating habits. Warehouse club entry is actually associated with reductions in weight, obesity, junk food intake, and eating at restaurants as well as increases in fruit and vegetable consumption. These results suggest that bulk buying is a more important determinant of body weight than food prices, at least in this context. Buying groceries in bulk may lead to healthier eating by allowing individuals to counteract self-control problems by constraining future choices.

Keywords: Walmart, Wal-Mart, Costco, Sam’s Club, BJ’s Wholesale Club, warehouse clubs, obesity, body weight, body mass index

JEL Classifications: I10, D0, L81, R10

Working Paper Series