The Impact of Central-Place Theory on Wal-Mart

Abstract

This study applies central-place theory to the Wal-Martization process. Central-place theory posits that there are laws determining the number, size, and distribution of cities. One of the theory's major premises is its emphasis on the size and spacing of towns that specialize in selling goods and services. The Wal-Mart blueprint has adopted the central-place model in that it follows an ordered region with snowflake-like proportion. For example, the geographic expansion of Wal-Mart stores has been one of diffusing up the urban or metropolitan hierarchy over the years. Overall, the authors of this study conclude that the effectiveness of such spatial/organizational communication has contributed to Wal-Mart's successful expansion worldwide.

KEYWORDS:

• Central-place theory
• space
• location
• retailing
• hierarchy
• Wal-Mart