Since the 1980s, Wal-Mart stores have appeared in almost every community in America.Wal-Mart buys their goods in large quantities and therefore at cheaper prices. Walmart also locates its stores where land prices are low, usually outside of the community business district. Many customers shop at Wal-Mart because of low prices and free parking. Local retailers, like the neighborhood drug store, often go out of business because they lose customers. This story demonstrates that

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Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale. Wal-Mart's strategy of buying goods in large quantities for cheaper prices and locating stores where land is less expensive are examples of economies of scale in retail sales.

Since the 1980s, Wal-Mart Stores Have Appeared in Almost Every