Redeem now The worst Walmarts are located in low-income, minority communities.
That's according to a study published in May by Contexts, a quarterly publication of the American Sociological Association.
A Walmart store's location is closely related to how good or bad the store's customer service is, the study found.
The study, which was recently highlighted by The Atlantic's CityLab, evaluated customer service by analyzing the Yelp reviews of 2,840 Walmart locations across the US.
This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in.Stores in areas that have lower average incomes have significantly worse customer reviews than locations in higher-income ZIP codes. Additionally, locations in areas with higher proportions of black or Latino residents have worse reviews than those in areas with more white residents.
The study's author, Adam Reich, an assistant professor of sociology at Columbia University, analyzed approximately 35,000 reviews of Walmart locations and found that there was a consistent correlation between a neighborhood's majority race and socioeconomic status, and a location's Yelp reviews. Reich blames the disparity on Walmart's decision to understaff stores in certain areas.
In the early 2000s, Walmart implemented cost-cutting policies that reduced the number of necessary employees per store and resulted in a drop in stores' quality. This study provides evidence that a decrease in store quality was not consistent across the board, but instead affected some customers more than others.
"Walmart is the largest retailer and largest employer in the world; moreover, it has consciously branded itself as a champion of and boon for disadvantaged communities," Reich wrote. "Its underinvestment in these communities is thus particularly notable."
A Walmart spokesperson told Business Insider that the company found the analysis to be "flawed and without merit."
"Our customer traffic and overall customer satisfaction scores have been improving and we're focused on continuing to do better," Walmart spokesperson Lorenzo Lopez said in a statement to Business Insider. "Our associates play a critical role in the company's success and that's why we've invested $2.7 billion on associate education, training and wages. We're also proud to provide communities across the country, regardless of social or economic background, access to affordable goods and career opportunities to help them better provide for their families."
The study may in fact have a few holes. The reliance on Yelp means that researchers can't examine reviewers' biases and outside influences. For example, a store's location in a lower-income or predominantly black or Latino neighborhood may affect how its quality is perceived by some reviewers, regardless of the store's customer service.
However, this isn't the first time Walmart's apparent understaffing has been called into question.
Reports of Walmart saving money by reducing staff members have also gotten the retailer into hot water with police. Earlier in August, Bloomberg reported that more than 200 violent crimes had been committed this year at Walmart locations across the US.
Bloomberg reported that the rise in crime is a result of corporate policies. The cost-cutting policies resulted in a drop in quality, while the loss of greeters and the rise of self-checkout scanners made shoplifting and other illegal activities easier to engage in without employees noticing.
"In the coming weeks and months, we will continue our increased outreach to law enforcement across the country, as part of our ongoing commitment to meet our customer's and associate's expectations of a safe and enjoyable shopping experience," a Walmart representative said in an email to Business Insider earlier in August.
While Walmart's cost-cutting policies have had negative — and, at times, dangerous — outcomes for customers, they have also driven profits: Bloomberg found that sales per employee in the US grew 23% in the last decade, to $236,804.
Reich writes that the retailer can turn a profit despite providing poor customer service because Walmart's super-low prices have helped put local competition out of business. As a result, Walmart becomes some customers' only option — no matter how poor the shopping experience is.
However, Reich argues that the retailer may suffer in the long term if it doesn't make some major changes. A poor shopping experience could be increasingly damaging for the brand as online shopping grows and competitors increasingly invest in providing quality in-store experiences.
"For Walmart and other retailers, providing a pleasant customer service experience seems likely to be increasingly important to corporate profitability," Reich wrote. "For its own sake, then, Walmart should hire more employees, particularly at stores in low-income communities of color, and give all Walmart employees more reasons to smile through better wages and working conditions."
Sign up for notifications from Insider! Stay up to date with what you want to know. Subscribe to push notificationsWatch: 9 sneaky ways Walmart makes you spend more money
ncG1vNJzZmivp6x7o8HSoqWeq6Oeu7S1w56pZ5ufony4u9Gsq2avkaG6or7TZqqtp6KawG6t0Z5koqZdpbywvoynnKKfmJe8s7TOqJusZWJlfnd5lw%3D%3D