GRIZ BEAR COMMENTS Walmart's coming: Good news or bad?

Wednesday, March 2, 2011

— Is it good news or bad that Walmart is coming to town? I suppose that depends on whether one still holds out hope that a small town can revitalize its Main Street Districts with businesses competing with giant retailers like Walmart or if one sees that having a retailer like Walmart come is the only way to keep area residents shopping at home and the most likely way to bring customers back into other area businesses as well.

I have lived and worked in a number of small towns in which Main Street businesses have slowly succumbed to the allurement of savings offered by giant retailers in nearby larger towns. And it wasn’t only when those big stores were close by. When I lived in northwest Kansas, the nearest Walmart was 70 miles away. That, however, didn’t stop people from shopping 70 miles away or 90 miles away (in the other direction) because of price and selection. As a result, many local businesses - especially clothing stores and smaller department stores - closed. They just couldn’t compete. Those businesses which survived were those serving a special niche in the rural farming community.

During my stays in small towns, I heard many plans to revitalize Main Streets with new businesses to keep area residents shopping at home, but none really succeeded. Even if the new businesses were not in direct competition with the giant retailers, they often failed because people still traveled to shop at Walmart or another giant retailer and did the rest of their shopping while they were out of town as well.

I realize that a Walmart store in Gentry and Gravette could hurt a few existing businesses, but I’m of the opinion that those businesses are alreadyhurt by the fact that the Walmart super centers are only a few minutes’ drive away.

Until we know exactly what the new Walmart express stores will carry in the smaller, 15,000 square-feet stores, the effects upon other local businesses is unknown. It could possibly hurt those local businesses marketing the same or similar products, but there is the possibility the new stores will keep shoppers who would have otherwise driven to Siloam Springs, Bentonville or Rogers at home, meaning a boost for other local businesses as well.

Most certainly, those businesses not in direct competition with the giant retailer stand to benefit from additional customer traffic in the area. Even though the new Walmart stores are not on Main Streets, they are close enough to Main Street districts to increase traffic there as well. Restaurants and service stations stand to benefit, but other businesses too will likely see more customers as a result of more people shopping in Gentry and Gravette.

The coming of the mini-Walmarts will give local city governments in Gentry and Gravette a much-needed boost in sales tax revenue; and with the recent shortfall in tax dollars and the resulting tight budgets, keeping sales-tax dollars at home rather than putting them in the coffers of larger neighboring cities will help local city governments provide improvements right here at home.And who would complain if our cities were better able to afford improvements to streets and alleys and could offer and provide improved services and opportunities for local residents?

And so, whether the coming of new scaled-down versions of Walmart is good news or bad for other local businesses remains to be seen as more details become available. But even for those who are skeptical about the benefits of the new stores, the news could be worse. The stores could be going into a neighboring town and taking even more local business away from home.

Randy Moll is the managing editor of the Westside Eagle Observer. He may be reached by e-mail at rmoll@nwaonline .com.

Opinion, Pages 6 on 03/02/2011