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The Rural Voice, 1995-12, Page 33Gigantic stores like Wal-Mart and Zellers may totally to be unafraid of the new challenge. They see opportunities, change shopping patterns but many smaller merchants claim as well as problems, ahead. The traffic flow through the small towns is on the increase as people travel from a larger catchment area to get to Wal- Mart or Zellers. It is up to the business associations and merchants to stop that traffic, to give them a reason to walk main street, says Jim Cooper, an insurance agent from Vanastra speaking as a consumer, once -manager of a K -Mart facility and prospective business owner in Clinton. With these stores locating in more rural communities, it gives the rural and small town residents the choice between driving to London or Kitchener for an entire day to shop for items not available in their home town or driving less than half an hour, in a more rural setting to fill the need, says Cooper. "These shoppers will pass through many small towns. They will need to stop for gas and maybe something to eat. The small town retailer must promote and compete. The traffic flow is there, what they do with it is up to them." "I believe most people will still shop in their hometown for the day- to-day goods. Habits haven't changed. People will not drive to Goderich for goods they can get in Clinton. Prices should be fairly competitive and if they are not, it is the merchants' own fault. Consumers will pay a little more for products bought at home, but not 20 per cent more." As suggested by several business association members, the key for success is specializing, don't try to offer the same product line as Zellers or Wal-Mart. The price will not be competitive simply due to the buying power. There was talk that the Giant Tiger discount store in Goderich would not survive with the arrival of Wal-Mart but the store was strategically located in the same plaza and has realized a sales increase of 50 per cent, says Cooper. "They have a different product, but with comparable prices." Following a similar theory, Marilyn Robson of the Hanover Chamber of Commerce says, their merchants believe the traffic flow will eventually pass through the main street shopping area. "With these stores bringing in more rural customers, main street businesses can play up their strength of good, friendly service and on-site warranties. Find the differences and work on those." Service appears to be the strategy which will help sustain the main street business. While hearing few concerns yet from local business people, Lucknow Chamber of Commerce Vice- president Pat Livingston says her community is working to expand the service end of the business, using the fact that they know their shoppers. "We have a friendly community with a newly reconstructed main street. The new arena along with squash courts, soccer and baseball fields will draw the surrounding residents into Lucknow for shopping as well as the activities." For small town Palmerston, situated between Hanover and Listowel, with a population of only 2,100, Sandy Snyder with the Chamber of Commerce says they have set a plan in motion to "change the way we do business." A steering committee has been formed to develop an action plan, to create a special reason for people to visit Palmerston. "Being central to Owen Sound, Kitchener, London, Guelph and Toronto, we can market Palmerston as a small town where city people can work from home. Phones and the Internet can make this possible," says Snyder. The recession hit Palmerston hard, decreasing the ability of local people to keep business going. "We have to draw out-of-town customers and convince the locals to shop here (rather than go to Listowel). We have to try not to lose what we still have." The relationship with the rural population is important to small communities as they rely on the buying power of a broader consumer base to support the merchants. One rural consumer in the Palmerston district fears the arrival of big box stores may lead to the death of small town businesses if they don't "bend over backwards to help and be friendly." George De Vries, a 15 -year resident of the area, says with many rural residents being non -farmers they are willing to travel to Kitchener or Listowel to shop. DECEMBER 1995 29