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