From Deseret News archives:

Friend or foe? Wal-Mart alters Utah landscape

Convenience and low prices often win over staunchest foes

Published: Sunday, March 27, 2005 12:28 a.m. MST
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"Once our stores open and people realize the positive benefits that we make, we feel that the opposition tends to dissipate," he said.

But for Mortenson, Wal-Mart left little more than heartache. After accumulating nearly 1,500 craft-distribution accounts over 27 years, Mortenson had about 50 clients when she closed the store last April.

"I can't tell you how many people, how many accounts we lost because of stores like Wal-Mart," she said. "People will just go into the chain stores —— which I guess is just the wave of the future."

That's a terrifying notion for Kinde Nebeker, who believes local businesses are the lifeblood of a community and distinguish one city from another.

"It's a quality-of-life issue, and the thought of losing that is very frightening to a lot of people," she said. "If there are no local places we can go to, it paints a very frightening, stark, bleak picture in terms of the heart."

It's a picture that Nebeker and hundreds of other business owners in Salt Lake City are fighting as part of the Vest Pocket Business Coalition, a group that teaches local businesses how to survive in a big-box economy.

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Anne Holman, a manager at the King's English bookstore in Salt Lake, said the shop has thrived for 27 years despite the encroachment of big retailers.

The key: a loyal customer base and quality.

"You get what you pay for," Holman said. "I think the only reason Wal-Mart is cheaper is because they're cheaper items. Everyone wants cheaper, cheaper, cheaper. It's just a whole downward spiral of the economy."

In Tooele, where Wal-Mart built its first Utah store in 1990, economic development director Brian Berndt said the store has shifted the dynamic of the local economy but has not driven out businesses.

Wal-Mart representatives met with local business owners in Tooele before building a store to let them know what goods Wal-Mart did not provide. For example, Wal-Mart does not sell Levi's, so local stores were able to adjust inventory to maintain a niche in the local economy.

"I think it changed the dynamic in how people do business to a degree, but I don't think it's a retail killer like it has been called," Berndt said.

Good for city coffers

While Wal-Mart may be edging out some local shops, it is also filling city coffers. Berger said the retailer pumped more than $12.5 million in state and local sales tax into Utah last year. The company employs 14,400 people and donated $2.4 million to local causes last year.

Wal-Mart also spent about $676 million for merchandise and services with 750 suppliers in Utah last year.

"Many communities have found that we've been a positive partner in the American town," Berger said.

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