River Oaks, CA. Wal-Mart Hurts Local Business

Study: Wal-Mart hurts businesses [Brentwood Press (Calif.)]

Nearby supermarket and retail stores, some of which are already struggling, might feel the pinch if Wal-Mart comes to town, according to a recently released environmental impact report (EIR).

Wal-Mart’s plans for a 230,000-square-foot supercenter with groceries in the planned River Oaks Crossing shopping center on Main Street between Bridgehead and Big Break roads might negatively impact CentroMart and Raley’s, according to the EIR.

“The proposed Project, either alone or in conjunction with the proposed Safeway and other projects including the possible Wal-Mart expansion in Antioch, would result in increased supermarket competition, especially in the short term,” the EIR states. “This period of increased competition could lead to the closure of Raley’s, the anchor at Cypress Square, which currently has sales reported below industry benchmarks.

“The main occupant at risk in Oakley Shopping Center is the Centro Mart, because the other tenants are small independent local serving businesses. This store is underperforming industry benchmarks and is somewhat dated and rundown in appearance.

“Additionally, the Rite Aid store, as the only significant general merchandise store operating in Oakley, may also see competitive pressure from the supercenter, but as a smaller store will offer a convenience level not attainable by the supercenter; and should survive, especially as Oakley’s population increases.”

The report echoes the concern of some local merchants.

“I don’t personally think it is going to affect my business that much because I am more specialized,” said Gene Bucholz, owner of Hook, Line and Sinker and a director of the Oakley Chamber of Commerce.

“But there are other smaller businesses that I believe will cease to exist. And as a part of the Chamber of Commerce, I have to wonder what will happen to those businesses. I leave it in the hands of the City Council to decide.”

Brian Panos, owner of Melody TV on Main Street across from the Cline Vineyards property that is slated to become River Oaks shopping center, is concerned that the arrival of a Wal-Mart might be a double-edged sword.

“I have to say I am sort of two minds about it,” said Panos, whose business includes service and repairs as well as sales. “For Oakley, it’s probably a good thing to bring in the big stores, but what is going to happen to Main Street? That will hurt a lot of people here. For me, it will absolutely kill my sales, but that’s not the only part of my business, so I think I’ll be OK. It’s a wait-and-see kind of thing.”

Panos’ wife Jackie, who owns The Blind Stitch embroidery shop next door, said the arrival of Wal-Mart will be good for her business, at least from one perspective.
“For strictly landmark purposes, if nothing else, I’m looking forward to Wal-Mart coming in,” she said. “When people call now and ask where I’m located, I have to give them this long explanation. It would nice to tell people, ‘You know where the Wal-Mart is? We’re right across the street.’”

But for Extreme Outdoors, a sporting goods store located next to The Blind Stitch, a Wal-Mart across the street will not be a good thing.

“(It) will definitely hurt our business. It might even put us under,” said Terry Byrd, a spokesperson for Extreme Outdoors. “They sell the same things we do, and they will do it at a lower price. We definitely do not think Wal-Mart is going to help us or any other businesses here in town.”

Julie Leschine is a longtime Raley’s patron and she said the arrival of Wal-Mart won’t change her shopping habits.

“I love Raley’s. I love the service and the products, and I doubt very much I will shop at Wal-Mart,” said Leschine. “I don’t even think we need a big box here. We have all those stores on Lone Tree over there for that kind of thing. Oakley can do better, in my opinion.”

Mayor Kevin Romick pointed out that the big-box stores could bring in millions of dollars in much-needed sales tax revenue to the city each year. He doesn’t believe that the businesses on Main Street will go out of business with the arrival of Wal-Mart or any other mega-retailer.

“Of course, everyone will be impacted; I’m not saying they won’t be,” said Romick. “But I’m not convinced that they will all shut down their doors and walk away because of Wal-Mart or any other big box.

“Part of the idea with bringing in the stores and centers like Wal-Mart is to drive up the cost of the real estate and eventually allow us to take some of that land, bond against it and put some of those dollars into the redevelopment agency, which can help with things like the downtown revitalization.

“There is a whole plan for Main Street, which the city is going to present in November, so people will have an opportunity to see what’s planned.”
Main Street’s current 60-percent vacancy rate, according to Romick, has nothing to do with Wal-Mart. Regardless, some business owners doubt that help from the city will arrive in time.

“If they have a plan, I’d sure like to see it,” said Lyle Schlosser, owner of Oakley Stove and Spa on Main Street. “We’ve been asking for things like a parking lot to help attract business for a long time. We can’t hold on here forever.”

Schlosser said he’s already seen a significant drop in his stove pellet sales since the arrival of Lowes and Home Depot in Antioch, and fears a big box here in town might eventually put him out of business.

“I’m very concerned about Wal-Mart or any other big box coming to Oakley, because every time one comes in, it cuts away a little bit more from the smaller businesses,” he said.

“I don’t think Oakley should have any big boxes. I think Oakley should have more little stores and keep the small-town flavor. If I want to shop at a big box I can go to Pleasanton or Concord. But what you can’t find are the little shops. Until the city understands that and addresses the issue, I don’t know what will happen. It is a bit of a Catch-22.”

“The city is always willing and eager to help businesses of all sizes address their problems and concerns,” said Romick. “We encourage an open dialogue.”