While it is a cliche, the adage “If you build it, they will come” holds true when speaking of dollars into a community that features a Walmart Supercenter within its limits.
“That’s exactly what happens,” said Lon Hatamiya of the California-based Hatimaya Group. “Smaller communities actually did better in attracting revenue, jobs and other businesses than the larger cities.”
When Walmart – the new one currently being constructed along Gilmer Ave. – opens its doors in late April/early May a host of new jobs will come with it.
So will new revenue.
“Our net revenue should be around $400,000,” said Robertsdale mayor Charles H. Murphy. “And that’s from sales tax, property tax and utilities (we sell electricity). We’re looking at $60,000 just off property tax. But that’s a very conservative estimate.”
While the Robertsdale Walmart (to be built just ahead of Walmart Supercenters in Foley and Fairhope) will be larger than the 69,000 square-foot facility currently being constructed in Tallassee, the two share a similar marketing plan in hopes to catch travelers coming through the area.
Their guest will be going to the beach.
Tallassee’s guests will be visiting Monster Mountain and/or Lake Martin.
“When there is a Supercenter in your area, it tends to act as a magnet,” said Hatamiya. “Tallassee’s will attract shoppers from all over the region: Tuskegee, Eclectic, places like that. And by doing that, by bringing those shoppers in, you are keeping tax dollars at home and that goes to improve your tax revenue, schools and public safety departments.”
In Hatimaya’s study of a dozen California towns with Walmarts of varying sizes, he found that in the months following the opening of a Supercenter the number of retail permits grew by an average of 48 percent.
“This is good news for Tallassee,” said Ben Atkinson, who along with Joe Jeffcoat form Ben-Joe Properties the day machines began scratching out what is shaping to be the parking lot. “It’s a signal of growth. This shows that there are some forward visions taking place.”
Atkinson and Jeffcoat began working with Walmart to bring a store to Tallassee more than 10 years ago.
“It’s just one of those things you’ve got to wait on,” said Jeffcoat. “They do things their own way.
During the Oct. 7 (2013) meeting of the Tallassee Planning Commission, engineer Christopher Nix said the new store is planned to be open by next summer.
Add to that, towns experienced a 20 percent growth in tax revenue.
“Walmart is focused on the facts when it comes to talking about our presence in a community and evidence shows that California communities win with Walmart, particularly in regions of the state that have fewer economic opportunities,” wrote Kim Sentovich, senior vice president of the Pacific Division of Walmart in response to Hatimaya’s study.
His study also found that communities without the retail giant in their backyard, over the period of a year, suffered a 12 percent loss in tax revenue and their retail permits showed a slow, 20 percent growth.
“You’re not going to compete with them on T-shirts or socks or tennis shoes,” said Murphy. “But, if you’re manufacturing leather products like cowboy boots and saddles or purses you’ll be fine. Businesses will have to adjust and change their strategies. I’ve got a hardware store down here that sells guns. Walmart sells guns but most of theirs top out at $500. Most of the hardware store’s guns start at $500.”
The new store, a Supercenter, will create at least 100 jobs (50 or more on top of the existing Walmart jobs), according to Nix.
“The only other one like this in existence is in Camilla, Ga.,” said Nix. “There are five others being built at this time.”
The new store will not have a tire center or a drive-through pharmacy, but will have a pharmacy, a deli and a grocery side.
Camilla has just opened their 75,000 square/foot Supercenter which is going to be comparable to Tallassee’s new near-70,000 square/foot facility.
“Our (original) Walmart was built in the early 90s,” said Bennett Adams, Camilla’s City Manager. “Our situation is unique in that we are about 30 miles south of Albany, which is regional economic hub. Walmart made the decision to close our store when the economy started to go bad. Some of the local, smaller merchants were glad because they’d been competing with Walmart for so many years.”
A year after Walmart closed, the corporation came back to Camilla and built the Supercenter and with the new facility came 57 additional jobs on top of what the original store employed.
“Our Walmart has grown with the people in our community,” said Adams of the store that did around $23 million in sales in 2013.
“The restaurants are doing better and our downtown is doing better because people are coming into town and seeing what all this area has to offer. Now, granted, Walmart wants to get you in the store and sell everything you’re going to need right then and there. But, we have the benefit of having unique, local stores that can hold their own.”
Tallassee has those.
A Dash of Fashion, Posh Boutique and Tallassee True Value Hardware are all located along Gilmer Avenue and just a stone’s throw from the new Walmart.
“I think it’s going to bring us some new customers,” said A Dash of Fashion owner Jenna Wright. “People on the other side of the bridge, that may normally not come through town will have a reason too because of where Walmart is. We are definitely going to have more traffic coming through town.”
And while Walmart has a hardware section, it’s not the same as shopping at a hardware store.
“I do think we’re going to see a few more customers,” said Dale Taylor of Tallassee True Value.
“Sam Walton said that if a hardware store couldn’t survive next to a Walmart they are in trouble. We are going to be able to provide a service that Walmart may not be able to.”
According to Adams, Camilla has an old-style Feed’n’Seed store that’s 80-plus years old and is thriving.
“It’s our mayors and it’s been in his family for the past 8- years,” said Adams. “He’s expanded his hunting and fishing section and expanded some other areas and seems to be doing pretty good. And we’ve got a couple of furniture stores that are doing good.”
As with Robertsdale and with Camilla, the benefits of a Supercenter can be long reaching as businesses tend to gravitate.
“It’s safe to say you build it and they will come,” said Hatamiya with a laugh. “That’s a safe assumption more so for the smaller communities than it is for the larger ones. I can’t imagine that not holding true for Tallassee.”