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Studies have shown Wal-Mart brings more retail buyers to a community, but it also threatens businesses that sell the same products it offers.
Commonly acknowledged as the authority on Wal-Mart and its impact on communities, Iowa State economist Kenneth Stone predicted that Wal-Mart would make Winona more of a regional shopping center and attract more retail traffic to town.
Less than a month after the Wal-Mart Supercenter opened on Frontenac Drive, exit interviews with Wal-Mart shoppers indicate predictions are becoming reality. One nearby business, that doesn't compete, has seen a slight up-tick in business, and another that does compete with Wal-Mart has seen a slight decline in traffic.
Tommy Thompson, co-owner of County Market, said he can't yet measure an impact on his business from having the Wal-Mart competing for grocery business.
As for the hope, expressed by some in the community, that new restaurants and other retail businesses would locate in the area of Wal-Mart and Menard's, no new announcements have been made.
During the past year, Port Authority executive secretary Judy Bodway, has fielded questions from businesses looking at the Riverbend Retail Park area, she said. In February, Mayor Jerry Miller told an economic summit audience that "seven or eight companies are looking at lots in the Wal-Mart vicinity."
The Walgreens Drug Store is a new business near Wal-Mart, and store manager Steve Martens said his traffic is down a bit since Wal-Mart opened Oct. 27.
"Our customers are not really the same customers," Martens said.
Across the street, at the intersection of Frontenac Drive and Mankato Avenue, Mugby Junction coffee shop saw an increase in customers when the Wal-Mart opened, according to owner Carew Halleck.
How much, it is hard to measure, he said. Mugby Junction has been increasing sales since it opened in 2003 and, in August, served its 100,000th customer. Halleck is currently preparing to open two more coffee shops in Rochester, Minn. based on the same business model of his first store in Winona.
While most people would agree there is more traffic flowing along Mankato Avenue, the city hasn't yet conducted traffic counts, said city engineer Brian DeFrang.
The feeling of congestion is deceptive because there is still construction on the turn lane to the new road by Target, he said.
"This and other things we're currently designing will hopefully alleviate the pressure of traffic on Mankato," he said.
A survey of license plates in the Wal-Mart parking lot will reveal that, on any given day, 10 to 20 percent of the cars are from Wisconsin. When customers are asked, many say they came to Winona because of the store.
One afternoon last week, Steve Taverna from Nelson, Wis. left the store, purchases in hand. He was making his second visit to the new Supercenter, he said. Without it being in Winona, he would be shopping at the Eau Claire, Wis. store, he said.
Marie Scott of Pepin is another Wisconsinite who came to Winona to shop when she would normally have gone to Wal-Mart in Red Wing, Minn. or Eau Claire, Wis. she said.
"We haven't done any zip code tracking yet," said Wal-Mart manager Terrill Stormont. "But, the numbers are comparable to openings we had in La Crosse."
Craig and Vickie Hanson of Rushford were making their second visit to the store, last week. They think it has a better variety of products than the La Crosse area Wal-Marts where they used to shop.
Jane Fossler, of Nodine, works in Winona and has shopped at the Winona Wal-Mart twice. But she plans to give most of her business to the store in Onalaska because she likes the layout better.
Another Pepin, Wis. resident who has changed her shopping allegiance to Winona is Sue Blomsterom, a former Wal-Mart department manager. She cast a more critical eye over the store and its operations than the average customer and she gave it passing grades.
"It's well set up and neat. I'm impressed. The management is doing a good job. I see a lot of smiles — the 10-foot rule, they do it well," she said.
The 10-foot rule says when employees are within 10 feet of a customer, they are supposed to smile and say hello.
Contact reporter David Krotz at dkrotz@winonadailynews.com or call (507) 453-3524.
