And though Wal-Mart wasn't the target of their hourlong brainstorming session, the retail giant clearly wasn't far from their minds.
Last Tuesday, Wal-Mart essentially won approval for a 150,000-square-foot Supercenter near Hamilton when voters elected to repeal Hamilton's so-called “big box” ordinance, which capped the size of new retail stores at 60,000 square feet.
The evening's topic was chosen before the election by the Bitterroot Valley Chamber of Commerce's business networking group, which hosts a monthly meeting designed to bring local merchants together to address common issues.
Committee co-chair Julie Foster, who heads the Ravalli County Economic Development Authority, decided on the topic shortly after returning from a national conference hosted by the Leadership Institute. There, she learned a number of strategies that have been tried with great success in other communities facing the arrival of big box stores.
“They're coming,” Foster said. “If they're not coming today they're coming tomorrow or the next day.”
big box stores pose a formidable threat but they do have their weaknesses, she added.
“The big box stores definitely have chinks in their armor where you can get in there,” she said.
For one thing, they aren't as involved in the community as local business owners, said Russ Lawrence, owner of Chapter One Book Store and a vocal opponent of Wal-Mart's efforts to open a location near Hamilton. He brought two copies of the book “Big-Box Swindle” to the working group.
Local business owners know their customers in a way big-box stores simply can't. They know who recently got married, who recently had surgery, who can never remember what his wife wants on her birthday.
Also, big-box stores by definition try to offer as much of everything as possible, said Bill Bean of Fishaus Fly Fishing and past chamber president.
“They're generalists, they're not specialists,” Bean said.
Local merchants can compete by knowing their niche. They can offer specialized knowledge and services, and be willing to special order whatever else their customers need.
Of course, big box stores have some competitive advantages as well, not the least of which is their buying power, several meeting participants noted.
“They're great marketers,” said Dale Hanson of Western States Insurance in Hamilton. “Their prices aren't necessarily the best, but they market them that way.”
Their prices might not be lowest, but they are able to engage in predatory practices by shifting costs among stores, Lawrence said.
“They can lower their prices here until enough (local merchants) are wiped out,” he said. “They can absorb those losses.”
Also, they tend to have longer hours, others noted. Several members of the group even shared good-humored stories about downtown business hours - from their dismay at finding “back in five minutes” signs taped to a front door to their frustration at waiting outside a business 15 minutes after it was supposed to open.
Many local businesses don't recognize the threat posed by big box stores, and some of those that do have a fatalistic attitude. That needs to change, said Cassie Romano of Lakeland Feed and Supply.
Local businesses need to start sharing information and networking with each other, Hanson suggested.
“I like to do business with people who do business with me,” he said.
Also, they could take advantage of educational resources and training opportunities, said Bitterroot Job Service's Vickie Steele.
And learn from their neighbors, said Michelle Buker of Lakeland Feed and Supply. The Bitterroot Chamber might consider talking with the Missoula Downtown Association about the challenges Missoula's business community faced 25 years ago with the building of Southgate Mall. How did its small businesses survive?
Local merchants could counter the marketing power of big box stores by organizing their own collective marketing strategies, Romano said.
Also, there are buying groups local businesses could tap into to increase their buying power.
Many agreed that, above all, Hamilton's small stores should focus on customer service. When tourists come in and ask what's going on, the answer shouldn't be “I don't know,” said Diane Wolfe, executive director of the Bitterroot Chamber.
Merchants should stay informed about local events and be ready to direct customers to the chamber for more information, she said.
It's clear there's a lot Hamilton's business community can do, Foster said toward the end of the meeting. However, the question remains - what to do next?
The community might see its strategy condense more quickly if local businesses met to discuss the subject more often, Hanson said. A meeting devoted entirely to the topic of big box stores needs to held once a week, not once a month, he said.
It's important to start making some strategic changes as soon as possible. After all, the local business community doesn't want to be stuck on step three the day the big box store opens its doors, Wolfe said.
Reporter Tyler Christensen can be reached at 523-5215 or at tyler.christensen@lee.net.
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