Wal-Mart Supercenter to open soon
February 11, 2008
Ames will be welcoming a familiar business in a few weeks.
Wal-Mart Supercenter will be opening on Duff Avenue sometime in March or April, said Ryan Horn, senior manager of public affairs for Wal-Mart.
The Wal-Mart Supercenter will feature wider aisles, new checkout stands, a full-service grocery store and more products than the Ames Wal-Mart.
Horn said there were no concerns with building the business next to a Target store or in the same town as another Wal-Mart.
David Brown, building official for the city of Ames, said no serious issues have arisen during the construction of the Super Wal-Mart.
“In terms of Wal-Mart building improvements, they are about 90 percent complete. In projects like this, once the business has reached a point where the building is safe, they ask permission to stock the store,” Brown said. “That’s where they are right now.”
Brown said that, after the store is stocked, the city issues a temporary certificate of occupancy.
The Wal-Mart Supercenter will employ 250-400 people, depending on how many full-time and part-time positions are filled, Horn said.
“There has been rumors throughout the process that we would close the other Wal-Mart store. We have no plans to close that store,” Horn said.
“Anytime you look to expand, you need to be sure that you do it in a smart way. I think we are not terribly concerned, because Ames is a pretty large city.”
When a business like Super Wal-Mart opens, other business in town may worry about the effects it could have on their sales.
“I think we will be impacted some. I think there are others in town that might be impacted more,” said Monte Streit, store director of HyVee, 640 Lincoln Way.
“The only thing I can say is that we need to take care of our customers, and hopefully they will choose us over someone else.”
Other businesses have planned for the new retailer in town.
“We’ve done very well the last three years – when that [Wal-Mart Supercenter] opens I’m sure things will change some, but we’re not expecting a total blowout,” said Brian Nelson, store manager of K-Mart, 1405 Buckeye Ave. “We’ve known it’s been coming for a long time, so we have planned for it.”
Stephen Kim, associate professor of marketing, said that when new businesses come to compete, it is important for the other retailers to differentiate themselves further.
“These big national chains, they have huge purchasing power. Even though they are buying the same product, they can have better deals because of their volume. If you are a smaller business, you don’t get those discounts,” Kim said.
“When these big businesses come, it is the small ones that suffer.”
Kim said service becomes important for the smaller businesses and that developing relationships with customers is key.
Brad Shrader, university professor of management, said he predicts competition between some of the businesses on Duff to be similar to what he has seen in Campustown.
“One time there was always pizza places coming and going [in Campustown], now it’s tattoo parlors,” Shrader said. “I do think something has to give – I think its going to be more along the lines of who has the best business model rather than location.”
Shrader sees the location of the Wal-Mart Supercenter next to Target as a potentially good thing for both businesses.
“You see it as, why do several restaurants position themselves in strip malls?” Shrader said. “The logic is, I think, they are banking on being where there is other retail establishments.”
Shrader said he thinks downtown businesses and retailers at the mall should be worried.
“The smaller stores in downtown Ames that rely on foot traffic – I think [Super Wal-Mart] is going to be tough on them,” Shrader said.