Local businesses prepare to battle Walmart for customers - KOTA Territory News

Local businesses prepare to battle Walmart for customers

It has everything on your shopping list, under one roof, with some of the most competitive prices in town. But while Rapid City shoppers are happy about the new Walmart, small business owners feel very differently.
 
No matter the city, Darlene McManus always seeks out her favorite store, and she's rarely disappointed
 
"I always want to see if there's a Walmart. They're not hard to find, all you gotta do is look at the sky and you'll see a sign," said McManus.
 
And while the savings may be good enough for McManus to write home about, local businesses aren't impressed.
 
"A city the size of Rapid, one was more than enough. Clothing, furniture, food,  towels, they can undercut everyone on that," said Bobby Lee Beckmen, owner of George's Vacuum Sales and Service.
 
Studies have shown Walmart to capture $8 million dollars from local businesses in their host towns in their first year of operation.
 
"it is a challenge to meet our budget, they have an unlimited budget," said Jo Prang, owner of Medicap pharmacy.
 
But, studies also indicate customers are willing to pay more for quality customer service.
 
"We're able to know our customers by name. Its hard to know that at a large pharmacy. I'm not saying they can't or there's not enough scripts for both of us, but we have a different style," said Prang.
 
"They can compete by staying open the proper hours, offering prices that make sense. Doesn't have to be lowest, but service has to be there," said Bill Van Hoosan, a Walmart shopper.
 
And despite the statistics, there is a bright side to Walmart's arrival.
 
"Walmart benefits the vacuum business because the products they sell, the cheaper vacuums break down and people bring them here to get them worked on," said Beckmen.
 
But those after the best deals say, it won't be easy to steal their business from Walmart.
 
"You can't close at 6 at night when there's a major shopping center, or Walmart that's open 24 hours a day. You want to be a small business you want to be successful, you have to keep up with the trends," said Van Hoosan. 

Studies of other Walmart stores indicate that roughly 16% of money spent in the large chain remain in local community, compared to 32 % for local businesses.