What impact might Wal-Mart have on Litchfield?

MONTEVIDEO -- Those wondering about what Wal-Mart might mean for Litchfield could look at Montevideo's experience.

The towns are of similar size with Litchfield's population at about 6,665 and Montevideo's at 5,600.

A Wal-Mart discount store opened 13 years ago on state Highway 7 in Montevideo. The city has changed since then, although Wal-Mart's role in that is hard to measure.

The Montevideo Wal-Mart employs 201 people, said Ryan Horn, a company spokesperson. He did not know how many of those employees are full time, but said in most of its stores the majority of employees are full-time.

Since Wal-Mart's opening, some downtown stores have closed, but new businesses were built near Wal-Mart. Wal-Mart is looking to build a Supercenter in Montevideo to replace the discount store.

Opinions about having Wal-Mart in Montevideo vary, from those who think the retailer brings more people to town to those who think it hurts other businesses, said Lori Evenstad, director of the Montevideo Area Chamber of Commerce.

"Obviously it's a very hot topic," she said.

The owners of Ace Hardware in downtown Montevideo were concerned when they heard Wal-Mart was coming to town, but it hasn't affected them negatively, co-owner Debbie Dickhudt said.

After Wal-Mart opened, they removed their toy and sporting goods line and instead began carrying more plumbing and paint products, she said. They also offer different services than Wal-Mart, such as window repair.

"Actually, it didn't hurt us at all," said Dickhudt, who has owned the store with her husband, Bill, for 16 years. "We were concerned. We just watched our different areas and we just adjusted."

But the downtown has changed, she said. The clothing and shoe stores and the Ben Franklin closed. Some clothing stores, however, closed before Wal-Mart opened.

"Our Main Street is a lot emptier than it was before Wal-Mart came to town," Dickhudt said.

The Pamida store also closed after Wal-Mart opened, said Jim Dahlvang, owner of DJ's Sporting Goods Center, a hunting and fishing gear store in Montevideo.

"That was a big hurt for the community," Dahlvang said.

Wal-Mart's opening hurt his store at first, he said, but he now tries to sell different products than Wal-Mart and enhance other services.

"We know we can't match them in price, but we can beat them in service and product knowledge," said Dahlvang, who opened his store in 1974. "We know we can't butt heads on the same item."

He said he doesn't refer customers to Wal-Mart if they're looking for a product he doesn't carry.

But at Radio Shack downtown, owner Barry Corder said he'll call Wal-Mart if a customer is looking for a certain item.

"We have a good working relationship with Wal-Mart," he said.

For the most part, Radio Shack sells different products than Wal-Mart, he said. The only effect he notices is that sometimes people will bring in products they bought at Wal-Mart to ask how they work.

With the prospect of a Supercenter in Montevideo, chamber director Evenstad said the chamber will be hosing seminars to teach businesses how to coexist -- not compete -- with Wal-Mart. Wal-Mart is a chamber member as well.

"We're all in the same community and we want all businesses do to very, very well," she said.

It's hard to maintain a strong business community in rural Minnesota as it is because there is just a smaller customer base, she said.

Monday, a group of Montevideo business owners called Montevideo First plans to ask the city council to study the effect a Supercenter could have on the city before making any decisions on it. The land Wal-Mart wants to build on has been annexed into city limits, city manager Steve Jones said.

Chambers and Economic Development Authorities have to walk a fine line whenever a large chain wants to build in town, Evenstad said. The development is often seen as a signal of growth in a community, but others fear its impact on other businesses.

"Any new business is good for the community," Evenstad said. "It's jobs and that's good as long as we don't lose anybody in the process."