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Big box
For example, when the researchers compared the five Development Agency (CCDA), says anecdotal evidence
states with the highest rate of Wal-Marts per capita and would indicate that the big box stores have to have some
the five with the lowest, what they found was that, on impact on small businesses because of the volume of
average, the former had more small businesses per capita stock they sell.
and higher rates of self-employment.
stores aren't
On the other hand, he thinks that because downtown
Closer to home, Paul McElhone, associate director of businesses offer more specialty and boutique-like kinds
the retailing school at the University of Alberta, says the of products, they're less susceptible to being affected.
entry of Wal-Mart into a market pinches less than 10 per
“Downtown has remained busy and 2008 was just a
always bad for
cent of local stores’ business.
great year for the downtown business area both with
For the most part he claims that it’s largely marginal the number and quality of events and with sales,” Webb
businesses that are affected the most, whereas the arrival states.
local retailers
of big box stores makes other small businesses better.
“There are still a lot of people shopping downtown, but
Those findings don’t surprise two local experts on small there’s definitely an air of uncertainty because of these
business operations in Medicine Hat. economic times.”
A former small business owner, Ald. Jeremy Thompson, Elsewhere in the city, the 34-acre Southlands Crossing
ANGUS HENDERSON
thinks the recent arrival of a number of big box stores in Power Centre site situated on Strachan Road has been
ahenderson@medicinehatnews.com
the Medicine Hat area has resulted in some positives for building up over the past year with its two major anchors,
small businesses. the more than 200,000 sq. ft. Wal-Mart Supercentre and
100,000 sq. ft Canadian Tire having opened last fall.
Conventional wisdom has it that the onslaught of big box
“Some of the big box stores don’t have the service level
stores is bad news for small businesses, but the reality
of the unique products that some of our downtown Other tenants include a TD Bank, GNC (General
appears to be more of a middle of the road kind of answer
businesses and other small businesses in town have,” he Nutrition Centres), Petsmart, Starbucks, Dairy Queen,
— yes and no.
says. Tony Roma’s, Marks Work Wearhouse and Edo of Japan
(restaurant), Ashley Furniture, and Chatters Salon.
University of West Virginia economists Russell Sobel and
“If you go into a smaller business, you’re going to get
Andrea Dean set out to measure the impact of big box
a higher level of service then you would at a big box Northwest Crescent Height is starting to see some
stores on small businesses in the U.S. and found what
store.” additional development as well. Calgary-based Hopewell
they termed a trend of “creative destruction.”
Thompson added that he’s a firm believer that big box
Development Corporation got the go ahead from the city
for the first phase of a proposed four-phase shopping
What that means is that although the so-called Mom &
stores and small businesses can co-exist.
centre at 2350 Division Avenue N.W. (across from the
Pop hardware or grocery store might go under, other
“From a consumer standpoint, there are advantages to
Medicine Hat Family Leisure Centre). It will be anchored
types of small businesses rise in their place, fueled in part
having both,” he stated.
by Shoppers Drug Mart.
by the money now being saved via cheaper goods.
George Webb, executive director of the City Centre
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