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Love 'em or hate 'em, big box retailers are here to stay

Big box retail stores. Their place is secure on the American landscape, underscored by widespread consumer patronage. With superstores carrying the banners of Wal-Mart, Sam's Club, Target, Lowe's Home Improvement Center and 84 Lumber, one need not travel far to find a superstore in Volusia County.


The county's new Super Target is on Dunlawton Avenue in Port Orange.

The giant retail establishments can range from 50,000 square feet to more than 200,000 square feet under roof and serve varied markets. Stores such as 84 Lumber primarily serve contractors. Sam's Clubs strive to meet the needs of small businesses. Supercenters such as Target and Wal-Mart are one-stop shopping centers for consumers where they can shop for dry goods, groceries, pharmaceuticals, light hardware, landscape supplies, automotive products and more.

Despite the fact that big box stores are well represented in Volusia County, ribbon cuttings don't come easily. "We are pleased to be doing business in Volusia County," said Beverly Rick, a spokesperson for Sam's Club based in Bentonville, Arkansas. "But it takes a great deal of time and effort to open a store."


Sam's Club Warehouse is on Beville Road in South Daytona.

The new Wal-Mart Supercenter in DeLand, a 240,000-square-foot building, opened after five years of zoning and environmental challenges, community forums and political debates. Tack on another few years to study demographic trends, economic stability and market potential and the incubation period for a super center can approach 10 years and cost millions of dollars, according to the retailers. Clearly, the corporations behind the stores know the upfront commitment of time, money and political will is substantial if their flag is to fly in a particular community.
Volusia County is no exception.

"The requirements for these stores are substantial," said Mary Schnebly, a Volusia County Land Development Administrative Assistant. "There are stringent requirements that include parking, stormwater management, emergency vehicle access and a host of environmental considerations. Equally stringent are the requirements relative to the building itself."

While the permitting process is the responsibility of government staff, such projects are not popular among some elected officials who ultimately vote thumbs up or down on supercenter proposals. The political conflict that often can arise during the development process, along with the difficulty of simultaneously serving the taxpayers and protecting them, makes it hard for office holders to lead the charge for supercenters. Many elected officials are quick to say their wish lists do not include more big box stores. They are eager to state their loyalty to local, family-owned businesses. However, when asked whether they shop the superstores, most admit they do on occasion, citing the convenience of one-stop shopping.

Sensitive to their role as corporate citizens, the corporations whose flags fly over the superstores are proud of the stores, grateful for their customers and quickly point to their community involvement and contributions to the communities they serve.

Wal-Mart Stores, Inc., operates more than 2,942 discount stores, supercenters and neighborhood markets and has more than 530 Sam's Clubs in the United States. Company officials said last year Wal-Mart Stores, Inc.,


The new Wal-Mart Supercenter in DeLand, a 240,000-square-foot building, opened after five years of zoning and environmental challenges, community forums and political debates.

contributed more than $150 million to support communities and non-profit organizations. Customers raised an additional $75 million with the help of stores and clubs.

This contributed to the company having received the 2003 Fortune Magazine's Number One Most Admired Company in the United States designation and having received the 2002 Ron Brown Award, the highest presidential award recognizing outstanding achievement in employee relations and community initiatives.

Target Corporation, with 1,189 stores bearing the Target name (other brands of the corporation include Merwyn's and Marshall Field's), contributes $2 million per week in support of neighborhood programs and schools, according to the company. It also has an affinity program that generates funds for local schools.

There are 875 Lowe's Home Improvement Centers that contribute $1.5 million annually to individuals and organizations along with an active commitment to local volunteer support of community initiatives. 84 Lumber (named for the town of Eighty Four, Pennsylvania) has 453 stores and also lists numerous charitable contributions, mostly community-based.

Convenience and community involvement notwithstanding, the presence of superstores in Volusia County is the sort of economic barometer that can be an affirmation of vitality of the local economy.

"In one sense, the fact that we do have several superstores underscores our belief this is a vital market with a bright future," said Volusia County Department of Economic Development Director Rick Michael. The research and analysis these corporations conduct before committing to a market such as Volusia County is formidable. Clearly, they like what they see."

Michael's department does not recruit these super-sized retail establishments, but it does keep a sharp eye on demographic trends and economic indicators, including the number and placement of superstores.

The challenges posed by supercenters do not evaporate after the ribbon is cut. Sometimes, the commencement of operations at one new supercenter leads directly or indirectly to the demise of another. In Daytona Beach, Builder's Square on International Speedway Boulevard closed while nearby Home Depot thrived.

The building vacated by Builder's Square remains vacant. In Ormond Beach, Big K-Mart closed in the wake of competition from Wal-Mart Supercenter just across the street. Last month, Beall's opened in space formerly occupied by Big K-Mart. The Ormond Beach location Wal-Mart vacated before moving west of downtown and upsizing to a supercenter was vacant for some time before becoming a Winn-Dixie Marketplace.

Michael notes that vacated supercenter facilities add to the inventory of available space, a useful tool in the economic development process. However, he also acknowledges that such space usually requires substantial retrofitting before becoming an office complex or manufacturing facility. Just because a building's location was selected for retail use does not mean it will work well for non-retail applications, he explained.

On balance, big box stores appear to be as subject to the influences of success and failure as any other establishment, only the stakes are higher.

Whether we love 'em or hate 'em enough of us patronize them to make them a winner, at least in the accounting offices of the corporations behind them.

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Department of Economic Development
700 Catalina Drive, Suite 200
Daytona Beach, FL 32114
Telephone:
386-248-8048
FAX: 386 238-4761
Toll Free: 800-554-3801

Phil Ehlinger
Director
doed@volusia.org

 

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