Downtown "evolving," says ECISC boss

The closures of stores in downtown Mountain Home doesn't mean Mountain Home is dying, it's merely "evolving," says Ron Swearingen, head of the community economic development effort.

"What am I going to do about it? I don't know. It's exactly what's going on everywhere else, especially in small towns.

"Expansion happens on the fringes. You don't see a Wal-Mart or a Kmart going into the downtown core areas and tearing down buildings to put up a new store. They build on the fringes of towns, where the property's available. When you're a growing community, that's what happens."

And "large box" retailers like Kmart and Wal-Mart, located on the edge of town, will naturally draw customers away from some of the older retail areas, he noted.

"That means the only things left in downtown Mountain Home, or Jerome or Nampa or Boise, are financial institutions, niche stores, supply stores, professional offices and some eating or entertainment places.

"What's happening isn't unexpected, and it doesn't mean the economy is in decline. We've had a lot of new businesses open in the last five years, it's just that they haven't located downtown."

But some of the businesses were going to go out of business with or without the big retailers up on the hill. Some were marginal to begin with, some weren't run well, and some downtown businesses closed simply because the owners had reached retirement age.

In fact, Swearingen pointed out, while the number of "foot traffic" retailers has gone down in recent years in the downtown area, few of the buildings have remained boarded up. "What's there has just changed, that's all.

"That's why we started the downtown revitalization effort a couple years ago," he said, "before it became a plywood window capital."

Some of the retailers downtown began having problems when Kmart first appeared. The arrival of Wal-Mart then pushed them over the edge, Swearingen said.

"Wal-Mart had a huge impact," he admitted. "The little guys just can't compete -- at least on prices. Those big retailers can buy in bulk and they can afford to have wider selections.

"Do I like it? No. Can I stop it? No. I hate it. I worked at the Hub as a kid. I hate to see them go. I have a lot of fond memories working and shopping there. But they just can't compete with the big-box retailers. The Hub can show you 25 nice shirts your size. But you can go to the mall (in Boise) and see 2,000."

But that doesn't mean small businesses can't compete at all.

When Kmart first came to town, a lot of downtown retailers panicked. The Chamber of Commerce brought in experts to help teach them how to compete. "Some listened, some didn't," Swearingen said. "Some were just too set in their ways and couldn't adapt."

The key to competing with the big retailers, Swearingen said, "is doing the things they don't do. You can sell items that are either a lot cheaper or a lot more expensive.

"And those big-box retailers don't service, assemble or accessorize.

"Why does Tony (Haberland at Tony's Bicycle Shop) do so well. You can buy a bike cheaper at Wal-Mart. But Tony can put it together for you and he can fix it and accessorize it, customize just for you. They won't do that.

"Or look at Jim Alexander (at Sav-Mor Drug). The big stores on the hill have pharmacies, and they can buy in bulk. But they don't deliver. If you're sick, or homebound, Jim gets in his car and drives it out to you.

"Or look at my brother, Ed (at Photo Express). He can't buy film in bulk for what Wal-Mart charges retail. But Wal-Mart isn't going to go shoot pictures for your Little League team. "It's providing services where the little can get an edge," Swearingen said.

Still, he's concerned.

"Our number one job (at the economic development office) is retaining the jobs (businesses) we already have, then helping them expand. We hate it when a local business closes."

The economic development office, funded by the city, works with local businesses to obtain financing, especially the small-loan "micro-financing" that banks are reluctant to do. "We also direct them to other resources" such as the Small Business Administration, helping them with the paperwork, "and we apprise them of various options open to them, and give them the most recent demographics so they can make good planning decisions."

He said when a store closes in Mountain Home, such as King's and The Hub, "we've already contacted the owners of those buildings so we can pass along information about them to someone that might want it."

Right now, Mountain Home is just the wrong size for some businesses. Some specialty stores, in particular specialty restaurants, simply can't make it with only 12,000 people to draw on. "We'd have to just about double in size before we start seeing anything like that other than a franchise chain. You just can't pay back a million-dollar investment in 18 months here, right now."

But Mountain Home is getting to the point where some service businesses, such as an engineer, an architect, or a surveyor, could probably open up and survive, he said.

"And that's what you're going to see more and more of in the downtown area. Service stores, specialty shops and professional offices. It's simply evolving. I remember when there were four gas stations and two department stores downtown. When King's came in, a lot of retailers pitched a fit, making the same complaints they're making now about Wal-Mart.

"The point is, I can guarantee to you that every store downtown is going to close. But whether it's next month, or next century, I can't tell you.

"It's the evolving nature of towns."