Homegrown businesses learn to adjust to big chains

A walk down Massachusetts reveals a mixture of businesses almost as diverse as the many people milling around in Lawrence’s downtown.

Bars and restaurants neighbor second-hand clothing stores and jewelry shops. Appliance shops are adjacent to toy stores, and the eclectic scene draws shoppers of all description.

It has also caught the attention of national chains hoping to join Lawrence’s vibrant market.

In the past five years, national chains such as Starbucks Coffee, Gap Inc. and American Eagle Outfitters have moved into spaces along the city’s signature street.

Although some chains originally encountered resistance when they permeated the traditionally homegrown business atmosphere downtown, they have become valuable neighbors, said Maria Martin, co-director of Downtown Lawrence Inc.

National chains can draw shoppers to the area by carrying a volume and variety of goods that aren’t always available from independent businesses, she said.

“As a small business owner, I would rather they come down here and look instead of at a strip mall,” said Martin, who owns Southwest & More, 727 Mass.

While Martin said she and other private business owners benefit from the added foot traffic created by national chains downtown, she had concerns about the prospect of more “big box” retailers, like Home Depot and Best Buy, converging on the southern end of Iowa Street.

“You start doing too much of that, and it makes it very difficult for an independent business person to survive,” she said. “There is only so much money to be spent in a community. That’s why planning is so important.”

Maria Martin, co-director of Downtown Lawrence Inc. and owner of Southwest & More, says small businesses benefit from the added foot traffic created by national chains downtown. She's also concerned about more big

Martin cited the recent financial difficulties of some large retailers in Lawrence as a sign that Lawrence has reached its big box capacity. Payless Cashways, 3434 Iowa, closed its doors in fall 2001 and Kmart, 3106 Iowa, has been slated for closure by officials of the bankrupt retailer.

The failure of the Payless Cashways and Kmart is a sign of mismanagement at the national level and not a reflection of declining Lawrence demand, Lawrence attorney Todd Thompson said.

Thompson is representing Wal-Mart as it moves forward with a plan to add a second Lawrence location near the intersection of Sixth Street and Wakarusa Drive. Lawrence consumers showed they could support Wal-Mart, Kmart and Target and the addition of a second Wal-Mart will fill the void left by Kmart, Thompson said.

“I think Wal-Mart has shown a pretty good history in measuring if there is enough demand to support a store,” Thompson said.

Kansas University research economist Luke Middleton agreed that Lawrence has more than enough demand to support another general retail store and probably a few other retailers as well.

“Business here is good,” Middleton said. “It’s been good. It’s going to remain good.”

As for big box outlets harming local business owners in downtown, Middleton said that while downtown business will be strong for years to come, there is bound to be at least a slight shift toward retail outlets at the outskirts of the city.

“I don’t think Lawrence is going to become Detroit or anything,” he said. “But that is the trend.”