The Pryor Times

Local News

April 1, 2014

LG cannot confirm Walmart rumors

PRYOR, OK —  Rumors are circulating regarding the possible construction of a Walmart Neighborhood Market in Locust Grove.

The rumors, however, cannot be substantiated by the Locust Grove Chamber of Commerce or the Locust Grove city office.

A chamber representative said they are aware of the rumors, but have not heard anything concrete. The city office simply said, “we can say there is someone looking at a location in Locust for a business, but we cannot say who it might be.”

Locust Grove community Facebook page is buzzing with the idea.

Some say the idea of a Walmart Neighborhood Market will increase sales tax revenue and create job opportunities. They also say the presence of a major retailer like Walmart will attract other businesses. Those opposed to the idea say the box store will drive out smaller businesses and infringe on the town's individuality.

According to a recent article in Forbes magazine, Walmart expected a three percent to five percent revenue growth but have seen less than impressive numbers so far in 2014. Forbes does report that, “despite the disappointing results and guidance, Walmart looks well positioned to propel its long-term growth. The retailer's smaller format stores like Neighborhood Markets and Express stores, continue to register robust sales.”

Walmart Neighbor-hood Market stores delivered a five percent growth in comparable sales during the 2014 fiscal report, according to Forbes, but the increase is not enough to have a noticeable impact on Walmart's overall  results.

“Traditionally, Wal-mart has been serving customers who make less frequent stock-up trips. It hasn't been as effective in catering to buyers needs for easy access, for which they usually go to a traditional convenience store. As a result, local convenience stores, like dollar stores, have been nibbling at Walmart's low-end customer base,” according to the Forbes article. “Expanding its smaller format network proves Walmart with an opportunity to win back those customers.”

Locust Grove residents wonder, if the rumors are true, what the change will mean for existing Dollar General and Harps Grocery store.

 

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