Scott Ulmer, owner of Ulmer's Drug & Hardware, is opposed to Fred Meyer setting up shop in his hometown of Homer.

"It isn't just Fred Meyer for one thing; it is any store that will impact the economy of our community, as any box store would," he said. "I think it is going to affect my business like all businesses in this community. It is going to take a sizable part of my business."

Fred Meyer announced in late September 2003 its plan to build a 42,000-square-foot grocery store and adjacent 3,000-square-foot liquor outlet in downtown Homer.

The national grocery chain's expansion has stirred up controversy and public debate about the future look of the city's central business district and retail sector. That debate will likely continue throughout 2005 as Fred Meyer prepares to build on the corner of Lake Street and the Homer Bypass.

Ulmer estimated that when Fred Meyer opens its doors his business will lose one-third to one-half of its revenue, forcing him to layoff some of his employees, he said.

Fred Meyer has yet to set an opening date for the new store, nor has it finalized its construction plans, said Mary Loftin, vice president of public affairs. She added that the company is in the process of completing the necessary work before beginning construction along with waiting for the Homer City Council to decide whether it will increase the limit on the size of buildings within the city's central business district to 66,000 square feet.

If the size limit is raised, Fred Meyer would expand its building design to 66,000 square feet from its current design of a 45,000-square-foot building that would employ between 75 and 100 people, according to Loftin.

Ulmer said the size of the new Fred Meyer store - which will be at least double that of Ulmer's 20,000-square-foot department store - guarantees that the Portland, Ore.-based chain will dominate Homer's retail landscape, a change he does not want to see happen.

"I am fighting to retain and preserve the uniqueness of the economy of this community," he said. "Smaller businesses often offer their own unique personalities. When you get into the larger stores, they seem to be more cookie cutter - the inventory they cover, the service they offer."

Another long-time Homer resident and co-owner of Napa Auto Parts, Kevin Kiel, welcomes the Fred Meyer store because he thinks it will stimulate Homer's retail sector by encouraging more residents to shop in town, he said.

Kiel does, however, recognize that not all of the local merchants will benefit from Fred Meyer's arrival.

"They are going to hurt some people," he said. "There will probably be some stores that won't make it because of them. I don't think it will be a huge difference."

After managing the Napa Auto Parts store for 15 years, Kiel went in with his business partner, Mel Money, to buy the store Aug. 1 from Atlanta-based Genuine Parts Co.

According to Kiel, the company, in part, opted to sell the store because it believed a privately owned store would do better than a corporate-owned store, an idea he agrees with. "I think people are a little more loyal to a locally owned store than a corporate-owned store because they know their money is staying local."

As the manager of the store he owns, Kiel is like the majority of retail-store owners in Homer, said Derotha Ferraro, executive director of the Homer Chamber of Commerce.

"At the majority of places you can shop in Homer, you are not only shopping at a locally owned business, chances are nine out of 10 times the owner is standing behind the counter," she said.

It's this type of retail landscape that Kate Mitchell takes pride in, she said. Mitchell owns Nomar Canvas Products and Main Street Mercantile, both retail stores on East Pioneer Avenue in downtown Homer.

At the same time, Fred Meyer will offer some things currently unavailable in the town of about 5,000 people with another 8,000 beyond city limits, she said. "Homer probably needs somebody that can supply cheap kids' tennis shoes. But on the same token, how much do we want to see our town look like a parking lot?"

Mitchell does not expect Fred Meyer to impact Nomar's sales because the store makes the outdoor clothing and gear it sells. The Mercantile, however, may not fare as well since it is vulnerable to the type of pricing competition offered by Fred Meyer, she said.

PHOTO/Tyler Rhodes/AJOC

The Fred Meyer store off Abbott Road in Anchorage sees a lull traffic on a cold day in late December. The retail chain is moving forward with plans to build in Homer, a prospect that has some of the small town's businesses worried.

By Claire Chandler

Alaska Journal of Commerce

Despite the new jobs and access to goods readily available in the Lower 48, the influx of national retail chains accompanied by their vast seas of parking spaces has not been well-received by all Alaskans.

Scott Ulmer, owner of Ulmer's Drug & Hardware, is opposed to Fred Meyer setting up shop in his hometown of Homer.

"It isn't just Fred Meyer for one thing; it is any store that will impact the economy of our community, as any box store would," he said. "I think it is going to affect my business like all businesses in this community. It is going to take a sizable part of my business."

Fred Meyer announced in late September 2003 its plan to build a 42,000-square-foot grocery store and adjacent 3,000-square-foot liquor outlet in downtown Homer.

The national grocery chain's expansion has stirred up controversy and public debate about the future look of the city's central business district and retail sector. That debate will likely continue throughout 2005 as Fred Meyer prepares to build on the corner of Lake Street and the Homer Bypass.

Ulmer estimated that when Fred Meyer opens its doors his business will lose one-third to one-half of its revenue, forcing him to layoff some of his employees, he said.

Fred Meyer has yet to set an opening date for the new store, nor has it finalized its construction plans, said Mary Loftin, vice president of public affairs. She added that the company is in the process of completing the necessary work before beginning construction along with waiting for the Homer City Council to decide whether it will increase the limit on the size of buildings within the city's central business district to 66,000 square feet.

If the size limit is raised, Fred Meyer would expand its building design to 66,000 square feet from its current design of a 45,000-square-foot building that would employ between 75 and 100 people, according to Loftin.

Ulmer said the size of the new Fred Meyer store - which will be at least double that of Ulmer's 20,000-square-foot department store - guarantees that the Portland, Ore.-based chain will dominate Homer's retail landscape, a change he does not want to see happen.

"I am fighting to retain and preserve the uniqueness of the economy of this community," he said. "Smaller businesses often offer their own unique personalities. When you get into the larger stores, they seem to be more cookie cutter - the inventory they cover, the service they offer."

Another long-time Homer resident and co-owner of Napa Auto Parts, Kevin Kiel, welcomes the Fred Meyer store because he thinks it will stimulate Homer's retail sector by encouraging more residents to shop in town, he said.

Kiel does, however, recognize that not all of the local merchants will benefit from Fred Meyer's arrival.

"They are going to hurt some people," he said. "There will probably be some stores that won't make it because of them. I don't think it will be a huge difference."

After managing the Napa Auto Parts store for 15 years, Kiel went in with his business partner, Mel Money, to buy the store Aug. 1 from Atlanta-based Genuine Parts Co.

According to Kiel, the company, in part, opted to sell the store because it believed a privately owned store would do better than a corporate-owned store, an idea he agrees with. "I think people are a little more loyal to a locally owned store than a corporate-owned store because they know their money is staying local."

As the manager of the store he owns, Kiel is like the majority of retail-store owners in Homer, said Derotha Ferraro, executive director of the Homer Chamber of Commerce.

"At the majority of places you can shop in Homer, you are not only shopping at a locally owned business, chances are nine out of 10 times the owner is standing behind the counter," she said.

It's this type of retail landscape that Kate Mitchell takes pride in, she said. Mitchell owns Nomar Canvas Products and Main Street Mercantile, both retail stores on East Pioneer Avenue in downtown Homer.

At the same time, Fred Meyer will offer some things currently unavailable in the town of about 5,000 people with another 8,000 beyond city limits, she said. "Homer probably needs somebody that can supply cheap kids' tennis shoes. But on the same token, how much do we want to see our town look like a parking lot?"