Small Business Owner Faces Closure Thanks to New Neighborhood Walmart

 

SAN ANGELO, TX - The Eskimo Hut, located at 6005 Knickerbocker Rd., may be closing its door if sales don’t start to improve in the next few weeks.

Owner of the store, Deon Aylor, talked about the challenges she faced since the new neighborhood Walmart opened at 5154 Knickerbocker Road.

The second week of June, when the Walmart opened, is when the profits immediately started to drop, Aylor explained. She went on to say that her store had faced a lot of adversity before the opening of the Walmart, but nothing could compare to the drastic decline in profit.

“I don’t blame the consumer for wanting to save money,” Aylor said. “But we didn’t need five Walmarts in [San Angelo], especially the neighborhood Walmart that’s down by six convenient stores.”  

Aylor added that she understands the worst outcome for her business would be closing its doors, a fear that many business owners have dealt with.

“Closing the doors would be devastating,” Aylor said.

She has looked into selling, but after sending information to more than 25 people, none have provided an offer. Those people looking to buy would have to find ways to expand the business, which is something Aylor is used to doing in her five years of owning the Eskimo Hut.

Aylor had made adjustments to her business previously, like adding a grill inside to provide bar food for customers, and even selling draft beers until it became too taxing on her expenses. Unfortunately, these changes can’t compare to being in close proximity to Walmart and the prices offered there.

One change Aylor wanted to make in challenging Walmart was taking advantage of turning the back area of the store into a patio for her customers. She also recommended providing breakfast and lunch options.

Due to a franchise agreement with Eskimo Hut, Aylor can’t move within a five mile radius of the other Eskimo Hut closer to town. This leaves only a few options going forward. 

“My only options are to sell, [or] close the doors and lose out on around $150,000.”

She explained that she does not have the financial means to change locations to another city, so staying open and hoping for a buyer is her best approach.

Overall, weather conditions for those visiting the lake and the number of people living in the area determines the flow of customers, Aylor noted.

Additionally, unless there are more frequent activities out by Lake Nasworthy, which would help attract customers, Aylor foresees a greater decline in profit for the weeks ahead.

“There are so many things I have overcome, but this might be it [for the business].” 

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if you can't stand the heat get out of the kitchen. putting that sign up is childish as hell. only going to scare away more customers showing how petty you can be.

EHATL, Fri, 10/28/2016 - 15:22

I don't feel that it is childish. It's OK if you don't understand Joseph Kerr! The day that Walmart opened in June, I felt the impact as did the Stripes and Snack & Tackle! Walmart does this across America putting small businesses in jeopardy and/or out of business. The fact that Walmart came in this area with 5 convenience stores in place was nonsensical. All of the convenience stores are now tactically indefensible because of Walmart’s lower prices they can offer because they buy in bulk. Jack's is now starting their construction and I am sure they too will be impacted even though they are located before the new Walmart. Causing small businesses to close affects not just the owner and their family, but multiple people & other businesses to be impacted; employees losing their jobs, multiple Creditors, the Landlord, multiple Vendors will lose profits, the Lenders, and possibly causing bankruptcy for the owner (not to mention what that does to the economy) and absolutely ruining what the owner worked so very hard for which was to provide a product to customers and income for them & their family. Also the faithful customers who supported that business will be inconvenienced as well. A small business owner works very hard, has long hours and we are valuable; we are the Backbone of US economy.

While your opinion is, of course YOURS, not everyone agrees. There are some in this town that like to support local business owners. Why does San Angelo need 7 Wal-Marts/Neighborhood Markets? Or, for that matter, 4 Chik-Fil-A's? Maybe we use that space and money on something NEW for a change!

You are dead wrong. Walmart opens stores, destroys the business of smaller stores, and goes on if their profits don't suit them.
Ask Lamesa and Brownfield.
I don't blame the owner of the small business for being discouraged and angry. Walmart didn't care
Who they hurt, whether it's a small local business or their own employees.
If there is any choice, I will drive 30 miles to avoid Wal Mart.

NHLVN, Thu, 10/27/2016 - 12:47

I love love love having the Walmart neighborhood market near our home. I don't see how your business could be harmed from it if the 3 stripes stores near you don't don't hurt you.

There may be a drastic decline on things like sundries and snacks..... but Walmart doesn't sell some of the things she does. Time to get creative and sell the best Hot Dogs in town, the best Philly cheese steaks or some other ceative hook

EHATL, Fri, 10/28/2016 - 13:35

Beer & Tobacco which are both some of the top items that I sell, Walmart sells at a MUCH lower price. Frozen drinks are not the only items for sale to make profit from. These two items are what hurt me the most. I hear you on incorporating food and that is one of the selling points that I have told to potential buyers that they would have to start doing to make up for the decline in Beer & Tobacco sales.

In talking with others today, I have not found anyone who has visited this location. When they established their store they had strong competition from well established Stripes and also Spring Creek Marina. When they put in a grill next to the well established and very popular Pack-Saddle BBQ, people laughed as we walked by. Looking for someone to purchase the business with a sign out front like that would be a major turn off for most buyers. It seems this store made this site a while back facing the possibility of closing for another reason? Personally I am excited about the new neighborhood markets from Wal-mart. They were built where we did lack grocery stores. I like that I can stop by either one of them on the way home and they are on my way. I also know others have mentioned to me how great they are in location. It is always sad to see a business close and I hope they can turn it around. Maybe a drive through would help?

The problem here is not Walmart. That area is full of convenience stores, restaurants, small retail shops, etc.. The Walmart changed the traffic patterns but the truth is just moved customers around. It's easy to get caught up in a commodity trap where the only thing you see that makes you different than the next business down the road is who has the cheapest box of corn flakes or gallon of gas or what ever today's lowest priced commodity is that leads to razor thin margin where only those with the deep pockets survive . You want to win in that environment take your box of corn flakes and make it your own. Something special. Do it through service or excellence or uniqueness or trust or what ever your strengths are. You can't compete on price unless you've got size and weight. Compete on what makes you and your business and your product special, unique, and loaded with real value that Walmart can't even try to compete with. Look around at Walmart's both here in town and across the country and there are always successful businesses in the shadow of Walmart turning the traffic walmart generates to their profit. Or turning their "I'm you not just another big box. We have shared character, beliefs, and values you can trust" and making that highly value valued and often profitable and successful business. There are specialty and mom and pop shops that thrive because they can provide the real human and quality deal when Big Box stores can only provide just another box of the same old same old corn flakes.

Most businesses that "beat" Big Box Stores do so only after they recognize who their real competitors are and realize that their biggest competitors are their own misconceptions and preconceptions. You don't win by beating Walmart. You win by beating your mistaken idea of what it takes to win.

You want to beat Walmart (or any Big Box) don't play by their rules. Make and play by your own.

Nothing is this world is constant. CHANGE will happen whether one likes it or not. Only things certain is Death. Back to Wal-Mart, no business whether a Mom or Pop shop or corporate business has the right to stop competition. Business need to adapt and evolve if they want to survive. Think outside the box and come up with new ways to bring customers in. Many citizens do not want to walk into a big store and are looking for a small store that has what they need. It is convenience that will attract customers.

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