Winrock explains boosting local economy

On June 8, a modest group showed up at the Auditorium for a workshop on the local retail landscape presented by representatives of Winrock International, a nonprofit organization that focuses on social, agricultural and environmental issues around the world. WI is part of the Winthrop Rockefeller Charitable Trust established by the former governor of Arkansas.

Mayor Butch Berry opened by announcing that Winrock staff, in consultation with the Mayor’s Task Force on Economic Development, had compiled data from several sources to prepare an initial look at retail in Eureka Springs.

Sandy Martin, chair of the Mayor’s Task Force, said in a conversation after the meeting that Winrock gathered extensive information from outside sources, then added data from Task Force surveys and the Chamber of Commerce, and responses to questionnaires at two large conferences in town. Berry said the purpose of the workshop was to introduce the data to locals and figure out what to do next.

Michelle Perez, a Winrock program associate, said WI engages in strategic partnerships whereby her team works with the interests and talents of city leaders and members of the community to grow the local economy.

Mark Goodman, president of economic development consulting firm Goodman and Associates, said he and his team would be in town through autumn collecting more data about retail sales trends. He wants to determine where locals go to buy goods and services, and if they leave town to buy certain items, where do they go and what do they buy? He called this retail leakage, and since cities depend on sales tax for revenue, leakage can have a serious economic development impact.

Goodman said statistics from several sources show retail in Eureka Springs and Carroll County is trending up. He explained the trade area for Eureka Springs is where people should come from to buy goods and services in town, but his opinion was the trade area should be bigger. He saw an opportunity for locals to find out what folks in the 20-minute drive area need, and make it available here.

Providing day-to-day items for locals would make a huge difference to the local economy, he said, pointing out that retail hours matter. Many people cannot shop until the evening, so closing at 5 p.m. inevitably leads to leakage, as do Internet sales.

Mike Gerfen of the Institute for Economic Advancement at the University of Arkansas-Little Rock said he worked with Winrock to survey the retail environment of Lake Village in southeast Arkansas. They collected zip codes during busier months and asked customers where they went to get goods and services and why. They discovered many shoppers preferred the 20-minute drive to Greenville, Miss., because of the larger selection of items and lower costs.

“Having data from accurate surveys enables you to take control of the narrative,” Gerfen commented.

Goodman acknowledged the Chamber of Commerce had collected data at the Visitor Center, but these responses do not accurately reflect who is shopping downtown. He said the information Winrock already has already indicates Eureka Springs has some low revenue areas such as electronics and office supplies, and these dips in the retail spectrum are opportunities.

“There are no other towns like Eureka Springs,” Goodman said, floating there are plenty of opportunities for economic development.

Winrock will conduct other workshops during the year with further analysis of data they collect plus advice on branding and marketing.