RED OAK, Iowa (KMTV) — Bomgaars, an Iowa-based retailer best known for farm supplies, is renovating a former Kmart in Red Oak. The building has been empty since before the pandemic and neighbors are happy to see a new business there.
- "I'm getting so old that I can't get out of town, so it would be nice to be able to drive down and get a pair of socks," said Connie, who was getting lunch with her daughter downtown.
- Neighbors had to drive further to get the kinds of products they used to buy from Kmart, losing time and taking sales tax revenue out of the county.
- "You're talking about time on the road, gas and then you look at folks that are traveling there," Elaine Carlson, the executive director of Red Oak Chamber & Industry, said. "They're not just going to that store, they're going to spend their dollars elsewhere as well."
WATCH KATRINA'S STORY HERE
BROADCAST TRANSCRIPT:
You wouldn't know it to look at it now, but this former Kmart is where I went back to school shopping with my grandma in the '80s.
I'm your Southwest Iowa Neighborhood Reporter Katrina Markel in Red Oak. I'm here because this long vacant building is about to get a new life.
During lunch at Val's in downtown Red Oak, Connie and her daughter welcomed the news that Iowa-based retailer, Bomgaars, is moving into the former Kmart space.
"I'm getting so old that I can't get out of town, so it would be nice to be able to drive down and get a pair of socks," said Connie.
It was a blow when Kmart, followed by Shopko, closed seven years ago.
Elaine Carlson, executive director of Red Oak Chamber & Industry added, "...and it seems longer, probably because of COVID."
Neighbors had to drive to places like Shenandoah and Council Bluffs.
Local leaders say the loss was bigger than it seems.
"You're talking about time on the road, gas and then you look at folks that are traveling there," Carlson said. "They're not just going to that store, they're going to spend their dollars elsewhere as well."
"When Kmart closed its doors, our lost revenue decreased by 25-30-35 percent," said Montgomery County Supervisor Mike Olson.
Another snag, Carlson says, was that the out-of-state landlord wanted as much as $1 million for the property. Several businesses, including Bomgaars, walked away from an earlier deal.
"And because of the price, they just couldn't make that work," Carlson said.
"Bomgaars had been out of the mix for probably five or six years, so it was a huge surprise. A pleasant surprise, but a huge surprise," said Olson.
At lunch, Shirley is pleased to see progress: "Tt needs to have a refurbish or redo and be in business."
Known for farm supplies, Bomgaars also sells a range of products including clothes, so Connie should be able to get her socks.
The chamber expects a job fair in September, and if all goes smoothly, Bomgaars hopes to be open by Black Friday.
