DeKalb tries to plug shopping leakage with new outlets

By Justin Gallagher

From out of the cornfields springs DeKalb, a city that continues to attract major retailers’ attention.

Recent efforts by community development officials are the primary cause for DeKalb’s expanding economy.

There has not always been a rosy outlook, however. The 2001 county’s apparel sales, just $74 per person, were lagging behind the Illinois county average, $378, by roughly 80 percent, said Paul Rasmussen, director of DeKalb’s community development.

By bringing in such stores as Target, TJ Maxx and Old Navy, this sort of market leakage has been slowed.

Market leakage occurs when a city’s or county’s residents shop in other counties because their own does not have the stores they need, Rasmussen said.

This was happening in nearly all retail sectors, but recent development has improved the situation, Rasmussen said. The city now needs a major sporting goods retailer, he said.

In Northland Plaza, in front of Borders, several buildings sit unoccupied, built to see what sort of business they would attract. No permits have been issued yet, but Rasmussen said he expects additional high-end chain stores to take advantage of the space.

DeKalbians now see their city as a viable option, one that is much easier to deal with than CherryVale Mall near Rockford and suburban shopping malls, Rasmussen said.

Although pleased about this success, Rasmussen is concerned about locally owned businesses losing their share of the DeKalb market.

According to a 2001 market study by the DeKalb Community Development Department, college towns are known for “a sort of informal franchise of offbeat shops, student-oriented bars and restaurants and businesses that cater to the unconventional tastes of college faculty.”

The closing of The House, 263 E. Lincoln Highway, marks a move in the wrong direction, Rasmussen said. He disagreed with people who say that businesses like The House do not survive because NIU is a commuter school and said the issue is not that simple.

Incentives need to be created that compel students to stay for the weekends, Rasmussen said. Retail stores, ethnic restaurants and youth-oriented shops with a more Bohemian atmosphere would give DeKalb the proper college-town feel, Rasmussen said.

“[College towns are] an extremely tolerant environment that allow eccentricity,” he said, adding that they are often unusually cosmopolitan for their size.

Rasmussen said the University of Wisconsin at Madison’s State Street area is a good model for DeKalb to follow.