A University of Tennessee retail expert said Cookeville’s economy likely attracted Home Depot and Target to the Upper Cumberland.
University of Tennessee Boyd Center Business and Economic Research Director Don Bruce said it is uncommon right now to see major retailers constructing new locations as many retailers nationwide are reducing locations. Bruce said major retailers look for good local economies.
“We’ve seen really good job growth in Putnam County in the last couple of years,” Bruce said. “We’ve seen population growth. Folks are moving into that area, it remains a vibrant local economy and I think this is just additional evidence.”
Nationwide major retailers are closing locations with Cookeville seeing Party City close. Bruce said the reason many retailers are closing is more about how we shop rather than how much we shop.
“With the emergence of online commerce internet sales have continued to grow as a share of all retail activity,” Bruce said. “And for a lot of things we just simply don’t need to put them in our hands and touch them and smell them and try them out in person before we make the purchase. For a lot of things, we know exactly what we are getting and so we are more comfortable going online and making those purchases, so the demand for in-person retail has shifted pretty dramatically.”
Bruce said though we may see more retailers closing he does not expect a constant trend that dwindles to zero in-person retailers.
Bruce said the two major retailers would not only serve Cookeville but the entire Upper Cumberland as people will travel to shop at the locations because they are well-known and trusted brands. Bruce said another reason the major retailers were likely attracted was due to the location being off of I-40 is an ideal location for major retailers.
“These brands are established networks as well and so your location is really important strategically for the supply chain,” Bruce said. “You are right near the interstate, right on the interstate effectively. You are really accessible to major supply depots, airports, trucking centers, and so on, so there are a lot of other factors in terms of the supply chain that really matter here and are obviously at play.”
Bruce said a retail store like Home Depot is slightly different than most retailers and has a need for in-person retail.
“When you think about Home Depot that’s a place that specializes in things that are hard to buy online,” Bruce said. “I’m not gonna go online necessarily and buy a bunch of plywood or two-by-fours or even building supplies. I would like to go with my truck and pick those things up and have them on hand and you know those are things that you don’t see as much on online commerce. Even if you buy the thing online you’re probably gonna have to go to the store and pick it up.”
