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Students accelerate Eau Claire economy

Consumer spending, employment key factors in students' impact

Alexa Blatz

Issue date: 10/3/05 Section: Money
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"When college kids aren't around, it is a lot slower," she said. "They really do affect our business a lot."

With the rise of gas prices, Hedlund said she won't change how she manages her budget.

"I may conserve (money) a little more, but I will carpool once in awhile also," she said. "I think the economy will get back to normal soon with the gas prices."

Hedlund said some of the money she makes goes directly back into the Eau Claire economy through the store.

"Why not?" she said. "It's a good employee discount, and I love to shop for clothes."

Tiffany Richter, a business assistant specialist for the City of Eau Claire, said the city actively seeks to retain Eau Claire graduates throughout the area. She said 23 percent of last spring's graduates stayed to work in the Chippewa Valley, a fact she said makes an important impact on the local economy.

The mall is only one place students make and spend money. Businesses around campus also see variations in consumer spending due to Eau Claire students.

In 1964, Kerm Walker opened a grocery store on Water Street, close to campus. The choice of that location is still paying off today, said Mike Walker, son of Kerm Walker and current owner of Kerm's on Water Street, 329 Water St.

"It's one of the great assets that we have," Walker said.

The student population is about 25 to 30 percent of the store's business, he said.

During the Thanksgiving, Christmas and spring breaks, business is definitely slower because almost all of the students go home, Walker said. However, business is not as affected during summer break because there are some students who remain in Eau Claire.

Kerm's doesn't advertise very much, running only five to six ads per year, he said. There are other ways the store attracts students.

"We try to make a lot of items college students usually shop for more attractive on price," he said. "We also run deals on them, so they are cheaper."

Corey Hawkinson, assistant manager of Toppers Pizza, 1616 N. Clairemont Ave., said in the beginning, Toppers' business revolved around college students.

"There is a difference in sales when college students are around," he said.

He said not only are college students the largest consumers of Toppers, they also make up most of his staff.

Richter said the city recognizes students' influence on the local economy both through employment and consumer spending.

"I know that students are a very important part of Eau Claire," Richter said. "You live here, you work here and that has an economic impact."
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