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Sophomore cashier Katelyn Nelson rings up items of Chippewa Valley Technical College student Megan Smith as she makes a purchase at Kerm´s on Water Street, 329 Water St.

Students accelerate Eau Claire economy

Consumer spending, employment key factors in students' impact

By: Alexa Blatz

Posted: 10/3/05

As mostly temporary residents of Eau Claire, students take up the roads, use the public library and enjoy other aspects of the city.

Yet, business owners and economics professors agree students also contribute a great deal to the economy.

Wayne Carroll, professor of economics at UW-Eau Claire, said the influence of students on Eau Claire's economy is substantial.

"Students have a significant positive impact on boosting the local economy," Carroll said, adding there is a lot of local spending by students.

The population also provides potential employees for various retail establishments, he said.

"Students supply a large amount of labor to the labor market," said Edward Young, professor of economics. "There are a lot of mini malls around Eau Claire. Without students, it would be hard finding employees to work there."

Eau Claire would be a much different place economically without students, Young said.

Students who work off campus agree Eau Claire is a different place when students are not around to spend money.

Sophomore Jessica Kircher, who is employed both by Sears, in Oakwood Mall, and Red Lobster, 1019 W. Clairemont Ave., said, "I worked at Red Lobster during the summer and it definitely started picking up once school started."

She said she also notices large groups of people from the dorms go there to celebrate birthdays, giving Red Lobster a lot student patrons.

"It may be because of the location. It's easy for students to walk over here from the dorms," Kircher said. "Sears is a different story, not many college students shop there for clothes, but it seems to be busier than usual on the weekends."

Kircher said she is more careful about her spending habits, and only spends money on necessities such as food and gas. The rest of her money goes into savings for studying abroad next spring.

Sophomore Jessica Hedlund has worked at Hollister, in Oakwood Mall, for two years. She said she also notices a change when students are in town.

"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."