joconnell@journalnet.com

It appears the Gate City will lose ground in its effort to keep retail dollars from leaking to nearby Idaho Falls. While the local Sportsman's Warehouse store is scheduled to close in about three months, the Idaho Falls location will remain in business, the chain's chief executive officer, Stu Utgaard, said Tuesday.

Though the Pocatello location has been profitable since it opened in November 2006, Utgaard told the Journal Monday he'll be forced to close it and 22 other stores to pay down debt now that banks are being "relentless in trying to collect their loans."

Utgaard said the Canadian company UFA Co-operative Limited is seeking to acquire another 15 of his stores. Idaho Falls, however, will continue as a Sportsman's Warehouse, he said.

In response to the news, the mayors of Pocatello and Chubbuck both assured residents the local economy is weathering the current downturn much better than most places in the country. But they take the situation with Sportsman's Warehouse as further evidence that when it comes to chain retailers and restaurants, even Southeast Idaho is not immune to troubling national trends.

"At least on the surface, most of these stores as they make a decision to leave the area say, 'This particular store was making a profit. It was doing quite well. It was just an overall business decision to leave the area,'" Chubbuck Mayor Steven England said. "I think we're being affected by the national economy, but locally if we can encourage people to shop locally and spend their dollars here, we should continue to weather the storm better than most."

England said he's heard from several Chubbuck residents Tuesday that frequented Sportsman's Warehouse and are disappointed by the news, and he hopes a similar store will move into the community soon.

Pocatello Mayor Roger Chase added, "It baffles me sometimes what happens in the retail world. Retail and restaurants are the two businesses I worry a lot about even in the good times because a lot of that is driven at the national level."

But Chase also noted that Pocatello has so far bucked the national trend of rapidly rising unemployment - the city's February unemployment rate was 5.1 percent, which was actually down a bit from the preceding two months.

Chase had his suspicions that Pocatello is viewed throughout the state as an economic leader confirmed when he was in Boise Monday to receive an award from the Snake River Alliance for energy conservation.

"I've got legislators in Boise asking me, 'What do we need to be doing in Boise to stimulate our economy?' Most people look at our town and think we're doing a great job," Chase said.

While most economies are struggling, Pocatello's outlook is at least a mixed bag.

In Old Town Pocatello, a longtime business, Le Jardin, 257 N. Main St., is also preparing to close its doors. Le Jardin has already started its closing sale and plans to shutter its doors by mid-April.

But Old Town Pocatello Executive Director Stephanie Palagi still finds ample cause for optimism. Occupancy in Old Town is now 87 percent, compared with a high of 92 percent two summers ago.

"We always want to be at 100 percent occupancy, but there are Main Streets throughout the U.S. that would be extremely happy with 87 percent," Palagi said.

Old Town is also preparing to welcome a new business in the Kress building - a coffee shop with artwork and vinyl records enhancing the decor - on April 1. Furthermore, the long-vacant Whitman Hotel has been renovated and will soon house several occupants in new upper-level apartments.

"People who live in an Old Town area tend to shop and spend their disposable income in that area," Palagi said. "We're really going to keep a positive attitude, and I think that's the key for our entire community."

David Moss, general manager of the Pine Ridge Mall, also has a business scheduled to open April 1. Keepsake Kuties, a children's apparel store, will move into the former location of Dominion Wreaths, which closed in December.

Moss said the mall's occupancy rate is now 84 percent, compared with a national average of about 92 percent. The mall's largest vacant space is the former Dillard's store. Moss believes stores in the mall have enjoyed a boost due to the recent opening of Costco Wholesale.

Moss said sales in the mall have been flat this year; given the current state of the economy, he considers such numbers to be an accomplishment.

"We've done well holding strong as a mall entity. From a mall standpoint, we're making money, and our tenants are making money," Moss said.

Several large retail buildings remain vacant throughout Pocatello and Chubbuck including the former Albertsons, Fred Meyer, Crafts & Frames and Pier 1 Imports locations. But Chase notes there were more vacant buildings in the community about eight years ago, and the community rebounded. He sees no reason why that won't happen again.

"People see vacant buildings, and they wonder how your town is doing," Chase said. "As we've been saying for months, times are going to be tough, but we're positioned better than most communities."