Economic Impact Study Evaluates Retail Competition Near Upcoming Walmart in Lehi

The Hooper City Council held a work meeting on August 7, 2025, focusing on economic impacts related to new retail developments in the area. The meeting addressed concerns about competition from nearby stores, particularly the anticipated opening of a Walmart within two miles of existing grocery retailers.

Council members discussed the potential for "cannibalization" of sales, where new retail locations could draw customers away from existing businesses. The economic analysis presented suggested that while there are concerns about market saturation, the projected sales tax growth was set at a conservative 2.5%. This figure was chosen despite higher historical growth rates, including a notable increase during the COVID-19 pandemic, which saw annual sales growth reach nearly 6.5%.

The discussion highlighted the importance of understanding local market dynamics, including the impact of online shopping on retail sales. Council members acknowledged that while the 2.5% growth rate may seem low, it was deemed appropriate given the competitive landscape and the need for a cautious approach to forecasting.

The meeting concluded with a commitment to further evaluate the economic implications of the new retail developments and to consider additional market analysis to better inform future decisions. The council plans to continue monitoring the situation as new stores open and consumer behavior evolves.