Isabella María Barrón Arizona Sonoran News
In some small towns, the introduction of national chains could raise concerns about competition for local businesses.
In Nogales, Arizona, residents and business owners are choosing to view chains as both a challenge and an opportunity for growth.
Nogales, a city of about 20,000 residents on the U.S.-Mexico border, has long relied on cross-border shoppers to support the local economy.
National retailers have had a foothold in Nogales since Kmart opened a store in 1976, followed by Walmart in 1989, but in the last decade the border town appears to have become a magnet.
The city has welcomed a wave of new retailers, including Hobby Lobby, Five Below, Marshalls and Old Navy. Soon, shoppers will have two Ross Dress for Less locations directly across the street.
The new Ross will open in the Loma Linda Shopping Plaza on Mariposa Road, which is also home to La Cinderella, a store that has sold women's shoes and accessories for decades. The store is owned by the Kory family, who have weathered the changes in retail in Nogales for generations.
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“Any time new retailers come in, there are concerns about competition,” said Evan Kory, a member of the family business La Cinderella.
Kory's family has operated two La Cinderella locations since opening their first store on Morley Avenue, right next to the port of entry. Although local businesses face competition, national chains can bring more people to Nogales and benefit the entire city, Kory said.
He added that La Cinderella sets itself apart with personalized customer service and products tailored to local tastes, something often missing from big box stores.
“Someone is always there to help you with shoe sizes or find the right earrings to go with a dress you might be wearing soon,” Kory said.
Olivia Ainza-Kramer, president and CEO of the Nogales-Santa Cruz County Chamber of Commerce, added that the influx of national chain stores is a positive boost for a city eager to grow.
“We are seeing national retailers choosing Nogales, and that is a strong signal of our potential,” Ainza-Kramer said.
Ross opened its new Nogales location at the Loma Linda Shopping Plaza on October 11th.
The Nogales Chamber of Commerce plays a critical role in helping local businesses manage this growth by providing advice, networking and resources to stay competitive. Since Ainza-Kramer took over, the chamber's membership has grown from fewer than 50 companies to nearly 375.
“We sit with business owners, review their plans and help them find ways to adapt and innovate,” Ainza-Kramer said. “Whether it’s marketing strategies, financial support or connecting with partners, we want businesses to thrive alongside the national chains.”
But not everyone is convinced that national chains alone will boost the city's economy.
David Moore, co-owner of David's Western Wear, has watched the evolution of retail in Nogales since his father opened the store in 1980.
“There have always been chain stores here, Safeway, Kmart, Walmart,” Moore said. “It's always been a problem for smaller companies to compete. And now that online sales dominate, it's even harder.”
Moore said Nogales has thrived in its role as a cross-border shopping center, especially before the advent of online retail.
In a city where about 60% of sales tax revenue is generated by Mexican nationals, according to the Greater Nogales Port Authority (via The Guardian), cross-border visitors are crucial to keeping the local economy afloat.
According to U.S. Customs and Border Protection, 932,438 people entered Arizona through the Nogales port of entry in August alone.
There were more than 10.9 million crossings in 2024 and this year is already close behind with 10.1 million travelers so far. For many local businesses, these intersections represent the steady, daily pulse of customers filling stores, restaurants and gas stations.
“People came from Mexico to buy higher quality U.S. goods, and Nogales prospered because of it,” Moore said. “But I don't think the city has really grown in the last five years. We're still trying to recover from the COVID shutdown.”
Still, his love for the community gives him hope.
“I'm a Nogales fan. I love this city and its people,” he said. “I'm not against growth. I just want us to do well as we grow.”
Arizona Sonoran News is a news service of the University of Arizona School of Journalism.