Wal-Mart confirms E. Dundee store closing

Wal-Mart officials have confirmed that the world's largest retailer will close its East Dundee store once the company opens a Supercenter in neighboring West Dundee.

Though East Dundee officials and residents had speculated on the store's demise for months, Wal-Mart had not previously given definitive word that it would shutter the store that has stood on Route 25 for the better part of two decades.

But village officials said they met Friday with a Wal-Mart representative and were told that their largest sales tax generator would be moving out of town.

"They have now taken the official position that they are going to leave East Dundee," Village President Dan O'Leary said.

The West Dundee Village Board recently granted the planned 186,000 square-foot Supercenter final plat approval and Wal-Mart officials said the company would file building permits as soon as possible. The board's decision led to a lawsuit against the village and other parties filed by a group of residents opposed to the development.

It is not known how the lawsuit may affect the West Dundee project. A Wal-Mart representative did not return calls for comment Tuesday.

Though Wal-Mart did not give a specific timeline, O'Leary believes it would take at least a year for the West Dundee store to open.

Employees at the East Dundee store will have the opportunity to transfer to the larger West Dundee store, which is expected to create about 200 additional jobs, East Dundee's economic development consultant Robert Skurla said.

"The East Dundee store will close one night and the next day employees will start work at the West Dundee store," Skurla said.

Wal-Mart's departure would leave a vacant 120,000 square-foot retail center on the village's struggling Route 25 corridor. It would also take with it a huge chunk of the village's sales tax revenue.

Skurla said the retailer alone accounts for as much as 20 percent of the village's sales tax base, or about $700,000 annually. The village has taken action to pre-empt the anticipated revenue slump by trimming 6 percent from its current budget and scouting potential retailers to take over the space.

"Are we going to find a better retailer that is going to bring in more sales tax than Wal-Mart? I wouldn't hold my breath," Skurla said. "But are we going to find a retailer that will bring in some sales tax? Yes."