For some small towns, the arrival of national chains might spark worry about competition for local businesses. 

In Nogales, Arizona, residents and business owners are choosing to see chains as both a challenge and an opportunity for growth. 

Nogales, a city of roughly 20,000 residents on the U.S.-Mexico border, has long relied on cross-border shoppers to support its local economy. 

National retailers have long had a foothold in Nogales since Kmart opened a store in 1976, followed by Walmart in 1989, but in the past decade the border city seems 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 from one another. 

The new Ross is opening in the Loma Linda Shopping Plaza on Mariposa Road, also home to La Cinderella, a shop that has sold women’s shoes and accessories for decades. The store is owned by the Kory family, who have weathered retail shifts in Nogales for generations.

“Any time new retailers come in, there’s always some concern about competition,” Evan Kory, a member of the family business of La Cinderella, said. 

Kory’s family has run two La Cinderella locations since they opened their first store on Morley Avenue right next to the port of entry. Kory said that despite bringing competition for local businesses, national chains can bring more people to Nogales and benefit the entire town. 

Kory added that La Cinderella differentiates itself through personalized customer service and products tailored to local tastes, something big box stores often lack.

“Someone is always there to help you find a shoe size or to find the right earrings to match 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 the influx of national chain stores represents positive momentum for a city that is eager to grow. 

“We’re seeing national retailers choose Nogales, and that sends a strong signal about our potential,” Ainza-Kramer said.

The Nogales Chamber of Commerce plays a vital role in helping local businesses navigate this growth, offering guidance, networking and resources to stay competitive. Since Ainza-Kramer took over, chamber membership has grown from fewer than 50 businesses 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 assistance, or connecting them 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 Nogales retail evolve since his father opened the shop in 1980.

“There have always been chain stores here, Safeway, Kmart, Walmart,” Moore said. “Competing with them has always been a problem for smaller businesses. And now, with online sales dominating, it’s even harder.”

Nogales straddles the international border with its Sonoran sister city and has long relied on cross-border shoppers to support its local economy. 

Nogales has thrived in its role as a cross-border shopping hub, especially before the rise of online retail, according to Moore. 

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 essential to keeping the local economy alive.

According to U.S. Customs and Border Protection, 932,438 people crossed into Arizona through the Nogales Port of Entry in August alone. 

In 2024, there were more than 10.9 million crossings and this year is already close behind with 10.1 million travelers so far. For many local businesses, those crossings 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 town has really grown in the last five years. We’re still trying to recover from the COVID shutdown.”

Even so, his love for the community keeps him hopeful. 

“I’m a Nogales fan. I love this town and its people,” he said. “I’m not against growth. I just want us to prosper as we grow.”

A second Ross Dress for Less location is set to open Oct. 11, at 351 W. Mariposa Road in the Loma Linda Shopping Center. Bath and Body Works is now open in the Mariposa Shopping Center, 210 W. Mariposa Road.

Arizona Sonoran News is a news service of the University of Arizona School of Journalism.