The Big Bad....improver of business?

It was the classic so-called Wal-Mart effect: Business began to shift to the newcomer and away from the town's main street, where her store is located. Ms. Westman, however, responded swiftly.

She ditched products in her store that were also carried at Wal-Mart, such as picture frames and candles. Instead, she returned to her shop's higher end roots of custom window coverings and one-of-a-kind sofas and chairs. Sales at Homeworks Custom Interiors recovered, and have since doubled to about $1-million a year, she says.

"I think there's a little bit of concern when Wal-Mart comes," Ms. Westman says. "It does worry a small town when it happens ... But we probably needed a kick in the pants, and to refocus."

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