Blog
Big Box Stores and the Inevitable Guilt that Consumes Me
An inevitable part of our daily lives but not exactly a memorable or enjoyable experience.
By Sean Mann
Alright, so I shop at the big box stores. Who doesn’t? They are modern marvels of consumerism where at any point of the day you can buy hummus, valve caps for your tires, an ottoman, live gold fish and a $3.99 sack of underwear. They’re amazing, although not nearly as amazing as the restraint of the checkout clerk who passes judgment but says nothing to me and my fellow retail urchins. Thankfully, most of these stores have converted to self-checkout lanes so I don’t have to make that awkward visceral connection with the checkout clerk and then feel compelled to explain why I needed to make the aforementioned purchases at 11:30 pm on a Tuesday night.
Obviously, I’m not alone when it comes to shopping at Wal-Mart, Meijer, Lowes, Target, or any of the other retail mega-stores. Americans are going to these big box national chain stores increasingly. They are even expanding here in Michigan during our historic recession, with Wal-Mart adding 13 stores in the coming year and ALDI adding another seven to Michigan’s chain retail potpourri. And the same could be said for chain restaurants, like Buffalo Wild Wings and so on.
It makes sense. The big box stores and chain restaurants offer convenience, merchandise at low prices, and familiar, generally non-threatening settings (excluding Long John Silver’s, obviously). But at what cost to our community and the things we value?
Of course the Big-Marts and PT O’Shenanigans employ people, and some may even offer decent wages and benefits, but what do they really give back to the community? That question regularly crosses my mind as I pull up to a Box Store. By the time I’ve traversed the football field of a parking lot, I can’t help but have a certain sense of guilt set in. Not because of the purchase I’m about to make, I swear I really did need that ceramic dog umbrella holder, but because I know the impact that the box stores have on my community and neighbors.
Sure one of these shopping experiences may be more convenient but which one is going to have the bigger impact on jobs and the local economy?
Locally owned businesses are the heart and soul of our communities. They fill up our Main Street storefronts, bring diversity in merchandise and experiences, and make our city distinguishable from the city at the next highway interchange.
But the argument for frequenting locally owned businesses over national chains goes beyond simple emotions and aesthetics, there’s a sound economic reason to do it.
· A 2008 study in Grand Rapids estimated that $1 million spent at chain restaurants produces about $600,000 in additional local economic activity and supports 10 jobs. Spending $1 million at local restaurants, meanwhile, generates over $900,000 in added local economic activity and supports 15 jobs.
· A recent study in San Francisco found that every $1 million spent at local bookstores creates $321,000 in additional economic activity in the area, including $119,000 in wages paid to local employees. That same $1 million spent at chain bookstores generates only $188,000 in local economic activity, including $71,000 in local wages.
· Locally owned businesses employ an array of supporting services. They hire architects, designers, cabinet shops, sign makers, and contractors for construction. Local accountants, insurance brokers, computer consultants, attorneys, and advertising agencies help run it. Local retailers and distributors also carry a higher percentage of locally produced goods than chains, meaning more jobs for local producers. In contrast, a new chain store typically is a clone of other units, eliminates the need for local planning, and uses a minimum of local goods and services.
· Even though the chain stores boast of creating hundreds of new jobs with each new store, numerous studies indicate they actually displace as many jobs as they create.
· Furthermore, the retail pie new chain stores are tapping into doesn’t tend to grow because of their arrival. One study found that 84 percent of Wal-Mart’s sales simply shifted dollars away from existing local (including some chains) retailers.
I can’t tell you, without reeking of hypocrisy, to abandon going to nationally owned businesses. They are too ingrained in our lives, and in certain cases offer things that local stores cannot. All I would suggest is examining how you spend your money and see in what ways you could spend your money as wisely as possible to support local businesses.
The most striking finding of the 2008 study of Grand Rapids and surrounding Kent County, was that if residents were to redirect just 10 percent of their total spending from chains to locally owned businesses, the result would be $140 million in new economic activity for the region, including 1,600 new jobs and $53 million in additional payroll. Shopping at the local store on Main Street is not about being anti-Wal-Mart, and goes beyond conservative or liberal labels, it’s about supporting your neighbors and maintaining the character of the community you chose to live in.
The Michigan State Housing and Development Authority’s Michigan Main Street Center puts a human face on the local businesses of this state. If it weren’t for these folks and your support of them, our cities would succumb to abandoned Main Streets and and lose their very identity.
I honestly don’t think I’m saying anything too controversial here. Just think. If I asked you to name your favorite restaurant or store where you have the best experiences, I would wager easy money that your favorite establishment is locally owned. So support them and their brethren as frequently as you can.
The Let's Save Michigan campaign is a new grassroots effort to get people personally involved in turning around Michigan through entrepreneurship, arts, and vibrant communities because we believe creating great, desirable cities is our road to renewed prosperity in the 21st century. To be a part of our campaign please sign-up.
In the meantime here are a couple ‘Local First’ initiatives that have been started in Michigan.
Ann Arbor and Washtenaw County http://thinklocalfirst.net/
Grand Rapids http://www.localfirst.com/
