June 30, 2004

Red, white, blue and green

By Shera Dalin
St. Louis Post-Dispatch

In a declaration of independents, some locally owned businesses are urging
people to spend money with them during the Fourth of July week rather than at
large chain stores.

Today through Wednesday, homegrown businesses will celebrate national
"Independents Week," organized by the American Independent Business Alliance.
The Alliance encourages shoppers to spend locally, rather than with chains. The
group says that will boost hometown economies and help level the playing field
for the smaller companies.

"For every dollar spent in a local independent, about 45 percent gets
reinvested in the local community, versus about 15 percent for the chains,"
said Michael B. Levinson, director of the local independents organization,
Businesses United for Independent Local Development.

The group isn't discouraging shopping at chain stores. Rather, its 67 local
members say consumers boost the area economy more by shopping with them because
the owners are more likely to buy local services and goods.

"Every dollar that you spend stays here," said Kelly von Plonski, co-owner of
Businesses United member company Subterranean Books. "It goes to pay my
business partner and myself, who own our houses here and who hire local
contractors to fix our houses, use local credit unions and shop at local
grocery stores."

Robert Brockhaus, director of the Jefferson Smurfit Center for Entrepreneurial
Studies at St. Louis University, said there is some logic to the idea of money
spent at local businesses staying in the hometown economy longer than money
spent with chain stores.

However, sales at chain stores around the world benefit local shareholders by
increasing the value of their stock, he said. "If I own stock in Wal-Mart and
you buy something from Wal-Mart in California, I as a shareholder will
benefit," he said.

Chains also benefit local economies because of the sheer number of people they
employ and the money they spend in their hometowns, Brockhaus said. Chains also
have more resources available to donate for charitable causes.

The challenge for non-chain stores is to carry a unique product line and offer
excellent service that will distinguish them from the mass retailers, Brockhaus
said.

MacroSun International owner Gil Williams said many consumers falsely believe
that they'll pay more at small stores.

"I can compete on price when you compare apples to apples, said Williams, whose
Delmar Loop shop specializes in fair-trade arts and crafts.

Other times, chains win out because buyers haven't heard of the local vendors,
Levinson said. "Consumers go to chains because they are convenient, and they
hear about them on TV," he said.

BUILD St. Louis is compiling a list of homegrown businesses to help improve
shoppers' awareness. The group also plans to do more lobbying of city councils
on issues affecting its members, Levinson said.

The Independent Business Alliance grew out of a movement in Tampa, Fla., two
years ago to promote spending with local companies. Other cities that are
participating in Independents Week include Austin, Texas, and Santa Fe, N.M.

The Alliance is particularly concerned with the subsidies that city and county
governments give to large chains, which in many cases displace smaller stores.

"When city governments are so dependent on sales tax revenue, they're easily
persuaded by promises of new jobs and increased revenue," said Alliance
Outreach Director Jeff Milchen.

"They often fail to consider the long-term effects of relying so heavily on
chains - the number of local jobs and businesses displaced, for example, and
the increased city services required by chain developments," he said.

BUILD St. Louis Independents Week Events

7 p.m. today: Silent Auction, Schlafly Tap Room, to benefit the International
                      Institute Micro Credit Program and BUILD
Friday: Left Bank Books holds voter registration and donates 5 percent of sales
             to BUILD
Saturday: Vintage Vinyl offers voter registration, $3 coupons
Monday: Plowsharing Crafts fair-trade product tasting of coffee, fruit, and
               chocolate
Tuesday: MacroSun International demonstrates Tibetan Buddhist Thangka Painting
               and offers a 5 percent discount
Wednesday: Free massage and body composition testing at the Brentwood Center of
                    Health by appointment, 314-961-8940
Information: 314-808-8032

©St. Louis Post-Dispatch 2004

 

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