Sunday, February 8, 2009

THE MEANING OF "THINK GLOBAL, BUY LOCAL"

We hear this phrase quite often these days, but does anyone really stop and think about its significance? Does the average shopper in Altadena really understand how supporting your local independent businesses helps support the entire community? I suspect they don’t, as I sit here looking at my store which is devoid of any customers. One of my new year’s resolutions was to promise myself that I’d start writing blog posts with more relevant content on how our store and the Webster’s shopping complex as a whole is interconnected with our community’s economic future. This is the first step in this undertaking and I sincerely hope that these posts will help foster some new ideas. I’ve started this post several times and erased everything because it sounded so stiff. Just be yourself, Lori, I thought, and speak from your heart, so here goes.

Before Scott and I took over Webster’s Fine Stationers, I was an avid shopper. I love to shop, to window browse, to look to see what’s new. I’m a decorator, so I love bringing something nice home for the house, for Scott or for me but I never really stopped and thought about where I shopped. Pier One’s got some table linens at ½ off? I’m there with bells on and wallet out! Pottery Barn’s got a glass cloche (bell jar) for $49.99? Ka-ching, it’s mine, as are Z Gallerie’s huge apothecary jars. I never stopped to think that I maybe could’ve gotten any of these items from a local independent retailer. Why is that? We are so conditioned to the advertisements and catalogs sent from these huge chains, these corporate stores, these big-boxes, that we forget about the little guys. We are so intent on saving a few bucks that we will spend almost that entire savings in gas driving to the chain retailer of choice, never realizing the impact this has on our local enconomy. It took the ownership of an independent retail store and educating myself about these things for me to realize what's happening....I'd like to share this with you so you'll be aware, too.

So what happens when you patronize only these types of chain stores? Ok, let’s explain it is way….only about 1/3 of your dollar stays in your community when you buy from one of them. “We often assume that the dramatic growth of chains is solely the result of consumer choices, when in fact government has a hand in this trend. Over the last decade, cities and towns have spent billions of dollars subsidizing the development of big-box stores and shopping centers. Tax policies in many states are riddled with loopholes that allow large retailers to duck their tax obligations, while small businesses are left to shoulder their full share,” says Stacy Mitchell, researcher and author, recently quoted in the trade publication “On Point”.

She goes on to talk about “buy local” campaigns throughout the country and comments, “What makes these campaigns effective? Part of the answer is that they are not simply empty marketing slogans. They draw on a growing body of research. Some of the most compelling has to do with the added economic benefit of locally-owned businesses. Several studies have found that a dollar spent at an independent business generates more economic activity and supports more jobs in the community than a dollar spent at a chain. The primary reason is that local businesses buy more goods and services, like banking and accounting, from other local businesses.” She goes on to state, “A study in Grand Rapids, Mich., by the firm Civic Economics found that, if residents redirected 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.”

That’s pretty deep, isn’t it? Ms. Mitchell’s article says, “Studies have also found that cities that have lots of locally-owned businesses score better on a variety of measures of community well-being. They have lower poverty rates, greater civic participation, and more charitable giving. In addition, local businesses generally have a much smaller environmental impact and place less demand on public infrastructure and services than big-box stores.” Whoa…this is huge! Think about this for a minute and how it relates to Altadena. Wouldn’t it be great to have lower poverty rates, greater civic participation and more charitable giving here? Judging from the low response to our several attempts to raise funds for two local Altadena charities, I’d say so.

The thing is, we can all do something about this. We can shop local and keep our money local, where it counts the most. Most big-box stores have their headquarters in different states, or even out of the country. Staples is headquartered out of state, as is Office Max and WalMart. Target has good community programs going, I’ll give them that, but again, they’re headquartered out of state. Trader Joe’s? Headquartered in Germany. So you see, it’s really hard to find a retailer who is actually a resident of your community……or is it? Let’s see, according to Ms. Mitchell’s article, “Both anecdotal reports from business owners and empirical evidence indicate that (buy local) initiatives are having a significant impact on people’s choices.”

“In Bellingham, Wash., a market research firm found that nearly 60 percent of residents are patronizing locally-owned businesses more often thanks to a campaign that encourages people to “Think Local First”. The campaign was launched in 2003 by Sustainable Connections, a coalition of more than 500 locally-owned businesses. Normally, if 1 in 5 households claim familiarity with your program, and change their behavior because of it you would consider it a success”, said Dr. Pamela Jull of Applied Research Northwest. “To have nearly 3 in 5 households attributing a behavior change in this program shows an amazing impact”.

Let’s see how “buy local” programs have done in areas around the country. Says Ms. Mitchell, “Last year, thanks in large part to the work of Arizona Local First, an alliance of more than 900 independent businesses, the state passed a law outlawing subsidies for big-box stores and shopping centers in the Phoenix metro.”

“In New Mexico, the Santa Fe Independent Business and Community Alliance, a six-year-old coalition of more than 600 local businesses, helped advance a bill to close a tax loophole that gives chains, but not local businesses, a major break. Opposed by big business, the bill had stalled in committee for years. But that changed, said the bills’s sponsor, Rep. Peter Wirth, when independent business owners spoke up”.

“Local business alliances are also influencing how city officials think about economic development. The Austin (Texas) Independent Business Alliance, which has nearly 400 members, has run a highly visible campaign urging residents to “Celebrate their Independents” and “Break the Chain Habit”. The message has resonated with city officials, who have stepped up small business training programs, designated several “Independent Business Investment Zones” around the city, and decreed that a major downtown redevelopment project lease at least 30 percent of its retail space to locally-owned businesses. The developer ultimately rented 70 percent of the storefronts to locals”. Hello….think about what such an alliance would’ve meant to the hotly debated West Altadena shopping district! We are asleep at the wheel, people.

“With the national economy in trouble, local business alliances have become more crucial now than ever, not only in helping independent businesses survive, but in offering a path out of this mess and toward a more durable economic model in which business is once again firmly rooted in the community”.

I know this is getting long, but it’s something that needs to be said. If the current atmosphere prevails in Altadena, Webster’s, who has been serving our community for upwards of 84 years and on its way to becoming an historical landmark, will be history. The jobs that help support many local people would be gone, the property redeveloped into condos or the like, and the tax revenue we pay the County of Los Angeles would evaporate. All the support we and other businesses around the area give to local charities would be no more and Altadena will wither. Dire predictions, yes, but there’s much we can do about it. Webster’s Fine Stationers has taken that first step, by joining Buy Local Pasadena, http://www.buylocalpasadena.org/ and by writing this blog post. Also check out their recent blogpost here: http://buylocalpasadena.wordpress.com/ - there’s some relevant information to read. Join us in our fight to improve the quality of life in our community….shop local, buy local and help keep Altadena the amazingly beautiful and prosperous town it's always been!

12 comments:

Pamela said...

You sure did your research! Sorry to hear your store being empty was part of the impetus for your writing. Way to make good use of your time. Thanks for the leads on other sources of Buy Local research. I didn't know.

P. Jull

Unknown said...

Savant, I think it depends on your individual needs and what type of business you're planning to operate. Given the current scarcity of business loans, though, going virtual and doing your business from home might just be a viable option for you now. You can always "trade up" later, after establishing yourself.

Pamela, thanks. I'd been planning to write about this topic for a while now, but seeing the store empty did spur me on a bit. It's a very scary time to be operating a retail business, but I sincerely believe that if we keep the lines of communication with the public open, which was the real purpose of my post, we'll come through ok. I'd love to see more people reading this blog and having some meaningful back & forth diaglog about the topics.

I'll leave you with this thought....as President Obama said, if we don't release the clutch on the pursestrings, if we don't start spending again with our local retailers, the American way of life is in serious jeoprady.

Anonymous said...

Hi Lori,

I've long sung the "buy local" song. Thanks for some hard data supporting it.

Just as salary isn't everything in a job, price isn't everything in a store. It is a wonderful conveience to be able to drive just a few minutes or walk just a few blocks to get exactly what you need because the good local retailer is so well tuned in to the needs in the local community.

I admit that I'm not a regular customer of yours. No fault of yours, just that I'm definitely not the "Fine Stationary" type. The card store next door is about as fancy as I get.

But I patronize the Coffee Gallery more than I do Starbucks and Altadena Hardware more than OSH or Home Depot. I'd rather buy a sandwich at Park Bench, Foxes or Everest than at Jack In the Box or Quizmos.

It just makes sense!

An Altadenan

Unknown said...

Local businesses are the heart of our community, so I applaud your efforts whether you shop my store or any other independent....good for you!

writerphotodeb said...

I admit I haven't been in as much as I used to when all the stores were connected. I now go in for my prescriptions, and if I need a card, I get that. I wish all the stores weren't separated now because I know I'm missing out! I did buy a beautiful leather organizer a while back and was given, shock, real service! I'll be in soon!

Unknown said...

That's fabulous, Deb...we hope to see you soon!

Thanks for leaving such a nice comment. I, too, wish that the stores were still connected. I wish we could've found a cost and time-effective solution to this issue, but there didn't seem to be any other than having separate stores. Sometimes change is good, though, and being our own entity lets us concentrate more on great customer service.

Anonymous said...

While I LOVE having local Altadena stores (the few that we have), I have to make two comments. One, I have found that since your store(s) has been split into various fractions, it is much harder (actually frustrating) to shop there. I must go only to one department now, and am not free to browse the other sections. It is just too hard to walk in and out of the various doors - and why would I if I am there for a certain something? I did all the time before because it was easy. TWO, I am wondering what local products you carry in your store to support the community. I know of one or two, and it may not even be in "your" store now, as I am still confused over the division. Most of the items I see at Websters are quite national brands. Just something to ask yourself - how can you make your section of Websters reflect the local community and carry a product you can not get elsewhere? That would be such a big bonus!
All that being said - I have loved Webster's being there for us!

Unknown said...

Thanks for your comment....this actually lets me address this particular problem, which is fustrating to all of us whichever way you think about it.

While I appreciate your loving Webster's being in the Altadena community all these years, I'm wondering why you think it so difficult to walk into the doors of the "other" stores (other than the one you're in)? Almost every shop in the world is built that way....go in one shop, browse, go out the door and into another shop, browse, repeat process. I believe your way of thinking is the result of resistance to change, just as it is in so many others. Webster's, in its original incarnation was not all one interconnected store, it was a collection of little shops just as it is now. My father-in-law removed the walls between the stores only about 40 years ago, according to Scott, and the customers complained about that change, too.

I've spoken to lots of people about their feelings about what Bill has done and why. Their understanding increases when they realize it was do this or sell. The only interested parties were developers, who would likely tear Webster's down and build condos or apartments. One customer, just the day before yesterday, confided to me that she actually liked the change. You see, she's disabled and thought that the stairs were a complete nuisance and she likes having the stores separate. I remember hearing people complain all day long about the stairs when I worked in Customer Service 10 years ago. So you see, it's very hard to please all of the people all of the time. We did what we had to do to keep Webster's in the community...having you understand that and support us would be fabulous.

As for the local products we carry at Webster's Fine Stationers, I invite you in to check it out for yourself. We carry notecards made by local artists Donna Barnes-Roberts and Athena Meltzer. We carry jewelry hand made by Altadena artisans Jewels of the Earth by Diana, Ruthie Castro and Julie Lyn Thueson. We carry Beautiful Altadena license plate holders, custom Altadena wall decor and cards made by companies in the greater L.A. area. Our new line of beautiful photo albums, also custom, is from Terra Traditions also located in L.A. The wonderful cookies we sell are made nearby in Redondo Beach. As more product becomes available locally and it fits my product mix, I'll bring it in.

I'm sorry that you find shopping at the Webster's Shopping Complex confusing, especially since none of the stores moved. Everything is in the same place it's always been, there's just walls between the stores now. Perhaps if my father-in-law had explained is intentions to the public before he sold the stores, reaction to it wouldn't have been so negative. Perhaps if he had publicly given his blessing there wouldn't be such confusion and anger. I can't answer for his and the main store's lack of communication, but I can assure you that you'll always get the straight story from me....just keep reading our blog.

Thoughtfully Blended Hearts said...

Please include me in your "Amen" corner...supporting local businesses is such an important thing to our local economies. The trickle down effect of our country's economy is ruining so many of our small businesses, the small ones are the first to suffer and many of them die.
What a great article....
Becky

Unknown said...

Becky, thanks so much for your support and comment. It's folks like you that keep us going, and we appreciate it!

Anonymous said...

Very well said! And I agree, I think it's so very important to shop within your local community. People don't really realize that. I was one of the people.. I used to LOVE going into places like Pier One, Bombay or Williams Sonoma. But not any more. I still shop at Vons and will go to Starbucks (on the rare occasion), however, I make it a point to shop locally. This is where you live, why wouldn't you want to make your community stronger and flourish?

I love your store. I've been shopping at Webster's for years now and I think you've done a lovely job at re-inventing (so to speak) a store that was, well, quite dull to be exact. I also agree with you in regards to shops being built to go in one, browse, exit and then go in to the next. When did that become hard? I don't know, it's just a bit silly to me.

I wish you the best of luck and I can promise you that I will keep shopping at your store. It is by far one of Altadena's *gems*.

Unknown said...

Thank you so very much for your comment, we appreciate your sentiment!