Going local
Toolbox
Published: December 9, 2008
At a time of economic hardship, money is on people's mind, but a story in the Sunday Herald described the ways that value is not measured only in dollars.
Those forced to pinch pennies because they have lost a job or encountered other difficulties may do their shopping at the outlets where the price tag is the lowest. But an organization called Local First Vermont is pointing out that the lowest price often has a hidden cost.
Local First Vermont is a group that is encouraging Vermonters to buy from locally owned, independent businesses. It hopes to do for retail businesses what the localvore movement is trying to do for food producers: channel local dollars in a way that strengthens communities and provides better value to shoppers.
They cite a 2002 study showing that for every $100 spent at a national chain store, only $13 stays in the community. The rest goes off to national headquarters. For every $100 spent at an independent store, $45 stays in the community.
Money in the community pays for supplies, services and salaries. Locally owned businesses also demand less in the way of costly municipal services than big box stores and contribute more to community organizations. Because they have a stake in the community, they are also more sensitive to environmental costs.
The efficiencies of scale and technology perfected by companies such as Walmart or amazon.com allow global businesses to reach into small communities with prices that undermine local businesses. The Walmart effect is well-known. In towns across America, locally owned retail stores have been driven out of business, hollowing out Main Streets and driving down wages. Shoppers benefit from lower prices, but they suffer by having to drive greater distances to stores on the edge of town and by the ghostly, impoverished feel of their hometowns.
People who work at or shop at Walmart are not villains. Such stores provide salaries for workers and bargains for shoppers. But as big box stores spread, we are paying a price. Vermonters, more than others, enjoy the satisfaction of knowing and being known by local store owners, whether they are buying books, hardware, food, clothing, fabric, or sporting goods. Local ownership helps keep communities vibrant.
Buying local is a sort of chicken-and-egg problem. It is hard to choose more expensive merchandise if you don't have enough money. But it is hard to prosper in a town where large chains suck the wealth to distant places. Where people have a choice, they ought to keep in mind that buying at the farmer's market or the local store is an investment in one's community that has a payback benefiting everyone.
So pay attention to the maple leaf logo on the sticker in the windows of locally owned stores. Seek out the distinctive stores that offer a personal touch while remaining invested in the community. It may cost a little more, but we're all a little richer for it.
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