An article I read on a U.K. newspaper site yesterday reinforced something that’s been bugging the heck out of me the past several months. Recognizing the importance of protecting local cash flow, city leaders in Grantham decided to take up the banner of independent retailers-—the very people responsible for maintaining those coffers.
Helping launch “Get it in Grantham”-—the first of three buy local programs, to be followed in nearby Bourne and Stamford-—Paul Carpenter (Deputy Leader, South Kesteven District Council) explains, “The whole point is to ensure we keep a buoyant local economy.”
Which is exactly my point. Given how much of a community’s tax base relies on property taxes generated by local business, and how much revenue is derived from employer/employee income tax, why aren’t a plethora of U.S. city leaders doing the same?
Independent retailers don’t have the deep pockets of multi-outlet chains and franchises. They can’t offset losses by spreading layoffs across 200 locations or by closing a five locations to prop up twenty-two. Their financial wiggle room is typically restricted to one location, one set of employees…and one local economy. Theirs.
One might argue that a single store with eight employees doesn’t merit city help. After all, that’s only eight people, right? Wrong. Take a walk down Main Street in any number of communities and try to imagine half those businesses gone. Half. That’s one of several predictions being bandied about regarding potential independent store closures in the next twelve months. Even if that’s twice what reality produces, crunch the numbers. How many of those local economies can weather a 25% drop in revenue? Not many.
Sure, neighborhood retailers can band together, forming a buy local “pod,” then scrape up enough money to attempt small scale promotion out of their own pockets. It can be, and has been, successfully done.
It’s quite something else, however, when city leaders get behind the concept, helping promote local stores through their own political clout, media contacts, and public visibility. By doing so, they improve the odds those tax payers will be around come 1Q 2010.
Ben Newcombe-Jones, part owner of HH Cox (the oldest independent retailer in town), reminds us that success at the grass roots level can foster additional growth.
”This will not only support businesses already here but new businesses will open. Having a good mix of independent retailers and high street businesses gives a town a good character.”
And a bigger tax base. C’mon, city leaders. Time to roll up the sleeves and start rebuilding your business disctrict…from the ground up.
Photo credit: Grantham Journal, U.K.
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I can’t agree more with this article. My store is address is 266 N. Main St; in the heart of my local downtown. I opened the store on this depressed, sleepy little Main St thinking and hoping that my local town gov’t would support my efforts and a select few in growing the downtown. Instead, focus has been on entertaining bigger companies to settle in an industrial park via TIFs. One year ago, a lifestlye mall was completed 3 miles from downtown, with promise to connect the downtown shopping area to the mall, but nothing to date has been done. One of the anchor stores has since closed and there are 6 stores still left to be rented. My opinion, but the local leaders have checked out of this town. Something needs to be done to engage our town leaders to understand how important small, local business is to the community.