Big Stores Equal Big Ouch
By Marika O'Hara
Do you have a favorite restaurant where the waiters all know your name? Do you have a favorite little store where you always go to shop? All businesses like this are in danger of being put out of business by big chain stores like Wal-Mart and McDonalds, even though these chain stores are worse for the economy than locally owned businesses. Local businesses support the economy of the community they are in, as well as supporting the people who own and work at them, while chain stores are actually hurting the economy. And yet, these chains are putting local businesses out of business every day.
Local businesses are owned by people who live, work, and dwell in the community they sell to. Local businesses actually generate two to three times more economic activity than a big chain store. Big chain stores that have many locations all over the country and even the world are controlled by a central headquarters that could be anywhere and have no connection to the community of the actual location where each store is. Many chain stores end up leaving and moving to a new location, leaving behind big empty buildings. The biggest chain stores leave behind buildings or lots that are too big or unsuitable to any kind of business except its competitors, who the company won’t sell that space to. Then, towns are left with big empty buildings that are bad for its economy.
In Harlem, New York, there was a study done on what the impact would be if a Wal-Mart moved into a vacant lot at West 125th Street and Lenox Avenue. The study predicted that 30 to 41 fresh food retailers in the area could go out of business, causing the city to lose approximately 110,300 to 126,300 square feet of fresh food retail space. That would get rid of 50 to 57 percent of the fresh food retail space added across the city by the Food Retail Expansion to Support Health (FRESH), which spent 4.2 million to 4.8 million dollars of public financing money creating the space.
The reason that many people shop at chain stores is because they have low, affordable prices. This allows stores like Wal-Mart to get a monopoly on the market and put other stores out of business. Many chain stores (and Wal-Mart particularly) do not treat their employees well with good pay and benefits. This allows chain stores to save money on salaries and lowers their prices. For someone living solely on the wages from a job Wal-Mart, their income puts them below the poverty level. Chain stores are also able to buy products in bulk from suppliers because they are large and can stock so much at a time. Supplier companies offer discounts to companies that buy large quantities of products at a time. This helps chain stores lower their prices even more, making them seem even more appealing to potential customers. Small businesses need to be able to pay good wages to their employees and to support the owners, making them unable to offer the ridiculously low prices some businesses advertise. Small businesses must also pay mortgage or rent on their location that they often do not own, which racks up more cost.
For many years, many people have made their living by running stores, restaurants, or companies that offer services. Now, for them, it is harder to support their families and themselves while struggling to stay in business. The biggest threats to small businesses are superstores like Wal-Mart, Target, or Costco. And while restaurants are put out of businesses by fast food places like Wendy’s or McDonalds, they are also threatened by restaurant chains like Outback, P.F. Chang’s, or Panera Bread.
Studies have shown that for every $1 million spent at a local business, $900,000 is generated for the local economy and fifteen jobs are supported. But for every $1 million spent at a chain business, only $600,000 is generated for the economy and only 10 jobs are supported. This means that besides supporting the owners and workers, people who shop at local businesses are also supporting the economy, which many people are of the opinion, could use all the help it can get.
Mayors and leaders of towns and cities should go against having new chain stores built up and put the money and energy into supporting the local businesses that make the towns economy thrive. The people in communities should learn about how these local businesses help them and then help their own economy by visiting local businesses and supporting them.
I want to see more of those local businesses when I drive through my town. I don’t want to see those diners where the waiters recognize you and stop by your table to talk closing. I want to see other people wanting this too. However convenient the drive-thru at Wendy’s may be, I want people to realize what a difference going to an independent business can make, and not just for themselves. It may be too late to save those family-owned pharmacies that my parents have told me about, with the counter where you can order soda and food, but it’s not too late to save many other businesses and the lives of the people who own them.
Local stores and restaurants support the economy while big chains don’t. But these small businesses are currently put in danger by big stores like Wal-Mart. Customers should support local businesses because they help the economy of the place the customers live in, even if chain stores claim to offer lower prices. So the power is with you to save that restaurant you love or the store with the best vintage clothes. Get out there and save some local businesses while support your economy!
Local businesses are owned by people who live, work, and dwell in the community they sell to. Local businesses actually generate two to three times more economic activity than a big chain store. Big chain stores that have many locations all over the country and even the world are controlled by a central headquarters that could be anywhere and have no connection to the community of the actual location where each store is. Many chain stores end up leaving and moving to a new location, leaving behind big empty buildings. The biggest chain stores leave behind buildings or lots that are too big or unsuitable to any kind of business except its competitors, who the company won’t sell that space to. Then, towns are left with big empty buildings that are bad for its economy.
In Harlem, New York, there was a study done on what the impact would be if a Wal-Mart moved into a vacant lot at West 125th Street and Lenox Avenue. The study predicted that 30 to 41 fresh food retailers in the area could go out of business, causing the city to lose approximately 110,300 to 126,300 square feet of fresh food retail space. That would get rid of 50 to 57 percent of the fresh food retail space added across the city by the Food Retail Expansion to Support Health (FRESH), which spent 4.2 million to 4.8 million dollars of public financing money creating the space.
The reason that many people shop at chain stores is because they have low, affordable prices. This allows stores like Wal-Mart to get a monopoly on the market and put other stores out of business. Many chain stores (and Wal-Mart particularly) do not treat their employees well with good pay and benefits. This allows chain stores to save money on salaries and lowers their prices. For someone living solely on the wages from a job Wal-Mart, their income puts them below the poverty level. Chain stores are also able to buy products in bulk from suppliers because they are large and can stock so much at a time. Supplier companies offer discounts to companies that buy large quantities of products at a time. This helps chain stores lower their prices even more, making them seem even more appealing to potential customers. Small businesses need to be able to pay good wages to their employees and to support the owners, making them unable to offer the ridiculously low prices some businesses advertise. Small businesses must also pay mortgage or rent on their location that they often do not own, which racks up more cost.
For many years, many people have made their living by running stores, restaurants, or companies that offer services. Now, for them, it is harder to support their families and themselves while struggling to stay in business. The biggest threats to small businesses are superstores like Wal-Mart, Target, or Costco. And while restaurants are put out of businesses by fast food places like Wendy’s or McDonalds, they are also threatened by restaurant chains like Outback, P.F. Chang’s, or Panera Bread.
Studies have shown that for every $1 million spent at a local business, $900,000 is generated for the local economy and fifteen jobs are supported. But for every $1 million spent at a chain business, only $600,000 is generated for the economy and only 10 jobs are supported. This means that besides supporting the owners and workers, people who shop at local businesses are also supporting the economy, which many people are of the opinion, could use all the help it can get.
Mayors and leaders of towns and cities should go against having new chain stores built up and put the money and energy into supporting the local businesses that make the towns economy thrive. The people in communities should learn about how these local businesses help them and then help their own economy by visiting local businesses and supporting them.
I want to see more of those local businesses when I drive through my town. I don’t want to see those diners where the waiters recognize you and stop by your table to talk closing. I want to see other people wanting this too. However convenient the drive-thru at Wendy’s may be, I want people to realize what a difference going to an independent business can make, and not just for themselves. It may be too late to save those family-owned pharmacies that my parents have told me about, with the counter where you can order soda and food, but it’s not too late to save many other businesses and the lives of the people who own them.
Local stores and restaurants support the economy while big chains don’t. But these small businesses are currently put in danger by big stores like Wal-Mart. Customers should support local businesses because they help the economy of the place the customers live in, even if chain stores claim to offer lower prices. So the power is with you to save that restaurant you love or the store with the best vintage clothes. Get out there and save some local businesses while support your economy!