Big-box stores such as Walmart and Target always garner a lot of attention and excitement when they move into a community. It's undoubtedly warranted as the companies offer consumers a large variety of goods at competitive prices.
Nonetheless, there is a price to be paid to invite big-box stores into a community. It's a price that local business owners notably feel in their balance sheets. The fact is mom-and-pop shops can't compete with them. It's impossible for them to match big-box store prices because they don't have the demand or cash flow to place as big of orders on products as a Walmart.
To put it into layman's terms, the Walmarts of the world barter prices with companies to get televisions and other products at lower prices because they put in such massive orders. In addition, there have been reports that massive stores are so important to various companies that they are consulted when building the product. That's right, a company like Walmart has the power to tell a gardening business to use plastic instead of metal in order to keep the costs low.
An average store, however, tends to have no leverage in the negotiation because they are offered a take it or leave it price.
There is the argument of survival of the fittest in business. It's undoubtedly the life blood of a capitalistic society. As harsh as it may sound, some stores deserve to be in the red because they don't advertise, hire capable employees and work hard to engage the community.
However, it's one thing for two local stores to compete and it's another thing for a local store to compete with a big-box store. It's simply not a fair fight at all.
That being said, here's a look at seven reasons why shopping locally is vital to the well-being of a small city.
1. Keeping a community unique: Several smaller communities have one-of-a-kind businesses that they hang their hat on. The unique stores help with tourism and are a part of a city's identity.
2. Investing in the community: Local businesses are more likely to invest in the community through charitable organizations and various local events. They do so because they live in the community and want to see it prosper in as many ways as possible.
3. Better service: Let's face it, the big-box stores very rarely offer quality service. It's pretty much pointless to ask someone for help because either he/she won't know or won't have accurate information. Locally owned businesses on the other hand, tend to have above-average service. The local stores that don't have good service usually go out of business.
4. Better jobs: As a rule, the employees at big-box stores, besides the general manager of course, tend to make around the minimum-wage mark. In addition, there's little room for notable promotions. Most employees at local business aren't exactly getting rich, but they tend to have more opportunity and slightly higher wages.
5. Entrepreneurship: A community built on local businesses promotes and gives opportunity for entrepreneurship. But at the other end of the spectrum, a city built on big-box stores has little opportunity for start-up businesses. It's nearly impossible to successfully start up a small or medium-size store with a company such as Walmart down the road.
6. Economy: Since most big-box stores are American-owned companies, their profits go south of the border. Local companies' earnings tend to be put back into Canada's economy.
7. Local-decision making: A city built on local companies ensures that people who truly care about the community have a major say on impactful decisions.
KF
