Buy Local Campaigns worked this Christmas, says new study.
It’s easy to get cynical about “buy local” campaigns when you compare the traffic at Main Street shops with the parking lot at Wal-Mart.
Is Buy Local any more effective a slogan than Nancy Reagan’s “Just Say No”?
A new survey just says yes. The study, put out by a coalition of business groups, shows that the little guys actually outperformed the big guys this Christmas season. And further, that Buy Local campaigns made a difference.
Holiday sales for independent retailers were up an average of 2.2% while overall retail sales were down 0.3% in December and up 1.8% in November.
And those retailers in cities with Buy Local campaigns did even better. “Independent retailers in these cities reported an average increase in holiday sales of 3.0%, compared to 1.0% for those in cities without an active Buy Local initiative,” according to the study.
“This survey adds to the growing body of evidence that people are increasingly bypassing big business in favor of local entrepreneurs,” said Stacy Mitchell, senior researcher with the Institute for Local Self-Reliance. “Amid the worst downturn in more than 60 years, independent businesses are managing to succeed by emphasizing their community roots and local ownership.”
Ethics vs Pocketbook
But this report has a troubling finding. It suggests that people bought local primarily for ethical reasons — because they want to help their community — rather than for price and quality of products and services or convenience of shopping.
Nearly 80% of those surveyed said public awareness of the value of choosing locally owned businesses had increased in the last year (16% said it had stayed the same).
A small movement can get going by do-gooders. And the Buy Local movement has made progress so far by largely appealing to civic pride.
But doesn’t it take real issues of self-interest for a movement to get big?
Won’t it take local retailers offering a better combination of price-quality-convenience to start to gain real traction over chains?
Boutiques, Not Hardware
As long as local retailers sell mostly home decor, women’s fashions, and other stuff you might want but don’t necessarily need, as they do in downtown Staunton, then there will be a need for others to provide food, appliances, hardware, and other staples. And today, that’s mostly done by chain retailers.
Of course, for local stores to start selling staples, there has to be a consumer market for the higher prices and smaller selection that local retailers would have to offer. Right now, with plenty of free parking at the mall and cheap gas to get there, there’s not much of a market for selling necessities downtown. So it’s a chicken-and-egg problem.
But once peak oil kicks in and energy prices begin to rise, then having stores nearby will become more important. That’s when buying local becomes a real pocketbook issue for shoppers.
(Full disclosure: I sit on the board of a group that regularly runs Buy Local campaigns, the Staunton Downtown Development Association. I’m sometimes skeptical, but I want them to succeed.)
