Thursday, January 3, 2008

Chain Store Talk--The Conclusion

I know I never did finish my ranting over the proposed chain store ordinance/ban. So here are the final points I'd like to address.

Chains can pay higher rents. An influx of chains will increase rents throughout the city and push independents out.

I'd say this is true. But the larger premise is business in downtown would be better so the independents could afford to keep up.

This is where the ordinance bugs me a bit. It seems to creep into a pseudo rent control/subsidy arrangement.

To me this smacks of over regulation.

•Independents give back more to the community in various charitable ways. A perfect example is our three local banks who contribute heavily to the community.

I'm not entirely sure this is true. I know one of the Maine report supposedly addressed this but the figures presented were a bit misleading.

The report stated that locals donated $4,000 per million dollars of sales while Wal-Mart donated $1,000 per million dollars per sales. But if the Big Box stores--which once again we should point out will never be placed in the zone the ordinance designates for protection--make more money than the locals, don't they contribute more to charity?

As for the banks, our banks are extraordinarily charitable. But it's my understanding at least some of it is compulsory. Investing in the community is part of the cost of business of being a bank.

Someone please correct me on this last point if I'm wrong or provide more detail if you can.

•Tourists come here for our waterfront and our specialty shops and restaurants. If they want to shop at chain stores, they can go to their local indoor mall. Why drive to Newburyport?

This is a bit Yogi Berra-ish to me. This suggests no one will shop in Newburyport if we have chain stores. Well, then why would the chain stores come here?

And if they do come here and business drops off then logic dictates they'll leave. That in turn would open space back up for independents.

I honestly don't think any chain is going to carry a losing store just to keep the Newburyport market locked up. We're not that big.

•Chains have the corporate backing to heavily advertise and offer hefty discounts that independents cannot afford – again pushing them out.

And independents have the ability to be nimble and provide goods and services that chains don't carry. Peek into the Dragon's Nest sometime. I defy you to find most of that merchandise in a Toys-R-US or Target.

•And yes, chains will change the character of Newburyport, just as aluminum siding would on a house in the middle of Fruit Street.

I disagree.

First, what character are we trying to protect? I'm told that prior to urban renewal you could find Woolworth's, Kresge's and JJ Newberry's on Pleasant Street. All were chain stores.

It's seems ironic that we're bent on protecting the character that was artificially created by the renewal of the downtown. Yet that may not be as historic as we think.

Anyway, if we want to preserve the character and look of our downtown. I think there are better ways of doing it.

Number one on my list would be a far-ranging historic district, something with teeth that really directed what types of buildings could be built in the downtown, and how they should look.

Then, I'm willing to let the buildings owners figure out who gets to run the stories. Those chains that do choose to do business downtown will understand this isn't Danvers, Newington or Kittery.

1 comment:

Ray said...

I think the issues raised by the opposition support the notion that most anti-chain-store, anti-new-technology, anti-free-trade arguments ignore long term effects.

Chain Stores do represent a challenge to local business communities. But that challenge is not magical. It's simple value and marketing.

The chain stores raise the level of value expected by the consumers, but that value is spread, peanut-butter fashion, over their whole customer base. The chains cannot respond to local preferences as well as independents.

If one argues that the independents cannot match the value of a chain store, then it seems a bit selfish to me to keep that value from the consumers in Newburyport. It's a long term loser anyway since people have cars and will travel for value.

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