Shop Local for the Holidays

With the holiday shopping season getting into full swing, local businesses are encouraging people to buy from local businesses. Local independent retailers have several distinct advantages over national big box competitors.

These stores have many connections to the community. Local entrepreneurs can use those "roots" in the community in ways that the national stores cannot. To successfully leverage the hometown advantage, businesses need to show authentic concern for the community. In Rocky River and the surrounding area, as in many other communities, business owners serve as community leaders in a variety of capacities. “Living and working in the same community is one of the best benefits I have”, according to Paul Gorton, owner of Ford’s Clothier in Rocky River.

The economic argument for why customers should shop locally is simple. Spending at local businesses helps the local economy by providing jobs. Local entrepreneurs also tend to buy from local suppliers and use local professional services such as attorneys and accountants. Studies show that for every $100 spent in locally owned independent stores, $68 returns to the community through taxes, payroll and other expenditures. In comparison, the same amount spent in a national chain store returns only $43 to the community.

The national trend is toward more local shopping. In communities where more hometown shopping is done, there are more economic benefits to be enjoyed,  including higher real estate values.

 “Local businesses make a community strong and unique”, according to Catherine Jones, owner of Fiori della Vita, a flower shop in Rocky River. “Driving through the downtown of every small town in America tells the story of that town.  A vibrant and active retail area means the community is healthy and growing.” 

Local Benefits

Shoppers often choose to buy local because of the intangible benefits their spending can bring to the area. Improved local shopping choices, stores with local character, and salespeople and owners who know their names are all reasons why some consumers keep their spending local.

 “My customers come to me because I know them, their families and friends. I can meet their needs and exceed their expectations.  Local businesses are connected to their customers and community in a very personal way”, Jones said.

Social media is also credited with helping buy-local efforts. Smaller businesses now have a less expensive way to market themselves and, more important, to develop relationships with their customers. Firms that have active social media campaigns have higher sales, especially among younger customers.

Giving customers incentives to shop locally on a specific day can help drive sales. American Express has sponsored a national "Shop Small Day" on the Saturday following Black Friday since 2010.

The main reason consumers state for not doing more local shopping is price. It is sometimes difficult for local stores to compete with the larger box stores that buy in volume. “It is challenging to compete with the big warehouse stores and supermarkets that offer discount flowers every day”, Jones said.

On the other hand, many small businesses offer products in niche markets where price is not as much of an issue. Jones said she brings in fresh flowers daily from The Netherlands and buys from greenhouses in the area.

Just because an enterprise is local does not mean it is providing good personal service. It is critical for local businesses to provide additional personal touches that are not typically delivered by national firms.

According to Gorton, “There are many benefits for customers to shop local, but probably the number one benefit for me as a small independent retailer is that I can be flexible and considerate toward my customers.  Customers will receive the best customer service available because I really do care if they come back time and time again.” 

Finally, it is important for local entrepreneurs to buy from other local businesses. Local businesses can generate some discussion by purchasing locally and featuring their local buying habits in their marketing. This can be a powerful tool to attract shop-local-oriented consumers, giving them another reason to visit a business. It also lets small businesses support each other directly and helps build new relationships for marketing.