SOUTH BEND — The push is on for a new type of local economic boost. Independently owned stores across St. Joseph County want shoppers to "think local" during "independents week."
The push is being organized by a newly formed group called "ShoLo," short for "shop locally." You may have seen the group's red and orange stickers adorning the doors of about 75 independently owned restaurants, stores and other shops and businesses across the area.
Many have been hit hard by the sinking economy, as they fight for market shares with bigger, sometimes less expensive corporately owned businesses. Now, they're asking for your help to fight back.
Kathy Reddy White's downtown South Bend CircaArt Gallery is filled with trinkets and treasures of every shape and size. Lately, her inventory has been piling up, as the sinking economy tugs at her profit margin.
"I barely squeak by as it is," she said. "Doing the arts in South Bend is tough anyway. And with this economy, I'm maintaining, but it's scary."
Still, lately, she's seen a new glimmer of hope. For her, there's no doubt where it's coming from.
"I was one of the first people to jump on board with ShoLo, because I thought it was a great idea," Reddy White said. "Ever since about Christmas time, things have been getting a little more stable. And I do attribute it directly to ShoLo, because of the exposure we all got. I can't attribute it to anything else."
It's become a familiar refrain for "independents" across the area.
As the economy slides, so do their sales, increasingly, toward their competition at bigger, corporately owned stores. It's a new position for some business owners like Mark McDonnell at South Bend's LaSalle Grill.
"Twenty years ago, 65% of all restaurants were independently owned. Now, that has flipped and it's 65% chain chain owned and 35% independent," said McDonnell, who also serves as vice president of the ShoLo organization. "Independent businesses from restaurants to local shops have been hammered over the last couple of decades by the big box stores."
Lately, things have only gotten worse.
"In this economy, we're just trying to get people in the door. And to prove to them that, wow, you're really missing something here," McDonnell said.
According to a recent study by the independent consulting firm Civic Economics, for every $100 spent at an independent business, $68 dollars returns back to the community through taxes, payroll and other expenditures. That same $100 spent in a national chain only yields a $43 community return, and money spent on online purchases generally yield almost no community return.
"If just half the employed U.S. population spent $50 each month in independently owned business, their purchases would generate more than $42.6 billion in revenue," said Cinda Baxter of the nationally recognized 3/50 Project. "Imagine the positive impact if even 3/4 of the employed population did that."
Local small business owners are doing more than just imagining.
This week, the push is on to drive the numbers separating independents from national chains even farther apart. Participating ShoLo businesses will offer special deals and incentives to customers simply for walking through their doors.
Many are also participating in what organizers call the "ShoLo Treasure Hunt," which gives shoppers pictures of unique items found only at ShoLo stores. Search for those items, and you'll be eligible to receive gift certificates from other member stores.
"It's sort of like a 'great race', where, if you shop there, you can pick up a little token and you'll be able to cash these in for some discounts and prizes at other retailers," McDonnell said.
The goal, he added, is simple.
"We want to get people in and show them what the difference is in quality, in service, in value. And hopefully, people do make the connection, spend a little money, and get the local economy going," McDonnell said.
Will shoppers bite? Some we spoke with said absolutely.
"I like both types of stores. I know what you can get at a brand name store. But I also like local stores, because they might have something new, or something different," said shopper Ellen Clodfelter.
Do the owners matter?
"Yeah, that matters," she replied. "Because they're the little guy. You don't want those mom and pop shops to go out of business."
Others said their support may come with conditions.
"I think [independent businesses] are important," agreed Natella Micola of South Bend. "[But price is important too,] absolutely."
It's one reason why shop owners like Reddy White say the "independents week" push is so important, and not just for her store.
"This is paramount to all of us being in business. ShoLo has just been a blessing for the whole community... and definitely for me," she said.
ShoLo organizers have plans to expand that blessing, including ideas ranging from fall savings spectaculars to a holiday gift card campaign.
They are ideas McDonnell says have already helped boost the local economies of cities like Grand Rapids and Holland, MI and Springfield, IL. The group's hope now is that what worked there can work here, too.
