Trends In Support Of Locally Owned Businesses-Campaigns for SLOB (Support Locally Owned Businesses) seem to be growing. Arizona is the latest example.

Come on, be a SLOB (Support Locally Owned Businesses). Put your money where your house is.

These are themes being tossed around by a group of Valley business owners who, following the lead of Boulder, Colo., and Austin, want to persuade residents to shop at local businesses instead of national chains.

Alia Beard Rau
The Arizona Republic

"People move out here, and they are not aware of who we are and where we are, so they shop the chains," said Kimber Lanning, organizer and owner of Stinkweeds, an alternative Tempe record store that has catered to the college crowds for more than a decade.

The group, called Arizona Chain Reaction, met for the first time last week to discuss how they should be organized and the best way to get their message out.

Boulder and Austin were cited as cities with successful shop-local campaigns. Austin is littered with bumper stickers, T-shirts and hats that read, "Keep Austin weird," to promote shopping locally. Boulder has the theme, "Put your money where your house is."

Austin folks say these campaigns are a great success, but one Arizona State University expert said cheap and lazy consumers won’t trade convenience and price for local loyalty.

"All over the country people are tiring of sameness and are longing to make their city unique," said Steve Bercu, owner of BookPeople bookstore and one of the founders of the Austin Independent Business Alliance.

He said his group organized two years ago and kicked off their "Keep Austin weird" campaign last fall.

"We were tired of the constant erosion of local, unique businesses," he said.

Bercu said an economic impact analysis commissioned by Austin businesses determined this year that spending money in local stores benefits the community more than spending it in national stores.

"If you spend $100 at BookPeople, about $45 stays in the community," he said. "If you spend $100 at Borders, $13 stays in the community," he said. "That is pretty dramatic, and people have decided it was worth the extra effort."

Bercu said that although national chains have reported a loss in revenue during a tough economy over the past six months, many local Austin businesses are holding steady or gaining new customers.

Guarding the business

Lanning, along with Monti’s restaurant owner Michael Monti and Changing Hands bookstore Event Director Cindy Dach, invited 140 Valley businesses to the first informational meeting last Thursday. About 15 businesses from Glendale to Chandler were represented.

"I have to take steps to guard my business against the pressure of the chains," Monti said. "We want to be a proud group of local business people who bring the benefits of what we offer to the community we are part of."

Group members admitted they often can’t compete with chain prices, but they can offer better service, unique atmospheres and community investment.

"We want to encourage people to do something that makes their lives better," said Gail Shanks, owner of Changing Hands, which moved out of downtown Tempe to a south Tempe neighborhood when Borders opened downtown.

The group is working on a catchy slogan to let residents know which businesses are local, pooling resources to get advertising deals and sway politicians, putting out a directory of local businesses and hosting joint promotional events.

During the first meeting, Lanning handed out window signs that thank customers for shopping locally.

Tom Rex, research manager for ASU’s Center for Business Research, said the organization is a nice idea that’s unlikely to succeed.

"I doubt such a campaign would have much effect unless it’s a case of shopping a local store that is as convenient and has the same prices as a national chain," he said.

He predicted chains will continue to dwarf the mom-and-pop businesses, especially in areas like home improvement, bookstores and grocery stores, simply because they can offer a lower price.

And Rex said shopping locally won’t bring that much more money into the Valley.

"Even the local businesses already have to buy most of their goods from somewhere else, so the bulk of the money will leave the local community anyway," he said.

Boulder Book Store owner David Bolduc, who leads the Boulder group, says he’s not sure the shop-local concept will work in an area as large as the Valley.

"It works the best in a community where people take pride in the qualities of that community, including diversity and character," he said. "We raised the bar on local being an important trademark."

Don Weissmueller, owner of the Valley’s Keegan’s Grill, attended the first Arizona Chain Reaction meeting.

He said he’s not interested in cross promotions and is concerned about the group finding a focus, but he loves the idea of a universal slogan.

"This country wouldn’t survive without small business," he said.

Working together

The city Chambers of Commerce are advocates for both local and chain businesses. Eric Emmert, vice president of public affairs for the Tempe Chamber, said many of the national chains are active within the local communities. Carlos O’Briens, Denny’s and Burger King participate in the Tempe Chamber.

"I would hope that all businesses would work together for the benefit of everyone in a more cooperative approach," he said.

Although this would be the first organized Arizona local business alliance, the Arizona Commerce Department is creating a Web site that will promote local product suppliers. It won’t include retail businesses.

http://www.azcentral.com/arizonarepublic/news/articles/0403chainreact03.html