Incentives to Rent to Independent Businesses? What a Concept.
SFLOMA has been asking the city to consider incentives for commercial landlords who rent - at below-market rates - to independent retailers and food establishments. As it turns out, we're not the only ones. Read this from Ames, Iowa - the link to the full story is below.
A recent study of the home improvement/hardware retail market found yet again that shopping with independents provides a quantifable economic value. The conclusion is below, followed by a link to the study.
In the highly competitive businesses of hardware, outdoor power equipment, and building materials, independent retailers provide a compelling value proposition to consumers while creating significantly enhanced local economic activity compared to national chains.
In the hypothetical home improvement project reviewed here, our homeowner would have spent comparable amounts whether with the biggest chains or the smallest independents. But of that spending, 37% more would remain in her community. Excluding contracted installation services, that local economic advantage is nearly double, 97%.
That money improves job prospects for her neighbors. It ends up in other local businesses, in parks, and in collection plates in her hometown. It helps an independent, entrepreneurial local contractor make ends meet in an evolving and competitive business.
How might that knowledge help consumers and businesses change their shopping habits? Consider the following:
Together, the two largest national home center chains sold more than $114 billion in goods in 2013 (excluding installation services).
If just 10% of that business gone instead to independents, hometowns around the country would enjoy the benefits of an additional $1.3 billion in economic activity.
That kind of money turns home improvement into hometown improvement.