New York University's independent student newspaper, established in 1973.

Washington Square News

New York University's independent student newspaper, established in 1973.

Washington Square News

New York University's independent student newspaper, established in 1973.

Washington Square News

Big box retail hurts small business

While watching the presidential debate this past Wednesday night, I noticed something interesting. No, it wasn’t Mitt Romney’s unwavering desire to kill and eat Big Bird for Thanksgiving, but rather both candidates’ emphasis on supporting small business to help the economy grow. This notion strikes close to home, as my mother has owned a private pharmacy in the suburbs of Westchester, N.Y. since 1998. My hometown of Armonk is full of mom-and-pop stores, creating a close-knit community where everyone knows each other.

Recently, an out-of-town property owner signed a lease with CVS, forcing out our only grocery store in the process. This will be the first big box retail store in Armonk and will change its character and charm forever. There are 22 CVS’s in a 10-mile radius of Armonk. I’m almost certain this breaks some sort of ethical law about having a particular number of miserable employees in a restricted space. Unfortunately, this is not only pertinent to my hometown, as it followed me when I moved to the city as well.

Being a newcomer to the Upper East Side, I was surprised to see so many chain stores everywhere I looked. In fact, every time I walked to the subway on 86th Street, I was reminded that there is a Duane Reade on both York and First avenues. It is a good thing there are two of the same store just one block away from each other because that is completely practical and an effective use of space.

Big box retail stores have a malevolent business model aimed at obliterating their competition. They lure you in with category killers, meaning they drop the price of certain products lower than a nearby independent store could afford to sell the item. Their plan is that once a customer is shopping he or she will buy other items that are not so cheap without realizing it. Customers think a large chain is competitive on everything when, in reality, independents have certain products that are cheaper. And they do have everything. Drug stores have become grocery stores, hardware stores, pet stores, card stores, toy stores, frame stores and more. One-stop shopping.

Independents cannot afford to stay in business anymore, leaving vacancies that no other independents want to fill and rolling out the red carpet for other chain stores to compete to set up shop.

Small, local businesses also give back to the community. They support Little League teams, town libraries and local events. Big box retail stores send their profits back to their headquarters hundreds of miles away. A former supervisor asked a neighboring CVS to donate to the local art show — a big annual event in town — to which CVS declined. When the small stores get hurt, who will support the community? Brad and Angelina?

We as consumers need to become educated as to where our money is going. As both presidential candidates realize, thriving local businesses create more jobs and help spur a thriving economy. According to the U.S. Small Business Administration, small businesses are responsible for 65 percent of new jobs created over the last 17 years. These privately owned businesses are vital for a town’s character and once that is taken away, it can never be restored.

So the next time you are out shopping, whether it is for a pack of gum or a big-screen television, you have a responsibility to ask yourself in whose pockets your money is winding up.

A version of this article appeared in the Tuesday, Oct. 9 print edition. Brandon Jacobi is a contributing columnist. Email him at [email protected]

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  • K

    kamilarsonOct 22, 2012 at 3:07 pm

    With this economy it still is important for the small business to give that personal attention that we all like. You are so right about finding the right place to fit your needs and help you with whatever you want.
    http://www.smartcarpet.com/site/carpet/

    Reply
  • V

    VincenzoOct 21, 2012 at 3:09 pm

    Very bias piece. How about the “ethics” of overcharging your customers 150%? I think the big concern for Brandon is CVS will come in with lower prices and completely wipe out the most expensive drug store in Westchester.

    Go capitalism.

    Reply
  • C

    Cole GregoryOct 9, 2012 at 9:02 pm

    Thank you for educating me on an important national issue impacting your town. You inspired me to research the issue and I found this great American Express study http://about.americanexpress.com/news/pr/2011/sbre.aspx.

    Reply