I have witnessed the rebirth of the downtown Saint Louis business district, with great excitement. In economic development trends, I have seen in my city and in other cities, the departure of retail and restaurant businesses with the departure of population. This is due to the fact that chains, franchises and “company” stores adhere to strict age and socioeconomic demographic guidelines. They must have a certain population density and the “right” population. This tends to create a cookie cutter population and cookie cutter business district. What I have noticed recently, in Saint Louis, is that with the movement of population back to the city, the pioneer retail and eatery establishments tends to favor the mom and pop. This, I think, is good thing and something to celebrate.
The problem is that as population continues to increase in the CBD, larger chains and big-box stores start to eye the market with envy. As the big boxes and chains move in (paying their minimum wages), they supplant the pioneer mom and pops (who generally pay living wages). As the cookie cutter business district begins to expand and take-over, the population becomes cookie cutter along with the bland offerings of the chains and big boxes. These larger corporate stores often are the beneficiaries of large, politically motivated, civic subsidies. With these subsidies, they are able to operate cheaper (plus pay lower wages) thereby driving out the pioneer competition. A point in case, in Saint Louis, would be the return of Schnuck's to the CBD.
Schnuck’s, branding themselves as The Culinaria, was a welcome addition to downtown—as a grocer. However, instead of operating a grocery store, Schnuck’s (the beneficiary of public money) opened a “food court” with a grocery store attached. First they were in direct competition with the only other grocer downtown, City Grocers. Then they became the competition of every independent eatery downtown with the expansive food court. I admit, at first I thought this was great. Buy my groceries and have lunch or dinner. Then I started noticing that several of my favorite independent, downtown eateries were closing. I made a point to talk with some of the business owners who were still open and discovered that Schnuck’s essentially copied their menu and menus of other eateries and made them available in their tax-subsidized food court. Now, my tax dollars were helping to drive my favorite restaurants out of business, to be replaced by a food court. Those independent owners with whom I spoke, did not receive any tax payer subsidy, and yet they had come into a new market and risked their own capital to create something unique of me and our downtown residents and visitors. Diversity is now being threatened.
I have long said that our public servants need to wake up and smell the independently brewed coffee of reality. If we keep trying to persuade large chains and big boxes to our downtown via public subsidy, we will destroy the vibrancy of what has been built with sweat and private capital. It is proven, that if we experience another population shift, those same, tax subsidized big boxes, will move off to another city or ‘burb and leave large empty shells on city blocks and holes in our city’s business services fabric. What’s next? Barnes and Noble downtown to compete with Left Bank Books using tax payer funds? Olive Garden to compete with Gitto’s? And using my tax dollars to do so? Not on my watch!
I believe we need to support our independent, home-grown businesses which offer much greater economic empowerment to their employees and tend to stay around when others leave due to demographic shifts.
My commitment: I will use the Culinaria as a grocery store, but not as a restaurant. Will you join me in persuading Schnuck’s and our public servants to support independent businesses? I am committed to watching every TIF or other form of public financing to make sure that independent business owners have equal access to public support.
Goliath—stay in the ‘burbs.
Tell me what you think.
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