CHESTERMERE – Just a week ago Mayor Patricia Matthews spoke at the Chestermere Chamber of Commerce Breakfast of how the Town is promoting an “Open For Business” approach to attracting new businesses and maintaining the existing businesses in Chestermere. In the same week we hear of The Bargain Shop, perhaps better known as the TBS, will be closing its doors in the near future. Sources say that there will be 64 of its 231 general merchandise stores in the chain to be taken out of service and Chestermere was one of the stores on the “Hit List”. This means the 7 staff will be looking for new employment.
The Bargain Shop has 40 locations in Alberta and other outlets across Canada under “The Bargain! Shop”, “Red Apple” and “mymark” banners.
In a February 27th, 2013 press release the Court granted The Bargain Shop protection under the CCAA for an initial period expiring on March 28, 2013, which could extended while it restructures its business and financial affairs.
The Bargain Shop originated as the Canadian division of the Woolworth’s retail chain, which started doing business in Canada in the 1920’s. Woolworth became a local institution in many cities and towns across the country. In the late 1990’s, the US corporate parent was looking to divest their General Merchandise division, and as a result The Bargain Shop became a truly Canadian private company through a management led buy-out.
Although TBS was a chain outlet, the disappearance of local businesses leaves a social and economic void. We usually choose to do business where we perceive the best value for our time and money and the emphasis on cost above all other values leads many people to overlook the values independent businesses provide us, both personally and in our communities. Just look at the recent layoffs handed out to the Future Shop employees who have felt the effects of on-line purchasing.
A community’s quality of life changes in ways that macroeconomics is slow to measure or ignores completely. Studies have found that for each $1 spent at a local business, 45 cents is reinvested locally. Spending at companies that have no stores or ties to our community results in little to no local revenue benefit.
A recent study suggests that “A chain “superstore” may boast of creating 300 new jobs, but numerous studies indicate they displace as many jobs as they create. They concluded such development actually costs more taxpayer dollars to support in safety and services than the community would reap”.
In other words, when new big box chains come to town, expect to pay more taxes.
Dollars spent at community-based merchants create a multiplier in the local economy, meaning that from each dollar spent at a local independent merchant, up to 3.5 times as much wealth is generated in the local economy compared to a dollar spent at chain-owned businesses. This “local multiplier effect” means shifting more local purchasing to independent businesses is a key tool for creating more local jobs. Local purchasing and contracting enhances local job creation and wealth while strengthening community cohesiveness and builds a relationship with the business owners.
We often forget local business survival depends on our patronage and often the owners/operators have no influence on the prices of the goods. Although TBS had several brand name products at competitive prices the outlet couldn’t generate enough sales to sustain its existence.
Chestermere residents currently have four areas to do their shopping. There is the Chestermere Station, which continues to expand with new shops, Chestermere Towne Square, where TBS is located, Chestermere Plaza in the West Creek area of town and the newest strip mall in Rainbow Falls with a Macs Convenience store and many other businesses.
