Friday, June 03, 2005

Big Box Retail in the Crosshairs

I was reading my local paper yesterday and an article ( Clinton Township may ban "big-box' stores on Route 22 ) caught my eye and made me think.

There seems to be a growing fad amongst towns and cities to ban "Big Box" retail like stores like Home Depot and Walmart. I don't get it. It burdens local taxpayers at least twice directly and indirectly many more times. First it deprives the local government of the significant ratable to keep property taxes down. Secondly, it taxes local taxpayers by making them pay higher prices for common goods.

People clearly want Big Box retail. If they didn't the stores wouldn't be as popular and crowded as they are. The argument posited by opponents of these types of stores is that they lead to congestion, destroy local business districts and change the character of the town in which they locate.

But, do the opponent’s arguments really hold water?

Does Big Box lead to congestion? It can, but doesn't have to. The best local example of this is Route 22 in Greenwhich Township where three Big Box malls went up in a few years. The traffic situation in the area was congested, dangerous and pointed to by critics of the development to be the main reason to oppose development. However, the township working closely with DOT, actually made the traffic flow in the area better than it was before.

Does Big Box lead to the destruction of local business districts? Again, it can, but doesn't have to. Downtown Clinton seems to thrive with a Walmart right next door. The businesses there don't compete with Walmart directly. They sell items that Walmart doesn't carry. Being in business requires flexibility. If a business can't sell to customers because of price or whatever it is up to the ownership to change strategy or go under. The citizens of a town shouldn't be required to pay a higher price locally because of government protection.

Does Big Box change the character of the town in which they locate? I think they do. It might, however, be good for the town. Big Box brings more jobs for teens and low skill workers than small stores. A local hardware store may have 10 employees as opposed to the hundreds of a Home Depot. Having these big anchor stores brings in other business too. Restaurants, gas stations other smaller retail businesses. An economic vitality grows in towns that allow these businesses to set up shop.

I suspect that the opponents to Big Box stores have the same approach to them as others have to prisons. We have to have them just not in my town.

1 Comments:

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